Bitfarms (Bitfarms) Beneish M-Score : -5.06 (As of Apr. 27, 2024)

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What is Bitfarms Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -5.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Bitfarms's Beneish M-Score or its related term are showing as below:

BITF' s Beneish M-Score Range Over the Past 10 Years
Min: -5.06 Med: -0.33 Max: 17.94
Current: -5.06

During the past 7 years, the highest Beneish M-Score of Bitfarms was 17.94. The lowest was -5.06. And the median was -0.33.

Bitfarms Beneish M-Score Historical Data

The historical data trend for Bitfarms's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Bitfarms Beneish M-Score Chart

Bitfarms Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.69

3.04

17.94

-5.06

Bitfarms Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															17.94	6.49	-3.78	-4.89	-5.06

Competitive Comparison of Bitfarms's Beneish M-Score

For the Capital Markets subindustry, Bitfarms's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Bitfarms's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Bitfarms's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Bitfarms's Beneish M-Score falls into.

Bitfarms Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Bitfarms for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.1281

0.528 * -0.5027

0.404 * 1.3012

0.892 * 1.0276

0.115 * 0.8152

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7423

4.679 * -0.265618

0.327 * 0.8682

-5.11

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2.2 Mil.
Revenue was 46.241 + 34.596 + 35.479 + 30.05 = $146.4 Mil.
Gross Profit was 1.757 + -8.866 + -6.04 + -8.353 = $-21.5 Mil.
Total Current Assets was $130.0 Mil.
Total Assets was $378.7 Mil.
Property, Plant and Equipment(Net PPE) was $240.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $84.8 Mil.
Selling, General, & Admin. Expense(SGA) was $39.3 Mil.
Total Current Liabilities was $69.2 Mil.
Long-Term Debt & Capital Lease Obligation was $13.0 Mil.
Net Income was -57.373 + -18.703 + -24.894 + -2.479 = $-103.4 Mil.
Non Operating Income was -34.302 + 1.833 + -7.739 + 13.757 = $-26.5 Mil.
Cash Flow from Operations was 13.57 + 7.556 + 1.443 + 1.029 = $23.6 Mil.

Total Receivables was $16.8 Mil.
Revenue was 27.037 + 33.247 + 41.815 + 40.329 = $142.4 Mil.
Gross Profit was -12.084 + -3.939 + 9.504 + 17.037 = $10.5 Mil.
Total Current Assets was $69.1 Mil.
Total Assets was $343.1 Mil.
Property, Plant and Equipment(Net PPE) was $268.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $72.4 Mil.
Selling, General, & Admin. Expense(SGA) was $51.5 Mil.
Total Current Liabilities was $67.4 Mil.
Long-Term Debt & Capital Lease Obligation was $18.3 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(2.208 / 146.366)	/	(16.767 / 142.428)
	=	0.015085	/	0.117723
	=	0.1281

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(10.518 / 142.428)	/	(-21.502 / 146.366)
	=	0.073848	/	-0.146906
	=	-0.5027

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (129.984 + 240.14) / 378.725)	/	(1 - (69.088 + 268.022) / 343.098)
	=	0.02271	/	0.017453
	=	1.3012

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	146.366	/	142.428
	=	1.0276

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(72.42 / (72.42 + 268.022))	/	(84.785 / (84.785 + 240.14))
	=	0.212723	/	0.260937
	=	0.8152

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(39.292 / 146.366)	/	(51.506 / 142.428)
	=	0.26845	/	0.361628
	=	0.7423

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((12.993 + 69.154) / 378.725)	/	((18.308 + 67.413) / 343.098)
	=	0.216904	/	0.249844
	=	0.8682

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-103.449 - -26.451	-	23.598)	/	378.725
	=	-0.265618

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Bitfarms has a M-score of -5.11 suggests that the company is unlikely to be a manipulator.

Bitfarms Beneish M-Score Related Terms

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Bitfarms (Bitfarms) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Bitfarms Ltd (NAS:BITF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

1B2:Germany 1B2:Germany BITF:Canada

Address

18 King Street East, Suite 902, Toronto, ON, CAN, M5C 1C4

Website

https://www.bitfarms.com

Bitfarms Ltd is a publicly traded Bitcoin company. It develops, owns, and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The company's proprietary data analytics system delivers best-in-class operational performance and uptime. The group has around 10 farms, which are located in four countries: Canada, the United States, Paraguay, and Argentina. It is Powered by predominantly environmentally friendly hydroelectric and long-term power contracts, Bitfarms is committed to using sustainable, locally based, and often underutilized energy infrastructure.