DETRF (Deterra Royalties) Beneish M-Score : -5.37 (As of Mar. 24, 2025)

View and export this data going back to 2020. Start your Free Trial

What is Deterra Royalties 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 -5.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DETRF' s Beneish M-Score Range Over the Past 10 Years
Min: -5.37 Med: -4.82 Max: -4.27
Current: -5.37

During the past 4 years, the highest Beneish M-Score of Deterra Royalties was -4.27. The lowest was -5.37. And the median was -4.82.

Deterra Royalties Beneish M-Score Historical Data

The historical data trend for Deterra Royalties'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.

* Premium members only.

Deterra Royalties Beneish M-Score Chart

Deterra Royalties Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

-4.27

-5.37

Deterra Royalties Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Beneish M-Score	Get a 7-Day Free Trial			-	-4.27	-	-5.37	-

Competitive Comparison of Deterra Royalties's Beneish M-Score

For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.

Deterra Royalties's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Beneish M-Score distribution charts can be found below:

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

Deterra Royalties 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 Deterra Royalties 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 * 0.7649

0.528 * 1

0.404 * 0.9975

0.892 * 1.0379

0.115 * 1.3937

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1002

4.679 * -0.109664

0.327 * 7.8281

-5.38

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was $39.0 Mil.
Revenue was $159.7 Mil.
Gross Profit was $159.7 Mil.
Total Current Assets was $61.3 Mil.
Total Assets was $67.3 Mil.
Property, Plant and Equipment(Net PPE) was $0.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $3.2 Mil.
Total Current Liabilities was $4.8 Mil.
Long-Term Debt & Capital Lease Obligation was $0.3 Mil.
Net Income was $102.8 Mil.
Gross Profit was $-2.8 Mil.
Cash Flow from Operations was $113.0 Mil.

Total Receivables was $49.1 Mil.
Revenue was $153.9 Mil.
Gross Profit was $153.9 Mil.
Total Current Assets was $69.6 Mil.
Total Assets was $76.2 Mil.
Property, Plant and Equipment(Net PPE) was $0.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $2.8 Mil.
Total Current Liabilities was $0.7 Mil.
Long-Term Debt & Capital Lease Obligation was $0.1 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)
	=	(38.951 / 159.701)	/	(49.063 / 153.868)
	=	0.2439	/	0.318864
	=	0.7649

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)
	=	(153.868 / 153.868)	/	(159.701 / 159.701)
	=	1	/	1
	=	1

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 - (61.272 + 0.412) / 67.26)	/	(1 - (69.646 + 0.181) / 76.156)
	=	0.082902	/	0.083106
	=	0.9975

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
	=	159.701	/	153.868
	=	1.0379

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))
	=	(0.266 / (0.266 + 0.181))	/	(0.307 / (0.307 + 0.412))
	=	0.595078	/	0.426982
	=	1.3937

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)
	=	(3.219 / 159.701)	/	(2.819 / 153.868)
	=	0.020156	/	0.018321
	=	1.1002

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)
	=	((0.267 + 4.766) / 67.26)	/	((0.078 + 0.65) / 76.156)
	=	0.074829	/	0.009559
	=	7.8281

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
	=	(102.846 - -2.781	-	113.003)	/	67.26
	=	-0.109664

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.

Deterra Royalties has a M-score of -5.38 suggests that the company is unlikely to be a manipulator.

Deterra Royalties Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Deterra Royalties's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Deterra Royalties Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Deterra Royalties Ltd (OTCPK:DETRF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DRR:Australia

Address

140 St Georges Terrace, Level 16, Perth, WA, AUS, 6000

Website

https://www.iluka.com

Deterra Royalties was spun out from Iluka Resources in October 2020, with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area in Western Australia. This includes the North Flank mine, producing around 60 million metric tons of iron ore a year, and the South Flank mine, expected to add 85 million metric tons after producing first ore in 2021. It also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Consistent with its strategy to grow into a diversified royalty firm, its Trident Royalties purchase is likely to provide modest diversification from iron ore.