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Euroseas (NAS:ESEA) Beneish M-Score

: -0.23 (As of Today)
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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.

Warning Sign:

Beneish M-Score -0.23 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ESEA' s Beneish M-Score Range Over the Past 10 Years
Min: -5.14   Med: -2.51   Max: 25.12
Current: -0.23

During the past 13 years, the highest Beneish M-Score of Euroseas was 25.12. The lowest was -5.14. And the median was -2.51.


Euroseas Beneish M-Score Historical Data

The historical data trend for Euroseas'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.

Euroseas Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.77 -2.94 -2.15 -2.62 -1.76

Euroseas Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.12 -1.84 -2.17 -1.76 -0.23

Competitive Comparison

For the Marine Shipping subindustry, Euroseas'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.

   

Euroseas Beneish M-Score Distribution

For the Transportation industry and Industrials sector, Euroseas's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Euroseas's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



Euroseas 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 Euroseas for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 3.2346+0.528 * 1.0205+0.404 * 0.6495+0.892 * 1.4346+0.115 * 0.806
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8543+4.679 * -0.029059-0.327 * 0.7804
=-0.23

* 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.

This Year (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was $11.2 Mil.
Revenue was 41.937 + 42.886 + 45.955 + 48.48 = $179.3 Mil.
Gross Profit was 25.823 + 22.448 + 26.933 + 34.029 = $109.2 Mil.
Total Current Assets was $45.0 Mil.
Total Assets was $361.1 Mil.
Property, Plant and Equipment(Net PPE) was $309.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.1 Mil.
Selling, General, & Admin. Expense(SGA) was $9.9 Mil.
Total Current Liabilities was $68.5 Mil.
Long-Term Debt & Capital Lease Obligation was $69.6 Mil.
Net Income was 28.755 + 20.336 + 25.223 + 30.75 = $105.1 Mil.
Non Operating Income was 4.879 + 0.223 + 1.839 + 0.004 = $6.9 Mil.
Cash Flow from Operations was 24.751 + 18.735 + 31.31 + 33.815 = $108.6 Mil.
Total Receivables was $2.4 Mil.
Revenue was 45.374 + 38.252 + 23.04 + 18.291 = $125.0 Mil.
Gross Profit was 31.112 + 26.299 + 10.833 + 9.459 = $77.7 Mil.
Total Current Assets was $54.4 Mil.
Total Assets was $241.8 Mil.
Property, Plant and Equipment(Net PPE) was $180.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.3 Mil.
Selling, General, & Admin. Expense(SGA) was $8.1 Mil.
Total Current Liabilities was $41.3 Mil.
Long-Term Debt & Capital Lease Obligation was $77.2 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)
=(11.183 / 179.258) / (2.41 / 124.957)
=0.062385 / 0.019287
=3.2346

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)
=(77.703 / 124.957) / (109.233 / 179.258)
=0.621838 / 0.609362
=1.0205

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 - (44.995 + 309.733) / 361.053) / (1 - (54.433 + 180.802) / 241.756)
=0.017518 / 0.026973
=0.6495

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
=179.258 / 124.957
=1.4346

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))
=(9.329 / (9.329 + 180.802)) / (20.077 / (20.077 + 309.733))
=0.049066 / 0.060874
=0.806

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)
=(9.917 / 179.258) / (8.092 / 124.957)
=0.055322 / 0.064758
=0.8543

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)
=((69.593 + 68.521) / 361.053) / ((77.182 + 41.323) / 241.756)
=0.382531 / 0.490184
=0.7804

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
=(105.064 - 6.945 - 108.611) / 361.053
=-0.029059

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.

Euroseas has a M-score of -0.23 signals that the company is likely to be a manipulator.


Euroseas Beneish M-Score Related Terms

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Euroseas (NAS:ESEA) Business Description

Euroseas logo
Traded in Other Exchanges
Address
4 Messogiou and Evropis Street, Maroussi, GRC, 151 24
Euroseas Ltd is a shipping company. Its fleet consists of containerships that transport container boxes providing scheduled service between ports. Its operations are managed by an affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. The company employs its vessels on spot and period charters and through pool arrangements.

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