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FOMI (Formation Minerals) Beneish M-Score : 0.00 (As of Dec. 13, 2024)


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What is Formation Minerals 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.

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

During the past 4 years, the highest Beneish M-Score of Formation Minerals was 0.00. The lowest was 0.00. And the median was 0.00.


Formation Minerals Beneish M-Score Historical Data

The historical data trend for Formation Minerals'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.

Formation Minerals Beneish M-Score Chart

Formation Minerals Annual Data
Trend Apr21 Apr22 Apr23 Apr24
Beneish M-Score
- - - -

Formation Minerals Quarterly Data
Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Formation Minerals's Beneish M-Score

For the Oil & Gas E&P subindustry, Formation Minerals'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.


Formation Minerals's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Formation Minerals's Beneish M-Score distribution charts can be found below:

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



Formation Minerals 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 Formation Minerals 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 (Jul24) TTM:Last Year (Jul23) TTM:
Total Receivables was $0.09 Mil.
Revenue was 0.036 + 0 + 0 + 0.001 = $0.04 Mil.
Gross Profit was 0.018 + 0 + 0 + 0.001 = $0.02 Mil.
Total Current Assets was $0.09 Mil.
Total Assets was $0.33 Mil.
Property, Plant and Equipment(Net PPE) was $0.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General, & Admin. Expense(SGA) was $1.72 Mil.
Total Current Liabilities was $2.55 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 0.289 + -0.023 + -1.348 + -0.159 = $-1.24 Mil.
Non Operating Income was 1.044 + 0 + -0.519 + 0 = $0.53 Mil.
Cash Flow from Operations was -0.289 + -0.086 + -0.013 + 0.28 = $-0.11 Mil.
Total Receivables was $0.01 Mil.
Revenue was 0.076 + 0 + 0 + 0.001 = $0.08 Mil.
Gross Profit was 0.004 + 0 + 0 + 0.001 = $0.01 Mil.
Total Current Assets was $0.03 Mil.
Total Assets was $0.03 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.09 Mil.
Selling, General, & Admin. Expense(SGA) was $0.76 Mil.
Total Current Liabilities was $1.14 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
=(0.089 / 0.037) / (0.013 / 0.077)
=2.405405 / 0.168831
=

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)
=(0.005 / 0.077) / (0.019 / 0.037)
=0.064935 / 0.513514
=

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 - (0.089 + 0.236) / 0.325) / (1 - (0.025 + 0) / 0.025)
=0 / 0
=

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
=0.037 / 0.077
=

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))
=(0.086 / (0.086 + 0)) / (0.018 / (0.018 + 0.236))
=1 / 0.070866
=

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)
=(1.716 / 0.037) / (0.762 / 0.077)
=46.378378 / 9.896104
=

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 + 2.55) / 0.325) / ((0 + 1.142) / 0.025)
=7.846154 / 45.68
=

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
=(-1.241 - 0.525 - -0.108) / 0.325
=-5.101538

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.


Formation Minerals Beneish M-Score Related Terms

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Formation Minerals Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
P.O. Box 67, Jacksboro, TX, USA, 76458
Formation Minerals Inc is engaged in the acquisition and management of high-growth oil and gas minerals and royalties in the U.S. basins. The company is focused on providing returns through asset growth generated by acquisitions and organic growth of properties. Its portfolio includes the DJ Basin of Colorado and Wyoming, the Haynesville Shale of Louisiana, the Delaware and Permian Basin of Texas, the Marcellus and Utica shales in West Virginia, and the Anadarko Basin in Oklahoma.
Executives
Erik Savenstrand director 505 PARK AVENUE, 4TH FLOOR, NEW YORK NY 10022
John Damien Trainor director, 10 percent owner, officer: Chief Executive Officer 505 PARK AVENUE, 4TH FLOOR, NEW YORK NY 10022