Alfa Financial Software Holdings (FRA:A9F) Beneish M-Score : -3.25 (As of Dec. 11, 2024)

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What is Alfa Financial Software Holdings 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 -3.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:A9F' s Beneish M-Score Range Over the Past 10 Years
Min: -3.62 Med: -2.82 Max: -1.19
Current: -3.25

During the past 11 years, the highest Beneish M-Score of Alfa Financial Software Holdings was -1.19. The lowest was -3.62. And the median was -2.82.

Alfa Financial Software Holdings Beneish M-Score Historical Data

The historical data trend for Alfa Financial Software Holdings'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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Alfa Financial Software Holdings Beneish M-Score Chart

Alfa Financial Software Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.29

-3.08

-2.82

-2.45

-3.25

Alfa Financial Software Holdings Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial														-	-2.45	-	-3.25	-

Competitive Comparison of Alfa Financial Software Holdings's Beneish M-Score

For the Software - Application subindustry, Alfa Financial Software Holdings'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.

Alfa Financial Software Holdings's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Alfa Financial Software Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Alfa Financial Software Holdings's Beneish M-Score falls into.

Alfa Financial Software Holdings 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 Alfa Financial Software Holdings 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 * 0.6157

0.528 * 1.028

0.404 * 1.0395

0.892 * 1.1036

0.115 * 1.0376

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0121

4.679 * -0.115839

0.327 * 0.9822

-3.24

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €12.2 Mil.
Revenue was €118.4 Mil.
Gross Profit was €73.9 Mil.
Total Current Assets was €44.1 Mil.
Total Assets was €87.2 Mil.
Property, Plant and Equipment(Net PPE) was €8.2 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.9 Mil.
Selling, General, & Admin. Expense(SGA) was €39.8 Mil.
Total Current Liabilities was €29.7 Mil.
Long-Term Debt & Capital Lease Obligation was €7.9 Mil.
Net Income was €27.3 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €37.4 Mil.

Total Receivables was €17.9 Mil.
Revenue was €107.3 Mil.
Gross Profit was €68.9 Mil.
Total Current Assets was €44.8 Mil.
Total Assets was €88.0 Mil.
Property, Plant and Equipment(Net PPE) was €9.3 Mil.
Depreciation, Depletion and Amortization(DDA) was €3.4 Mil.
Selling, General, & Admin. Expense(SGA) was €35.6 Mil.
Total Current Liabilities was €29.4 Mil.
Long-Term Debt & Capital Lease Obligation was €9.2 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)
	=	(12.188 / 118.397)	/	(17.937 / 107.278)
	=	0.102942	/	0.167201
	=	0.6157

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)
	=	(68.874 / 107.278)	/	(73.94 / 118.397)
	=	0.642014	/	0.624509
	=	1.028

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 - (44.109 + 8.241) / 87.173)	/	(1 - (44.843 + 9.314) / 87.961)
	=	0.39947	/	0.384307
	=	1.0395

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
	=	118.397	/	107.278
	=	1.1036

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))
	=	(3.449 / (3.449 + 9.314))	/	(2.902 / (2.902 + 8.241))
	=	0.270234	/	0.260433
	=	1.0376

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)
	=	(39.814 / 118.397)	/	(35.644 / 107.278)
	=	0.336275	/	0.332258
	=	1.0121

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)
	=	((7.893 + 29.715) / 87.173)	/	((9.199 + 29.435) / 87.961)
	=	0.431418	/	0.439217
	=	0.9822

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
	=	(27.278 - 0	-	37.376)	/	87.173
	=	-0.115839

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.

Alfa Financial Software Holdings has a M-score of -3.24 suggests that the company is unlikely to be a manipulator.

Alfa Financial Software Holdings Beneish M-Score Related Terms

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Alfa Financial Software Holdings Business Description

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ALFAl:UK ALFA:UK

Address

1 Fore Street Avenue, Moor Place, London, GBR, EC2Y 9DT

Website

https://www.alfasystems.com

Alfa Financial Software Holdings PLC provides software and services to the auto and equipment finance industries. Alfa Systems its technology platform, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, including leases/loans, originations, and servicing. An end-to-end solution with integrated workflow and automated processing using business rules, it provides compelling solutions to asset finance companies. The company generates a majority of its revenue from the United Kingdom and the rest from the United States, and other regions.

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