Itoco (ITMC) Beneish M-Score : 0.00 (As of Jun. 23, 2024)

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What is Itoco 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 Itoco's Beneish M-Score or its related term are showing as below:

During the past 2 years, the highest Beneish M-Score of Itoco was 0.00. The lowest was 0.00. And the median was 0.00.

Itoco Beneish M-Score Historical Data

The historical data trend for Itoco'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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Itoco Beneish M-Score Chart

Itoco Annual Data

Trend

Dec08

Dec09

Beneish M-Score

Itoco Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10
Beneish M-Score	Get a 7-Day Free Trial						-	-	-	-	-

Competitive Comparison of Itoco's Beneish M-Score

For the Biotechnology subindustry, Itoco'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.

Itoco's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Itoco's Beneish M-Score distribution charts can be found below:

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

Itoco 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 Itoco 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

This Year (Sep10) TTM:

Last Year (Sep09) TTM:

Total Receivables was $0.12 Mil.
Revenue was 0.011 + 0.002 + 0.041 + 0.323 = $0.38 Mil.
Gross Profit was 0.002 + 0.001 + 0.029 + -0.214 = $-0.18 Mil.
Total Current Assets was $0.78 Mil.
Total Assets was $1.92 Mil.
Property, Plant and Equipment(Net PPE) was $1.04 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.45 Mil.
Selling, General, & Admin. Expense(SGA) was $1.64 Mil.
Total Current Liabilities was $4.29 Mil.
Long-Term Debt & Capital Lease Obligation was $1.20 Mil.
Net Income was 0.113 + -0.579 + -0.173 + -1.854 = $-2.49 Mil.
Non Operating Income was 0.348 + -0.17 + 0 + -0.013 = $0.17 Mil.
Cash Flow from Operations was -0.234 + -2.105 + -0.164 + -0.443 = $-2.95 Mil.

Total Receivables was $0.00 Mil.
Revenue was 0.444 + 0.138 + 0.546 + 6.775 = $7.90 Mil.
Gross Profit was 0.336 + 0.041 + 0.046 + 4.326 = $4.75 Mil.
Total Current Assets was $0.01 Mil.
Total Assets was $0.01 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.37 Mil.
Selling, General, & Admin. Expense(SGA) was $2.08 Mil.
Total Current Liabilities was $0.01 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)
	=	(0.122 / 0.377)	/	(0 / 7.903)
	=	0.323607	/	0
	=

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)
	=	(4.749 / 7.903)	/	(-0.182 / 0.377)
	=	0.600911	/	-0.482759
	=

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 - (0.778 + 1.036) / 1.915)	/	(1 - (0.008 + 0.003) / 0.011)
	=	0.052742	/	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
	=	0.377	/	7.903
	=

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))
	=	(0.372 / (0.372 + 0.003))	/	(0.447 / (0.447 + 1.036))
	=	0.992	/	0.301416
	=

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)
	=	(1.644 / 0.377)	/	(2.076 / 7.903)
	=	4.360743	/	0.262685
	=

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)
	=	((1.195 + 4.288) / 1.915)	/	((0 + 0.01) / 0.011)
	=	2.863185	/	0.909091
	=

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
	=	(-2.493 - 0.165	-	-2.946)	/	1.915
	=	0.150392

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.

Itoco Beneish M-Score Related Terms

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Itoco (ITMC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Itoco Inc (OTCPK:ITMC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

50 West Liberty Street, Suite 880, Reno, NV, USA, 89501

Website

https://www.itoco.net

Itoco Inc is focused on developing and bringing biotech products to the market via co-development and joint venture arrangements with various companies. The company is currently examining various technologies that seek to control and/or identify bio-contaminants such as viruses and bacteria.