Allocate Software (LSE:ALLA) Beneish M-Score: -2.57 (As of Jun. 26, 2026)


What is Allocate Software Beneish M-Score?

Allocate Software LSE:ALLA Beneish M-Score is -2.57 as of Jun. 26, 2026. The stock has 1 warning sign investors should review.

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 Allocate Software's Beneish M-Score or its related term are showing as below:

LSE:ALLA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Med: -2.57   Max: -0.61
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Allocate Software was -0.61. The lowest was -3.75. And the median was -2.57.

Allocate Software Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Allocate Software'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.

Allocate Software Beneish M-Score Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.04 -3.27 -2.94 -3.75 -2.57

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.94 0.00 -3.75 0.00 -2.57

LSE:ALLA vs SREV, ASUR: Beneish M-Score Comparison

For the Software - Application subindustry, Allocate Software'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.

Allocate Software Beneish M-Score vs Software Industry

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

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


Allocate Software 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 Allocate Software 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 * 0.9534+0.528 * 0.9823+0.404 * 0.8684+0.892 * 1.0796+0.115 * 1.3115
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9032+4.679 * -0.031688-0.327 * 0.8645
=-2.57

* 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 (May14) TTM:Last Year (May13) TTM:
Total Receivables was £9.70 Mil.
Revenue was £40.02 Mil.
Gross Profit was £28.65 Mil.
Total Current Assets was £27.92 Mil.
Total Assets was £42.51 Mil.
Property, Plant and Equipment(Net PPE) was £1.57 Mil.
Depreciation, Depletion and Amortization(DDA) was £2.88 Mil.
Selling, General, & Admin. Expense(SGA) was £13.41 Mil.
Total Current Liabilities was £20.47 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £3.44 Mil.
Gross Profit was £-0.12 Mil.
Cash Flow from Operations was £4.91 Mil.
 Total Receivables was £9.43 Mil.
Revenue was £37.07 Mil.
Gross Profit was £26.07 Mil.
Total Current Assets was £26.11 Mil.
Total Assets was £41.69 Mil.
Property, Plant and Equipment(Net PPE) was £0.87 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.87 Mil.
Selling, General, & Admin. Expense(SGA) was £13.75 Mil.
Total Current Liabilities was £23.22 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)
=(9.701 / 40.022) / (9.425 / 37.072)
=0.242392 / 0.254235
=0.9534

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)
=(26.067 / 37.072) / (28.648 / 40.022)
=0.703145 / 0.715806
=0.9823

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 - (27.915 + 1.572) / 42.508) / (1 - (26.114 + 0.868) / 41.687)
=0.306319 / 0.352748
=0.8684

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
=40.022 / 37.072
=1.0796

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))
=(4.87 / (4.87 + 0.868)) / (2.883 / (2.883 + 1.572))
=0.848728 / 0.647138
=1.3115

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)
=(13.405 / 40.022) / (13.747 / 37.072)
=0.334941 / 0.370819
=0.9032

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 + 20.471) / 42.508) / ((0 + 23.222) / 41.687)
=0.48158 / 0.557056
=0.8645

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
=(3.44 - -0.118 - 4.905) / 42.508
=-0.031688

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.

Allocate Software has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.57 mean?
Allocate Software (LSE:ALLA) has a Beneish M-Score of -2.57 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Allocate Software and its competitors.
Is Allocate Software's Beneish M-Score too high?
Allocate Software's current Beneish M-Score is -2.57.
How does Allocate Software's Beneish M-Score compare to SREV and ASUR?
Allocate Software's Beneish M-Score of -2.57 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Allocate Software and its competitors. Allocate Software's current Beneish M-Score is -2.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Beneish M-Score of -2.57. The current Beneish M-Score is -2.57. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Allocate Software (LSE:ALLA), the current Beneish M-Score is -2.57 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.