Atlantic Coal (LSE:ATC) Beneish M-Score : 1.50 (As of Jun. 04, 2024)

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What is Atlantic Coal 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.

Warning Sign:

Beneish M-Score 1.5 higher than -2.22, which implies that it might have manipulated its financial results.

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

LSE:ATC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84 Med: -2.83 Max: 1.5
Current: 1.5

During the past 8 years, the highest Beneish M-Score of Atlantic Coal was 1.50. The lowest was -2.84. And the median was -2.83.

Atlantic Coal Beneish M-Score Historical Data

The historical data trend for Atlantic Coal'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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Atlantic Coal Beneish M-Score Chart

Atlantic Coal Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Beneish M-Score

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-2.83

-2.84

1.50

Atlantic Coal Semi-Annual Data
	Jun06	Jun07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Beneish M-Score	Get a 7-Day Free Trial												-	-2.84	-	1.50	-

Competitive Comparison of Atlantic Coal's Beneish M-Score

For the Coking Coal subindustry, Atlantic Coal'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.

Atlantic Coal's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Atlantic Coal's Beneish M-Score distribution charts can be found below:

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

Atlantic Coal 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 Atlantic Coal 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 * 1.466

0.528 * 8.2567

0.404 * 2.7587

0.892 * 0.9802

0.115 * 1.0695

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0575

4.679 * -0.160342

0.327 * 1.5689

1.53

This Year (Dec14) TTM:

Last Year (Dec13) TTM:

Total Receivables was £1.49 Mil.
Revenue was £11.76 Mil.
Gross Profit was £0.26 Mil.
Total Current Assets was £3.24 Mil.
Total Assets was £21.61 Mil.
Property, Plant and Equipment(Net PPE) was £18.24 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.96 Mil.
Selling, General, & Admin. Expense(SGA) was £2.16 Mil.
Total Current Liabilities was £7.71 Mil.
Long-Term Debt & Capital Lease Obligation was £6.53 Mil.
Net Income was £-2.26 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £1.20 Mil.

Total Receivables was £1.04 Mil.
Revenue was £11.99 Mil.
Gross Profit was £2.21 Mil.
Total Current Assets was £4.28 Mil.
Total Assets was £17.70 Mil.
Property, Plant and Equipment(Net PPE) was £13.38 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.55 Mil.
Selling, General, & Admin. Expense(SGA) was £2.08 Mil.
Total Current Liabilities was £6.33 Mil.
Long-Term Debt & Capital Lease Obligation was £1.10 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)
	=	(1.493 / 11.756)	/	(1.039 / 11.994)
	=	0.126999	/	0.086627
	=	1.466

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)
	=	(2.207 / 11.994)	/	(0.262 / 11.756)
	=	0.184009	/	0.022286
	=	8.2567

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 - (3.244 + 18.238) / 21.61)	/	(1 - (4.284 + 13.377) / 17.699)
	=	0.005923	/	0.002147
	=	2.7587

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
	=	11.756	/	11.994
	=	0.9802

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))
	=	(1.549 / (1.549 + 13.377))	/	(1.96 / (1.96 + 18.238))
	=	0.103779	/	0.097039
	=	1.0695

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)
	=	(2.157 / 11.756)	/	(2.081 / 11.994)
	=	0.183481	/	0.173503
	=	1.0575

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)
	=	((6.525 + 7.708) / 21.61)	/	((1.104 + 6.326) / 17.699)
	=	0.65863	/	0.419798
	=	1.5689

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
	=	(-2.262 - 0	-	1.203)	/	21.61
	=	-0.160342

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.

Atlantic Coal has a M-score of 1.53 signals that the company is likely to be a manipulator.

Atlantic Coal Beneish M-Score Related Terms

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Atlantic Coal (LSE:ATC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Atlantic Coal PLC (LSE:ATC) » Definitions » Beneish M-Score

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Address

Website

http://www.atlanticcoal.com

Atlantic Carbon Group PLC, formerly Atlantic Coal PLC was incorporated on December 17, 2004 in the United Kingdom. The Company is a coal production and processing company, working on open cast mining and the processing of high-grade, low emission coal. It develops and operates the Stockton Colliery, an opencast anthracite mining and anthracite washing plant encompassing an area of approximately 900 hectares located in Hazel Creek in north-east Pennsylvania, the United States.