Endace (LSE:EDA) Beneish M-Score : 0.00 (As of Jun. 20, 2024)

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

During the past 9 years, the highest Beneish M-Score of Endace was 0.00. The lowest was 0.00. And the median was 0.00.

Endace Beneish M-Score Historical Data

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

Endace Annual Data

Trend

Mar03

Mar04

Mar05

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Beneish M-Score

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-6.08

-2.70

Endace Semi-Annual Data
	Sep06	Mar07	Sep07	Mar08	Sep08	Mar09	Mar12	Sep12
Beneish M-Score	Get a 7-Day Free Trial			-6.08	-	-2.70	-	-

Competitive Comparison of Endace's Beneish M-Score

For the Software - Application subindustry, Endace'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.

Endace's Beneish M-Score Distribution in the Software Industry

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

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

Endace 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 Endace 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

0.528 * 0.9614

0.404 * 0.8597

0.892 * 1.1531

0.115 * 1.0096

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9962

4.679 * -0.183264

0.327 * 1.2252

-3.35

This Year (Mar11) TTM:

Last Year (Mar10) TTM:

Total Receivables was £0.00 Mil.
Revenue was £23.75 Mil.
Gross Profit was £15.80 Mil.
Total Current Assets was £13.67 Mil.
Total Assets was £25.54 Mil.
Property, Plant and Equipment(Net PPE) was £3.12 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.54 Mil.
Selling, General, & Admin. Expense(SGA) was £10.60 Mil.
Total Current Liabilities was £7.42 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £1.34 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £6.02 Mil.

Total Receivables was £0.00 Mil.
Revenue was £20.60 Mil.
Gross Profit was £13.17 Mil.
Total Current Assets was £10.63 Mil.
Total Assets was £22.84 Mil.
Property, Plant and Equipment(Net PPE) was £3.11 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.54 Mil.
Selling, General, & Admin. Expense(SGA) was £9.22 Mil.
Total Current Liabilities was £5.42 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 / 23.749)	/	(0 / 20.595)
	=	0	/	0
	=	1

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)
	=	(13.174 / 20.595)	/	(15.802 / 23.749)
	=	0.63967	/	0.665375
	=	0.9614

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 - (13.672 + 3.119) / 25.537)	/	(1 - (10.63 + 3.113) / 22.843)
	=	0.342483	/	0.398371
	=	0.8597

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
	=	23.749	/	20.595
	=	1.1531

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))
	=	(0.542 / (0.542 + 3.113))	/	(0.537 / (0.537 + 3.119))
	=	0.14829	/	0.146882
	=	1.0096

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)
	=	(10.596 / 23.749)	/	(9.224 / 20.595)
	=	0.446166	/	0.447876
	=	0.9962

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 + 7.418) / 25.537)	/	((0 + 5.416) / 22.843)
	=	0.29048	/	0.237097
	=	1.2252

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
	=	(1.336 - 0	-	6.016)	/	25.537
	=	-0.183264

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.

Endace has a M-score of -3.35 suggests that the company is unlikely to be a manipulator.

Endace Beneish M-Score Related Terms

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Endace (LSE:EDA) Business Description

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