Invinity Energy Systems (LSE:IES) Beneish M-Score : -101.59 (As of May. 27, 2024)

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What is Invinity Energy Systems 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 -101.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:IES' s Beneish M-Score Range Over the Past 10 Years
Min: -101.59 Med: -4.34 Max: 5.41
Current: -101.59

During the past 5 years, the highest Beneish M-Score of Invinity Energy Systems was 5.41. The lowest was -101.59. And the median was -4.34.

Invinity Energy Systems Beneish M-Score Historical Data

The historical data trend for Invinity Energy Systems'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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Invinity Energy Systems Beneish M-Score Chart

Invinity Energy Systems Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-4.34

5.41

-101.59

Invinity Energy Systems Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial					-	5.41	-	-101.59	-

Competitive Comparison of Invinity Energy Systems's Beneish M-Score

For the Utilities - Renewable subindustry, Invinity Energy Systems'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.

Invinity Energy Systems's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Invinity Energy Systems's Beneish M-Score distribution charts can be found below:

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

Invinity Energy Systems 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 Invinity Energy Systems 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 * 1.1109

0.528 * -186.8931

0.404 * 1.2529

0.892 * 0.9243

0.115 * 0.8373

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.8079

4.679 * 0.062824

0.327 * 1.5239

-101.59

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was £3.49 Mil.
Revenue was £2.94 Mil.
Gross Profit was £0.02 Mil.
Total Current Assets was £25.98 Mil.
Total Assets was £53.09 Mil.
Property, Plant and Equipment(Net PPE) was £3.05 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.35 Mil.
Selling, General, & Admin. Expense(SGA) was £6.13 Mil.
Total Current Liabilities was £17.73 Mil.
Long-Term Debt & Capital Lease Obligation was £0.97 Mil.
Net Income was £-18.54 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-21.87 Mil.

Total Receivables was £3.40 Mil.
Revenue was £3.19 Mil.
Gross Profit was £-3.44 Mil.
Total Current Assets was £40.44 Mil.
Total Assets was £66.64 Mil.
Property, Plant and Equipment(Net PPE) was £2.11 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.73 Mil.
Selling, General, & Admin. Expense(SGA) was £3.67 Mil.
Total Current Liabilities was £14.98 Mil.
Long-Term Debt & Capital Lease Obligation was £0.42 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)
	=	(3.486 / 2.944)	/	(3.395 / 3.185)
	=	1.184103	/	1.065934
	=	1.1109

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)
	=	(-3.437 / 3.185)	/	(0.017 / 2.944)
	=	-1.079121	/	0.005774
	=	-186.8931

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 - (25.982 + 3.053) / 53.085)	/	(1 - (40.439 + 2.105) / 66.641)
	=	0.453047	/	0.361594
	=	1.2529

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
	=	2.944	/	3.185
	=	0.9243

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))
	=	(0.727 / (0.727 + 2.105))	/	(1.35 / (1.35 + 3.053))
	=	0.256709	/	0.306609
	=	0.8373

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)
	=	(6.128 / 2.944)	/	(3.667 / 3.185)
	=	2.081522	/	1.151334
	=	1.8079

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)
	=	((0.969 + 17.726) / 53.085)	/	((0.42 + 14.981) / 66.641)
	=	0.352171	/	0.231104
	=	1.5239

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
	=	(-18.537 - 0	-	-21.872)	/	53.085
	=	0.062824

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.

Invinity Energy Systems has a M-score of -101.59 suggests that the company is unlikely to be a manipulator.

Invinity Energy Systems Beneish M-Score Related Terms

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Invinity Energy Systems (LSE:IES) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Invinity Energy Systems PLC (LSE:IES) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

IESVF:USA IES.GB:UK J4Q5:Germany

Address

Castle Street, 3rd Floor, IFC5, St. Helier, JEY, JE2 3BY

Website

https://www.invinity.com

Invinity Energy Systems PLC operates in the manufacturing of vanadium flow battery systems and their related installation and other services. Its vanadium flow batteries are a form of heavy-duty, stationary energy storage, used in high-utilization applications such as being coupled with industrial-scale solar generation for distributed, low-carbon energy projects. The company's flow battery systems are ideal for commercial and industrial sites, grid network infrastructure projects, and off-grid applications, either standalone or alongside renewable energy such as solar PV. It generates the majority of its revenue from the sale of Battery systems and associated control systems. Its geographical segments are the United Kingdom, Asia, the United States, and Others.

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