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LMS Capital (LSE:LMS) Beneish M-Score : 0.00 (As of Mar. 04, 2025)


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What is LMS Capital Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 LMS Capital's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of LMS Capital was -9.83. The lowest was -9.83. And the median was -9.83.


LMS Capital 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 LMS Capital 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was £0.00 Mil.
Revenue was £-1.55 Mil.
Gross Profit was £-1.55 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £45.07 Mil.
Property, Plant and Equipment(Net PPE) was £0.04 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.03 Mil.
Selling, General, & Admin. Expense(SGA) was £1.68 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £0.05 Mil.
Net Income was £-3.73 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-5.52 Mil.
Total Receivables was £0.00 Mil.
Revenue was £0.10 Mil.
Gross Profit was £0.10 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £88.05 Mil.
Property, Plant and Equipment(Net PPE) was £0.07 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.03 Mil.
Selling, General, & Admin. Expense(SGA) was £1.48 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £0.08 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 / -1.553) / (0 / 0.096)
= / 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)
=(0.096 / 0.096) / (-1.553 / -1.553)
=1 /
=

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 + 0.042) / 45.072) / (1 - (0 + 0.07) / 88.048)
=0.999068 / 0.999205
=

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
=-1.553 / 0.096
=

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))
=(0.027 / (0.027 + 0.07)) / (0.028 / (0.028 + 0.042))
=0.278351 / 0.4
=

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)
=(1.684 / -1.553) / (1.481 / 0.096)
= / 15.427083
=

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)
=((0.047 + 0) / 45.072) / ((0.075 + 0) / 88.048)
=0.001043 / 0.000852
=

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
=(-3.732 - 0 - -5.522) / 45.072
=0.039714

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.


LMS Capital Beneish M-Score Related Terms

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LMS Capital Business Description

Traded in Other Exchanges
N/A
Address
3 Bromley Place, London, GBR, W1T 6DB
LMS Capital PLC is a United Kingdom-based investment firm that provides funding to small to medium-sized public and private businesses. Its investment objective is to achieve total returns over the medium to longer term, principally through capital gains and supplemented with the generation of longer-term income yield. The company focuses on established, profitable, and cash-generative companies. Its investment portfolio consists of publicly quoted and private company investments in various sectors, which include technology, property, energy, and consumer.