Ridgecrest (LSE:RDGC) Beneish M-Score

: 0.00 (As of Today)

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

During the past 13 years, the highest Beneish M-Score of Ridgecrest was 0.00. The lowest was 0.00. And the median was 0.00.

Ridgecrest Beneish M-Score Historical Data

The historical data trend for Ridgecrest'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.

* Premium members only.

Ridgecrest Annual Data

Trend

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Beneish M-Score

-2.55

-5.78

-4.34

-1.92

-4.66

Ridgecrest Semi-Annual Data
	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21
Beneish M-Score																-	-1.92	-	-4.66	-

Competitive Comparison

For the Staffing & Employment Services subindustry, Ridgecrest'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.

Annual Data Quarterly Data

Ridgecrest Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Ridgecrest's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ridgecrest's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.

Ridgecrest 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 Ridgecrest 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 * 0.06

0.528 * 1.1566

0.404 * 0

0.892 * 0.4767

0.115 * 0.381

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1721

4.679 * -0.1582

0.327 * 0.0381

-4.66

This Year (Mar21) TTM:

Last Year (Mar20) TTM:

Total Receivables was £0.04 Mil.
Revenue was £4.63 Mil.
Gross Profit was £1.20 Mil.
Total Current Assets was £2.05 Mil.
Total Assets was £2.05 Mil.
Property, Plant and Equipment(Net PPE) was £0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.00 Mil.
Selling, General, & Admin. Expense(SGA) was £1.68 Mil.
Total Current Liabilities was £0.07 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £0.01 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £0.33 Mil.

Total Receivables was £1.40 Mil.
Revenue was £9.72 Mil.
Gross Profit was £2.91 Mil.
Total Current Assets was £1.69 Mil.
Total Assets was £1.72 Mil.
Property, Plant and Equipment(Net PPE) was £0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.01 Mil.
Selling, General, & Admin. Expense(SGA) was £3.01 Mil.
Total Current Liabilities was £1.63 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)
	=	(0.04 / 4.633)	/	(1.398 / 9.719)
	=	0.00863371	/	0.14384196
	=	0.06

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)
	=	(2.914 / 9.719)	/	(1.201 / 4.633)
	=	0.29982508	/	0.25922728
	=	1.1566

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 - (2.048 + 0) / 2.048)	/	(1 - (1.687 + 0.013) / 1.718)
	=	0	/	0.0104773
	=	0

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
	=	4.633	/	9.719
	=	0.4767

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))
	=	(0.008 / (0.008 + 0.013))	/	(0.003 / (0.003 + 0))
	=	0.38095238	/	1
	=	0.381

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 / 4.633)	/	(3.014 / 9.719)
	=	0.36347939	/	0.31011421
	=	1.1721

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 + 0.074) / 2.048)	/	((0 + 1.631) / 1.718)
	=	0.03613281	/	0.94935972
	=	0.0381

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
	=	(0.007 - 0	-	0.331)	/	2.048
	=	-0.1582

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.

Ridgecrest has a M-score of -4.66 suggests that the company is unlikely to be a manipulator.

Ridgecrest Beneish M-Score Related Terms

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Ridgecrest (LSE:RDGC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Ridgecrest PLC (LSE:RDGC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

475 Godstone Road, Bourne House, Whyteleafe, Surrey, GBR, CR3 0BL

Website

https://www.ridgecrestplc.com

Ridgecrest PLC is a recruitment company of two branded solutions placing people into specialist and management positions. It offers permanent, temporary, and contract recruitment services to corporations, creative agencies, start-ups, and SME's, as well as services for business change and in insurance and investment management under the Highams brand. It operates in two segments: the United Kingdom(UK), which accounts for majority revenue; and the Asia Pacific. The Asia Pacific includes Hong Kong & Singapore, and the UK segment includes candidates placed in the UK and Europe. The company operates in the digital, creative, media, marketing, and technology sectors.

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