Microlise Group (LSE:SAAS) Beneish M-Score : -2.59 (As of Jun. 17, 2024)

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What is Microlise Group 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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:SAAS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.59 Max: -2.19
Current: -2.59

During the past 5 years, the highest Beneish M-Score of Microlise Group was -2.19. The lowest was -3.07. And the median was -2.59.

Microlise Group Beneish M-Score Historical Data

The historical data trend for Microlise Group'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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Microlise Group Beneish M-Score Chart

Microlise Group Annual Data

Trend

Jun19

Jun20

Jun21

Dec22

Dec23

Beneish M-Score

-2.19

-3.07

-2.59

Microlise Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-2.19	-	-3.07	-	-2.59

Competitive Comparison of Microlise Group's Beneish M-Score

For the Software - Application subindustry, Microlise Group'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.

Microlise Group's Beneish M-Score Distribution in the Software Industry

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

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

Microlise Group 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 Microlise Group 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 * 1.0877

0.528 * 0.9797

0.404 * 0.9638

0.892 * 1.1345

0.115 * 0.9582

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0264

4.679 * -0.05478

0.327 * 1.0627

-2.59

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £16.05 Mil.
Revenue was £71.72 Mil.
Gross Profit was £43.58 Mil.
Total Current Assets was £41.57 Mil.
Total Assets was £131.18 Mil.
Property, Plant and Equipment(Net PPE) was £8.95 Mil.
Depreciation, Depletion and Amortization(DDA) was £6.08 Mil.
Selling, General, & Admin. Expense(SGA) was £42.30 Mil.
Total Current Liabilities was £33.54 Mil.
Long-Term Debt & Capital Lease Obligation was £0.65 Mil.
Net Income was £1.58 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £8.76 Mil.

Total Receivables was £13.01 Mil.
Revenue was £63.21 Mil.
Gross Profit was £37.63 Mil.
Total Current Assets was £37.37 Mil.
Total Assets was £126.14 Mil.
Property, Plant and Equipment(Net PPE) was £8.29 Mil.
Depreciation, Depletion and Amortization(DDA) was £5.25 Mil.
Selling, General, & Admin. Expense(SGA) was £36.33 Mil.
Total Current Liabilities was £30.00 Mil.
Long-Term Debt & Capital Lease Obligation was £0.93 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)
	=	(16.053 / 71.716)	/	(13.008 / 63.211)
	=	0.223841	/	0.205787
	=	1.0877

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)
	=	(37.634 / 63.211)	/	(43.584 / 71.716)
	=	0.595371	/	0.60773
	=	0.9797

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 - (41.57 + 8.947) / 131.179)	/	(1 - (37.367 + 8.292) / 126.136)
	=	0.6149	/	0.638018
	=	0.9638

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
	=	71.716	/	63.211
	=	1.1345

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))
	=	(5.248 / (5.248 + 8.292))	/	(6.077 / (6.077 + 8.947))
	=	0.387592	/	0.404486
	=	0.9582

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)
	=	(42.302 / 71.716)	/	(36.326 / 63.211)
	=	0.589854	/	0.574678
	=	1.0264

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)
	=	((0.646 + 33.537) / 131.179)	/	((0.926 + 30.004) / 126.136)
	=	0.260583	/	0.245212
	=	1.0627

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
	=	(1.576 - 0	-	8.762)	/	131.179
	=	-0.05478

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.

Microlise Group has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Microlise Group Beneish M-Score Related Terms

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Microlise Group (LSE:SAAS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Microlise Group PLC (LSE:SAAS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

2DI:Germany

Address

Farrington Way, Eastwood, Nottingham, GBR, NG16 3AG

Website

https://www.microlise.com

Microlise Group PLC is a provider of transportation management solutions to enterprise customers. It automates and optimizes critical processes such as scheduling, routing, driver performance monitoring, and resource allocation, while providing valuable, actionable real-time data.