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Atlas (LTS:0EAL) Beneish M-Score : -2.63 (As of Apr. 25, 2024)


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What is Atlas 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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LTS:0EAL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4   Med: -2.52   Max: 9.5
Current: -2.63

During the past 13 years, the highest Beneish M-Score of Atlas was 9.50. The lowest was -3.40. And the median was -2.52.


Atlas Beneish M-Score Historical Data

The historical data trend for Atlas'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.

Atlas Beneish M-Score Chart

Atlas Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.25 -1.36 -2.24 -2.69 -2.03

Atlas Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.47 -2.54 -2.03 -2.43 -2.63

Competitive Comparison of Atlas's Beneish M-Score

For the Asset Management subindustry, Atlas'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.


Atlas's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Atlas's Beneish M-Score distribution charts can be found below:

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



Atlas 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 Atlas 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 * 1.087+0.528 * 0.935+0.404 * 0.9206+0.892 * 1.0169+0.115 * 1.139
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0451+4.679 * -0.041244-0.327 * 0.9891
=-2.63

* 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 (Jun23) TTM:Last Year (Jun22) TTM:
Total Receivables was $116 Mil.
Revenue was 437.1 + 417.2 + 436.4 + 439.6 = $1,730 Mil.
Gross Profit was 437.1 + 328.8 + 340.3 + 355.3 = $1,462 Mil.
Total Current Assets was $629 Mil.
Total Assets was $12,179 Mil.
Property, Plant and Equipment(Net PPE) was $10,129 Mil.
Depreciation, Depletion and Amortization(DDA) was $385 Mil.
Selling, General, & Admin. Expense(SGA) was $250 Mil.
Total Current Liabilities was $1,097 Mil.
Long-Term Debt & Capital Lease Obligation was $6,236 Mil.
Net Income was 114.4 + 58.8 + 127.2 + 185.7 = $486 Mil.
Non Operating Income was 13.7 + -15.7 + 2.3 + 52.3 = $53 Mil.
Cash Flow from Operations was 255.1 + 227.9 + 227 + 225.8 = $936 Mil.
Total Receivables was $105 Mil.
Revenue was 413.3 + 408.1 + 428.2 + 451.9 = $1,702 Mil.
Gross Profit was 326.9 + 321.5 + 330.4 + 365 = $1,344 Mil.
Total Current Assets was $706 Mil.
Total Assets was $10,807 Mil.
Property, Plant and Equipment(Net PPE) was $8,731 Mil.
Depreciation, Depletion and Amortization(DDA) was $380 Mil.
Selling, General, & Admin. Expense(SGA) was $236 Mil.
Total Current Liabilities was $1,284 Mil.
Long-Term Debt & Capital Lease Obligation was $5,294 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)
=(116.4 / 1730.3) / (105.3 / 1701.5)
=0.067272 / 0.061887
=1.087

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)
=(1343.8 / 1701.5) / (1461.5 / 1730.3)
=0.789774 / 0.844651
=0.935

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 - (628.5 + 10129) / 12178.7) / (1 - (706.4 + 8730.9) / 10807.2)
=0.116696 / 0.126758
=0.9206

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
=1730.3 / 1701.5
=1.0169

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))
=(379.8 / (379.8 + 8730.9)) / (384.8 / (384.8 + 10129))
=0.041687 / 0.0366
=1.139

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)
=(250.4 / 1730.3) / (235.6 / 1701.5)
=0.144715 / 0.138466
=1.0451

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)
=((6235.6 + 1096.7) / 12178.7) / ((5294.2 + 1284.2) / 10807.2)
=0.602059 / 0.608705
=0.9891

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
=(486.1 - 52.6 - 935.8) / 12178.7
=-0.041244

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.

Atlas has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.


Atlas (LTS:0EAL) Business Description

Traded in Other Exchanges
Address
23 Berkeley Square, London, GBR, W1J 6HE
Atlas Corp is a global asset manager that owns and operates the businesses in which it invests while focusing on deploying capital across multiple verticals to create sustainable value and quality growth opportunities for its shareholders. The company has two business segments: Containership leasing and Mobile power generation. The containership leasing segment owns and operates a fleet of containerships that are chartered primarily pursuant to long-term, fixed-rate charters. The mobile power generation segment owns and operates a fleet of power generation assets, including gas turbines and other equipment, and provides power solutions to customers. Majority of revenue is generated from The Containership Leasing segment.

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