Avsalt Group AB (NGM:AVSALT) Beneish M-Score : -7.44 (As of Jan. 19, 2025)

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What is Avsalt Group AB 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 -7.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NGM:AVSALT' s Beneish M-Score Range Over the Past 10 Years
Min: -7.44 Med: -1.53 Max: 0.99
Current: -7.44

During the past 4 years, the highest Beneish M-Score of Avsalt Group AB was 0.99. The lowest was -7.44. And the median was -1.53.

Avsalt Group AB Beneish M-Score Historical Data

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

Avsalt Group AB Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-3.19

-0.39

Avsalt Group AB Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Jun24
Beneish M-Score	Get a 7-Day Free Trial											0.06	-0.39	-2.66	-2.92	-7.44

Competitive Comparison of Avsalt Group AB's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Avsalt Group AB'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.

Avsalt Group AB's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Avsalt Group AB's Beneish M-Score distribution charts can be found below:

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

Avsalt Group AB 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 Avsalt Group AB 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 * 1.3442

0.528 * 1.1687

0.404 * 0.8204

0.892 * 0.6161

0.115 * 0.9663

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -1.124774

0.327 * 0.5613

-7.44

This Year (Jun24) TTM:

Last Year (Sep22) TTM:

Total Receivables was kr0.65 Mil.
Revenue was 0 + 0 + 0.189 + 0.124 = kr0.31 Mil.
Gross Profit was -0.353 + -0.963 + -0.977 + -1.156 = kr-3.45 Mil.
Total Current Assets was kr1.87 Mil.
Total Assets was kr6.63 Mil.
Property, Plant and Equipment(Net PPE) was kr0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was kr1.64 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr3.25 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 Mil.
Net Income was -5.182 + -1.347 + -2.555 + -3.02 = kr-12.10 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.00 Mil.
Cash Flow from Operations was -0.402 + -2.065 + -2.182 + 0 = kr-4.65 Mil.

Total Receivables was kr0.79 Mil.
Revenue was 0.088 + 0.138 + 0.184 + 0.098 = kr0.51 Mil.
Gross Profit was -1.362 + -1.765 + -1.419 + -1.996 = kr-6.54 Mil.
Total Current Assets was kr2.10 Mil.
Total Assets was kr17.31 Mil.
Property, Plant and Equipment(Net PPE) was kr0.06 Mil.
Depreciation, Depletion and Amortization(DDA) was kr1.58 Mil.
Selling, General, & Admin. Expense(SGA) was kr6.02 Mil.
Total Current Liabilities was kr15.13 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 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)
	=	(0.651 / 0.313)	/	(0.786 / 0.508)
	=	2.079872	/	1.547244
	=	1.3442

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)
	=	(-6.542 / 0.508)	/	(-3.449 / 0.313)
	=	-12.877953	/	-11.019169
	=	1.1687

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 - (1.867 + 0) / 6.628)	/	(1 - (2.098 + 0.055) / 17.305)
	=	0.718316	/	0.875585
	=	0.8204

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
	=	0.313	/	0.508
	=	0.6161

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))
	=	(1.578 / (1.578 + 0.055))	/	(1.644 / (1.644 + 0))
	=	0.96632	/	1
	=	0.9663

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)
	=	(0 / 0.313)	/	(6.016 / 0.508)
	=	0	/	11.84252
	=	0

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 + 3.252) / 6.628)	/	((0 + 15.127) / 17.305)
	=	0.490646	/	0.87414
	=	0.5613

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
	=	(-12.104 - 0	-	-4.649)	/	6.628
	=	-1.124774

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.

Avsalt Group AB has a M-score of -7.44 suggests that the company is unlikely to be a manipulator.

Avsalt Group AB Beneish M-Score Related Terms

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Avsalt Group AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Avsalt Group AB (NGM:AVSALT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Open lab, Forskaren 3rd floor, Per Albin Hanssons vag 35, Malmo, SWE, 214 32

Website

https://www.avsalt.com

Avsalt Group AB is a Swedish environmental technology company that manufactures desalination machines to purify water. The company's patented technology entails minimal maintenance and low energy consumption and enables a continuous flow of water purified from ions and charged small molecules. The technology is based on thin carbon-based electrodes which, with alternating voltage application, remove ions and charged small molecules from the water.

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