Algonquin Power & Utilities (Algonquin Power & Utilities) Beneish M-Score : -2.65 (As of Apr. 25, 2024)

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What is Algonquin Power & Utilities 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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AQN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66 Med: -2.33 Max: -2
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Algonquin Power & Utilities was -2.00. The lowest was -2.66. And the median was -2.33.

Algonquin Power & Utilities Beneish M-Score Historical Data

The historical data trend for Algonquin Power & Utilities'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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Algonquin Power & Utilities Beneish M-Score Chart

Algonquin Power & Utilities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-2.37

-2.14

-2.26

-2.65

Algonquin Power & Utilities Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.26	-2.26	-2.41	-2.59	-2.65

Competitive Comparison of Algonquin Power & Utilities's Beneish M-Score

For the Utilities - Renewable subindustry, Algonquin Power & Utilities'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.

Algonquin Power & Utilities's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Algonquin Power & Utilities's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Algonquin Power & Utilities's Beneish M-Score falls into.

Algonquin Power & Utilities 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 Algonquin Power & Utilities 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 * 1.0173

0.528 * 0.9442

0.404 * 1.0016

0.892 * 0.9758

0.115 * 1.0214

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2397

4.679 * -0.013368

0.327 * 1.0658

-2.64

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $524 Mil.
Revenue was 666.779 + 624.738 + 627.871 + 778.627 = $2,698 Mil.
Gross Profit was 489.46 + 483.224 + 485.715 + 503.671 = $1,962 Mil.
Total Current Assets was $1,066 Mil.
Total Assets was $18,374 Mil.
Property, Plant and Equipment(Net PPE) was $12,517 Mil.
Depreciation, Depletion and Amortization(DDA) was $467 Mil.
Selling, General, & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $1,685 Mil.
Long-Term Debt & Capital Lease Obligation was $7,894 Mil.
Net Income was 186.315 + -174.549 + -253.231 + 270.139 = $29 Mil.
Non Operating Income was 134.933 + -309.005 + -359.551 + 178.933 = $-355 Mil.
Cash Flow from Operations was 200.73 + 132.627 + 261.404 + 34.218 = $629 Mil.

Total Receivables was $528 Mil.
Revenue was 747.95 + 664.44 + 619.385 + 733.237 = $2,765 Mil.
Gross Profit was 484.235 + 478.214 + 450.483 + 485.726 = $1,899 Mil.
Total Current Assets was $1,094 Mil.
Total Assets was $17,628 Mil.
Property, Plant and Equipment(Net PPE) was $11,945 Mil.
Depreciation, Depletion and Amortization(DDA) was $456 Mil.
Selling, General, & Admin. Expense(SGA) was $91 Mil.
Total Current Liabilities was $1,534 Mil.
Long-Term Debt & Capital Lease Obligation was $7,089 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)
	=	(524.194 / 2698.015)	/	(528.057 / 2765.012)
	=	0.194289	/	0.190978
	=	1.0173

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)
	=	(1898.658 / 2765.012)	/	(1962.07 / 2698.015)
	=	0.686673	/	0.727227
	=	0.9442

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 - (1066.345 + 12517.45) / 18373.961)	/	(1 - (1094.481 + 11944.885) / 17627.613)
	=	0.260704	/	0.260287
	=	1.0016

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
	=	2698.015	/	2765.012
	=	0.9758

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))
	=	(455.52 / (455.52 + 11944.885))	/	(466.996 / (466.996 + 12517.45))
	=	0.036734	/	0.035966
	=	1.0214

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)
	=	(110.298 / 2698.015)	/	(91.182 / 2765.012)
	=	0.040881	/	0.032977
	=	1.2397

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)
	=	((7894.174 + 1685.18) / 18373.961)	/	((7088.743 + 1534.46) / 17627.613)
	=	0.521355	/	0.489187
	=	1.0658

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
	=	(28.674 - -354.69	-	628.979)	/	18373.961
	=	-0.013368

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.

Algonquin Power & Utilities has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.

Algonquin Power & Utilities Beneish M-Score Related Terms

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Algonquin Power & Utilities (Algonquin Power & Utilities) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Algonquin Power & Utilities Corp (NYSE:AQN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AQNU:USA AGQPF.PFD:USA 751:Germany AQN.PR.D.PFD:Canada AQN.PR.A.PFD:Canada AQN:Canada

Address

354 Davis Road, Oakville, ON, CAN, L6J 2X1

Website

https://www.algonquinpower.com

Algonquin Power & Utilities Corp, a parent company of Liberty, is a diversified international generation, transmission, and distribution utility with over $16 billion of total assets. Through its two business groups, the Regulated Services Group and the Renewable Energy Group, AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN provides renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities.