Arctic Bioscience AS (OSL:ABS) Beneish M-Score : -2.25 (As of Mar. 26, 2025)

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What is Arctic Bioscience AS 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OSL:ABS' s Beneish M-Score Range Over the Past 10 Years
Min: -2.59 Med: -2.2 Max: -1.93
Current: -2.25

During the past 6 years, the highest Beneish M-Score of Arctic Bioscience AS was -1.93. The lowest was -2.59. And the median was -2.20.

Arctic Bioscience AS Beneish M-Score Historical Data

The historical data trend for Arctic Bioscience AS'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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Arctic Bioscience AS Beneish M-Score Chart

Arctic Bioscience AS Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.93

-2.59

-2.14

-2.25

Arctic Bioscience AS Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial						-	-2.14	-	-2.25	-

Competitive Comparison of Arctic Bioscience AS's Beneish M-Score

For the Biotechnology subindustry, Arctic Bioscience AS'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.

Arctic Bioscience AS's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Arctic Bioscience AS's Beneish M-Score distribution charts can be found below:

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

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Arctic Bioscience AS 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 Arctic Bioscience AS 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 * 1.1265

0.528 * 1.1734

0.404 * 1.4342

0.892 * 0.9848

0.115 * 0.8464

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.017415

0.327 * 1.1258

-2.25

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was kr20.76 Mil.
Revenue was kr33.75 Mil.
Gross Profit was kr9.77 Mil.
Total Current Assets was kr133.16 Mil.
Total Assets was kr300.25 Mil.
Property, Plant and Equipment(Net PPE) was kr26.44 Mil.
Depreciation, Depletion and Amortization(DDA) was kr5.38 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr39.65 Mil.
Long-Term Debt & Capital Lease Obligation was kr2.05 Mil.
Net Income was kr-45.52 Mil.
Gross Profit was kr0.00 Mil.
Cash Flow from Operations was kr-40.29 Mil.

Total Receivables was kr18.71 Mil.
Revenue was kr34.27 Mil.
Gross Profit was kr11.65 Mil.
Total Current Assets was kr198.33 Mil.
Total Assets was kr327.70 Mil.
Property, Plant and Equipment(Net PPE) was kr22.33 Mil.
Depreciation, Depletion and Amortization(DDA) was kr3.73 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr40.42 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)
	=	(20.759 / 33.75)	/	(18.713 / 34.272)
	=	0.615081	/	0.546014
	=	1.1265

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)
	=	(11.646 / 34.272)	/	(9.774 / 33.75)
	=	0.339811	/	0.2896
	=	1.1734

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 - (133.155 + 26.438) / 300.252)	/	(1 - (198.327 + 22.332) / 327.702)
	=	0.46847	/	0.326647
	=	1.4342

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
	=	33.75	/	34.272
	=	0.9848

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))
	=	(3.731 / (3.731 + 22.332))	/	(5.382 / (5.382 + 26.438))
	=	0.143153	/	0.169139
	=	0.8464

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 / 33.75)	/	(0 / 34.272)
	=	0	/	0
	=	1

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)
	=	((2.049 + 39.646) / 300.252)	/	((0 + 40.422) / 327.702)
	=	0.138867	/	0.12335
	=	1.1258

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
	=	(-45.515 - 0	-	-40.286)	/	300.252
	=	-0.017415

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.

Arctic Bioscience AS has a M-score of -2.25 suggests that the company is unlikely to be a manipulator.

Arctic Bioscience AS Beneish M-Score Related Terms

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Arctic Bioscience AS Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Arctic Bioscience AS (OSL:ABS) » Definitions » Beneish M-Score

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Traded in Other Exchanges

9TD:Germany

Address

Industrivegen 42, Orsta, NOR, 6155

Website

https://www.arctic-bioscience.com

Arctic Bioscience AS is a Norwegian biotechnology company. The company is focused on developing products and solutions based on bioactive marine compounds. The product portfolio includes nutraceuticals and pharmaceuticals. It is currently developing a novel, cost-efficient oral treatment (HRO350) for mild-to-moderate psoriasis. Its nutraceutical products are sold globally to both B2C and B2B under the Romega brand. The company operates in Norway, Europe, Australia and APAC.

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