Desert Control AS (OSL:DSRT) Beneish M-Score : -4.22 (As of May. 27, 2024)

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What is Desert Control 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 -4.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OSL:DSRT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.22 Med: -3.85 Max: -3.47
Current: -4.22

During the past 5 years, the highest Beneish M-Score of Desert Control AS was -3.47. The lowest was -4.22. And the median was -3.85.

Desert Control AS Beneish M-Score Historical Data

The historical data trend for Desert Control 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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Desert Control AS Beneish M-Score Chart

Desert Control AS Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-3.47

-4.22

Desert Control AS Quarterly Data
	Dec19	Jun20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial										-3.47	-1.36	-1.36	-2.90	-4.22

Competitive Comparison of Desert Control AS's Beneish M-Score

For the Agricultural Inputs subindustry, Desert Control 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.

Desert Control AS's Beneish M-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Desert Control AS's Beneish M-Score distribution charts can be found below:

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

Desert Control 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 Desert Control 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 * 0.7355

0.528 * -0.2709

0.404 * 0.0001

0.892 * 0.94

0.115 * 0.4902

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.11279

0.327 * 0.3238

-4.22

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was kr5.19 Mil.
Revenue was 0.005 + 0.013 + 0.018 + 1.891 = kr1.93 Mil.
Gross Profit was 0.005 + 0.013 + 0.182 + 1.438 = kr1.64 Mil.
Total Current Assets was kr125.03 Mil.
Total Assets was kr133.51 Mil.
Property, Plant and Equipment(Net PPE) was kr8.48 Mil.
Depreciation, Depletion and Amortization(DDA) was kr6.49 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr4.45 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 Mil.
Net Income was -8.411 + -19.331 + -18.236 + -19.296 = kr-65.27 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.00 Mil.
Cash Flow from Operations was 4.608 + -16.891 + -15.477 + -22.455 = kr-50.22 Mil.

Total Receivables was kr7.51 Mil.
Revenue was 0.997 + 0 + 0.458 + 0.595 = kr2.05 Mil.
Gross Profit was 0.227 + -0.01 + -0.376 + -0.313 = kr-0.47 Mil.
Total Current Assets was kr89.42 Mil.
Total Assets was kr119.27 Mil.
Property, Plant and Equipment(Net PPE) was kr22.64 Mil.
Depreciation, Depletion and Amortization(DDA) was kr6.11 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr11.85 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.43 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)
	=	(5.189 / 1.927)	/	(7.505 / 2.05)
	=	2.692787	/	3.660976
	=	0.7355

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)
	=	(-0.472 / 2.05)	/	(1.638 / 1.927)
	=	-0.230244	/	0.850026
	=	-0.2709

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 - (125.03 + 8.483) / 133.514)	/	(1 - (89.415 + 22.635) / 119.272)
	=	7.0E-6	/	0.060551
	=	0.0001

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
	=	1.927	/	2.05
	=	0.94

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))
	=	(6.107 / (6.107 + 22.635))	/	(6.491 / (6.491 + 8.483))
	=	0.212477	/	0.433485
	=	0.4902

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 / 1.927)	/	(0 / 2.05)
	=	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)
	=	((0 + 4.448) / 133.514)	/	((0.425 + 11.846) / 119.272)
	=	0.033315	/	0.102882
	=	0.3238

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
	=	(-65.274 - 0	-	-50.215)	/	133.514
	=	-0.11279

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.

Desert Control AS has a M-score of -4.22 suggests that the company is unlikely to be a manipulator.

Desert Control AS Beneish M-Score Related Terms

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Desert Control AS (OSL:DSRT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Desert Control AS (OSL:DSRT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

8KT:Germany

Address

Grenseveien 21, Sandnes, NOR, 4313

Website

https://www.desertcontrol.com

Desert Control AS is a climate technology company specialized in reclaiming degraded soil and turning desert sand into fertile soil. The patented product LNC (Liquid Natural Clay) is a liquid clay compound that enables sand and degraded soil to retain water and nutrients.

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