Banxa Holdings (Banxa Holdings) Beneish M-Score : 2.33 (As of May. 11, 2024)

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What is Banxa Holdings 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.

Warning Sign:

Beneish M-Score 2.33 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BNXAF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.41 Med: -1.12 Max: 4.93
Current: 2.33

During the past 4 years, the highest Beneish M-Score of Banxa Holdings was 4.93. The lowest was -4.41. And the median was -1.12.

Banxa Holdings Beneish M-Score Historical Data

The historical data trend for Banxa Holdings'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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Banxa Holdings Beneish M-Score Chart

Banxa Holdings Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

-4.41

-1.15

Banxa Holdings Quarterly Data
	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												-1.12	-2.14	-1.15	-1.18	2.33

Competitive Comparison of Banxa Holdings's Beneish M-Score

For the Information Technology Services subindustry, Banxa Holdings'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.

Banxa Holdings's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Banxa Holdings's Beneish M-Score distribution charts can be found below:

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

Banxa Holdings 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 Banxa Holdings 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 * 0.3848

0.528 * 2.1642

0.404 * 2.5569

0.892 * 3.6551

0.115 * 0.8035

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.2135

4.679 * 0.39598

0.327 * 1.9429

2.22

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $7.3 Mil.
Revenue was 51.088 + 54.983 + 15.156 + 16.101 = $137.3 Mil.
Gross Profit was 4.534 + 4.256 + 2.91 + 3.485 = $15.2 Mil.
Total Current Assets was $9.0 Mil.
Total Assets was $11.2 Mil.
Property, Plant and Equipment(Net PPE) was $0.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $15.9 Mil.
Total Current Liabilities was $10.4 Mil.
Long-Term Debt & Capital Lease Obligation was $4.4 Mil.
Net Income was -0.6 + -1.379 + -4.711 + 0.407 = $-6.3 Mil.
Non Operating Income was 0.048 + -0.506 + -1.209 + 0.202 = $-1.5 Mil.
Cash Flow from Operations was -2.026 + -4.292 + -0.54 + -2.393 = $-9.3 Mil.

Total Receivables was $5.2 Mil.
Revenue was 13.706 + 8.761 + 2.946 + 12.159 = $37.6 Mil.
Gross Profit was 3.286 + 1.871 + -1.006 + 4.84 = $9.0 Mil.
Total Current Assets was $10.9 Mil.
Total Assets was $12.4 Mil.
Property, Plant and Equipment(Net PPE) was $0.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $20.4 Mil.
Total Current Liabilities was $7.5 Mil.
Long-Term Debt & Capital Lease Obligation was $1.0 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)
	=	(7.343 / 137.328)	/	(5.221 / 37.572)
	=	0.053471	/	0.13896
	=	0.3848

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)
	=	(8.991 / 37.572)	/	(15.185 / 137.328)
	=	0.239301	/	0.110575
	=	2.1642

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 - (8.97 + 0.426) / 11.195)	/	(1 - (10.91 + 0.706) / 12.395)
	=	0.160697	/	0.062848
	=	2.5569

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
	=	137.328	/	37.572
	=	3.6551

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))
	=	(0.326 / (0.326 + 0.706))	/	(0.276 / (0.276 + 0.426))
	=	0.315891	/	0.393162
	=	0.8035

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)
	=	(15.879 / 137.328)	/	(20.35 / 37.572)
	=	0.115628	/	0.541627
	=	0.2135

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)
	=	((4.376 + 10.431) / 11.195)	/	((0.984 + 7.454) / 12.395)
	=	1.322644	/	0.680758
	=	1.9429

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
	=	(-6.283 - -1.465	-	-9.251)	/	11.195
	=	0.39598

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.

Banxa Holdings has a M-score of 2.22 signals that the company is likely to be a manipulator.

Banxa Holdings Beneish M-Score Related Terms

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Banxa Holdings (Banxa Holdings) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

AC00:Germany BNXA:Canada

Address

2-6 Gwynne Street, Level 2, Melbourne, VIC, AUS, 3121

Website

https://www.banxa.com

Banxa Holdings Inc is a payments service provider for the digital asset space. It offers a cryptocurrency gateway platform to other businesses in the industry. The company's goal is to onboard the general public to digital currency by building a fully compliant payment infrastructure that enables simple and secure conversion of fiat currency to digital currency. Geographically, it operates in Australia, North America and Europe and derives a majority of its revenue from Europe.