SRCO (Sparta Commercial Services) Beneish M-Score : -6.00 (As of Dec. 12, 2024)

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What is Sparta Commercial Services 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 -6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SRCO' s Beneish M-Score Range Over the Past 10 Years
Min: -472.11 Med: -83.15 Max: 428.79
Current: -6

During the past 13 years, the highest Beneish M-Score of Sparta Commercial Services was 428.79. The lowest was -472.11. And the median was -83.15.

Sparta Commercial Services Beneish M-Score Historical Data

The historical data trend for Sparta Commercial Services'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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Sparta Commercial Services Beneish M-Score Chart

Sparta Commercial Services Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

Beneish M-Score

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-142.12

-180.66

-40.11

428.79

-13.13

Sparta Commercial Services Quarterly Data
	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
Beneish M-Score	Get a 7-Day Free Trial															267.76	348.80	121.62	-13.13	-6.00

Competitive Comparison of Sparta Commercial Services's Beneish M-Score

For the Software - Application subindustry, Sparta Commercial Services'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.

Sparta Commercial Services's Beneish M-Score Distribution in the Software Industry

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

* The bar in red indicates where Sparta Commercial Services's Beneish M-Score falls into.

Sparta Commercial Services 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 Sparta Commercial Services 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

0.528 * 1.0702

0.404 * 0.0596

0.892 * 0.688

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0844

4.679 * -0.682927

0.327 * 0.0615

-6.00

This Year (Jul24) TTM:

Last Year (Jul23) TTM:

Total Receivables was $0.22 Mil.
Revenue was 0.042 + 0.041 + 0.037 + 0.052 = $0.17 Mil.
Gross Profit was 0.033 + 0.035 + 0.029 + 0.038 = $0.14 Mil.
Total Current Assets was $0.36 Mil.
Total Assets was $0.37 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.43 Mil.
Total Current Liabilities was $9.71 Mil.
Long-Term Debt & Capital Lease Obligation was $0.74 Mil.
Net Income was -0.963 + 0.031 + -0.1 + -0.364 = $-1.40 Mil.
Non Operating Income was -0.376 + 0.324 + 0.272 + 0.049 = $0.27 Mil.
Cash Flow from Operations was -0.449 + -0.715 + -0.059 + -0.19 = $-1.41 Mil.

Total Receivables was $0.00 Mil.
Revenue was 0.062 + 0.068 + 0.064 + 0.056 = $0.25 Mil.
Gross Profit was 0.053 + 0.057 + 0.055 + 0.045 = $0.21 Mil.
Total Current Assets was $0.01 Mil.
Total Assets was $0.02 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.58 Mil.
Total Current Liabilities was $9.63 Mil.
Long-Term Debt & Capital Lease Obligation was $0.50 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)
	=	(0.219 / 0.172)	/	(0 / 0.25)
	=	1.273256	/	0
	=	1

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)
	=	(0.21 / 0.25)	/	(0.135 / 0.172)
	=	0.84	/	0.784884
	=	1.0702

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 - (0.36 + 0) / 0.369)	/	(1 - (0.013 + 0) / 0.022)
	=	0.02439	/	0.409091
	=	0.0596

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
	=	0.172	/	0.25
	=	0.688

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 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

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)
	=	(0.429 / 0.172)	/	(0.575 / 0.25)
	=	2.494186	/	2.3
	=	1.0844

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)
	=	((0.735 + 9.71) / 0.369)	/	((0.495 + 9.633) / 0.022)
	=	28.306233	/	460.363636
	=	0.0615

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
	=	(-1.396 - 0.269	-	-1.413)	/	0.369
	=	-0.682927

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.

Sparta Commercial Services has a M-score of -6.00 suggests that the company is unlikely to be a manipulator.

Sparta Commercial Services Beneish M-Score Related Terms

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Sparta Commercial Services Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sparta Commercial Services Inc (OTCPK:SRCO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

555 Fifth Avenue, 14th Floor, New York, NY, USA, 10017

Website

https://www.spartacommercial.com

Sparta Commercial Services Inc through its subsidiaries offers technology products and services. The company develops, manages, and markets its business mobile applications for smartphones and tablets. Its mobile application offerings range from racetracks, private clubs, country clubs, restaurants, and grocery stores. The company serves small and medium-size businesses under the tradename iMobileApp. It generates maximum revenue from the application source.

Executives

Jeffrey Buchanan Bean	director	325 COTTON AVENUE, MACON GA 31201
Anthony L Havens	director, officer: CEO	555 FIFTH AVE., 14TH FLOOR, NEW YORK NY 10017
Sandra L Ahman	director, officer: VP	555 FIFTH AVE, 14TH FLOOR, NEW YORK NY 10017
Kristian Srb	director, 10 percent owner	555 FIFTH AVE., 14TH FLOOR, NEW YORK NY 10017
Richard P Trotter	officer: COO	370 LEXINGTON AVE., SUITE 1901, NEW YORK NY 10017
Anthony William Adler	officer: EVP	462 SEVENTH AVENUE, 20TH FLOOR, NEW YORK NY 10018
Leo Long	other: 8.85% OWNER	9109 LORIET BLVD., LENEXA KS 66219
Glenn Little	other: 5% Owner	211 WEST WALL ST, MIDLAND TX 70701
Michael J Mele	officer: Chief Financial Officer	462 SEVENTH AVE, 20TH FL., C/O SPARTA COMMERCIAL SERVICES, INC., NEW YORK NY 10018
Danny Lanjewar	officer: Chief Financial Officer