ZPTA (Zapata Computing Holdings) Beneish M-Score : -0.58 (As of Dec. 15, 2024)

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What is Zapata Computing 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 -0.58 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ZPTA' s Beneish M-Score Range Over the Past 10 Years
Min: -0.58 Med: -0.58 Max: -0.58
Current: -0.58

During the past 3 years, the highest Beneish M-Score of Zapata Computing Holdings was -0.58. The lowest was -0.58. And the median was -0.58.

Zapata Computing Holdings Beneish M-Score Historical Data

The historical data trend for Zapata Computing 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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Zapata Computing Holdings Beneish M-Score Chart

Zapata Computing Holdings Annual Data

Trend

Dec21

Dec22

Dec23

Beneish M-Score

-0.58

Zapata Computing Holdings Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial			-	-	-	-0.58	-

Competitive Comparison of Zapata Computing Holdings's Beneish M-Score

For the Software - Infrastructure subindustry, Zapata Computing 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.

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

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

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

Zapata Computing 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 Zapata Computing 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 * 1.2345

0.528 * 1.6296

0.404 * 12.4255

0.892 * 1.1001

0.115 * 0.5581

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7188

4.679 * -0.411305

0.327 * 5.3771

-0.58

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1.94 Mil.
Revenue was $5.68 Mil.
Gross Profit was $1.10 Mil.
Total Current Assets was $5.59 Mil.
Total Assets was $8.07 Mil.
Property, Plant and Equipment(Net PPE) was $0.39 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.16 Mil.
Selling, General, & Admin. Expense(SGA) was $13.29 Mil.
Total Current Liabilities was $9.39 Mil.
Long-Term Debt & Capital Lease Obligation was $8.90 Mil.
Net Income was $-29.73 Mil.
Gross Profit was $-11.65 Mil.
Cash Flow from Operations was $-14.76 Mil.

Total Receivables was $1.43 Mil.
Revenue was $5.17 Mil.
Gross Profit was $1.63 Mil.
Total Current Assets was $12.27 Mil.
Total Assets was $13.45 Mil.
Property, Plant and Equipment(Net PPE) was $0.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.18 Mil.
Selling, General, & Admin. Expense(SGA) was $16.81 Mil.
Total Current Liabilities was $5.42 Mil.
Long-Term Debt & Capital Lease Obligation was $0.25 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)
	=	(1.938 / 5.683)	/	(1.427 / 5.166)
	=	0.341017	/	0.276229
	=	1.2345

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)
	=	(1.631 / 5.166)	/	(1.101 / 5.683)
	=	0.315718	/	0.193736
	=	1.6296

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 - (5.593 + 0.394) / 8.067)	/	(1 - (12.269 + 0.897) / 13.445)
	=	0.257841	/	0.020751
	=	12.4255

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
	=	5.683	/	5.166
	=	1.1001

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))
	=	(0.176 / (0.176 + 0.897))	/	(0.164 / (0.164 + 0.394))
	=	0.164026	/	0.293907
	=	0.5581

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)
	=	(13.294 / 5.683)	/	(16.813 / 5.166)
	=	2.339257	/	3.254549
	=	0.7188

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)
	=	((8.9 + 9.393) / 8.067)	/	((0.252 + 5.418) / 13.445)
	=	2.267634	/	0.421718
	=	5.3771

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
	=	(-29.734 - -11.653	-	-14.763)	/	8.067
	=	-0.411305

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.

Zapata Computing Holdings has a M-score of -0.58 signals that the company is likely to be a manipulator.

Zapata Computing Holdings Beneish M-Score Related Terms

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Zapata Computing Holdings Business Description

Industry

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Traded in Other Exchanges

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Address

100 Federal Street, Floor 20, Boston, MA, USA, 02110

Website

https://www.zapata.ai

Zapata Computing Holdings Inc is an Industrial Generative AI software company that develops generative AI applications and provides accompanying services to solve complex industrial problems. Its computational approaches leverage the statistical advantages of math based on quantum physics. Its primary target customers are enterprise organizations. It offers subscription-based solutions that combine software and services to develop custom Industrial Generative AI applications designed to resolve its enterprise customers' specific problems.