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Alto Ingredients (Alto Ingredients) Beneish M-Score : -4.60 (As of May. 07, 2024)


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What is Alto Ingredients 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 -4.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ALTO' s Beneish M-Score Range Over the Past 10 Years
Min: -5.1   Med: -2.99   Max: 3.31
Current: -4.6

During the past 13 years, the highest Beneish M-Score of Alto Ingredients was 3.31. The lowest was -5.10. And the median was -2.99.


Alto Ingredients Beneish M-Score Historical Data

The historical data trend for Alto Ingredients'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.

* Premium members only.

Alto Ingredients Beneish M-Score Chart

Alto Ingredients Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.64 -3.97 -1.53 -5.10 -4.60

Alto Ingredients Quarterly Data
Mar19 Jun19 Sep19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.10 -4.39 -4.64 -9.36 -4.60

Competitive Comparison of Alto Ingredients's Beneish M-Score

For the Specialty Chemicals subindustry, Alto Ingredients'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.


Alto Ingredients's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Alto Ingredients's Beneish M-Score distribution charts can be found below:

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



Alto Ingredients 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 Alto Ingredients for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9342+0.528 * -1.6116+0.404 * 0.7018+0.892 * 0.9156+0.115 * 1.1308
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1296+4.679 * -0.096306-0.327 * 1.0855
=-4.60

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $59 Mil.
Revenue was 273.625 + 318.127 + 317.297 + 313.891 = $1,223 Mil.
Gross Profit was -2.525 + 4.161 + 17.181 + -3.164 = $16 Mil.
Total Current Assets was $169 Mil.
Total Assets was $454 Mil.
Property, Plant and Equipment(Net PPE) was $271 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General, & Admin. Expense(SGA) was $33 Mil.
Total Current Liabilities was $65 Mil.
Long-Term Debt & Capital Lease Obligation was $101 Mil.
Net Income was -18.945 + -3.489 + 7.595 + -13.166 = $-28 Mil.
Non Operating Income was -5.814 + 0.026 + 0.059 + -0.555 = $-6 Mil.
Cash Flow from Operations was 11.796 + 23.133 + 10.443 + -23.347 = $22 Mil.
Total Receivables was $69 Mil.
Revenue was 328.437 + 336.877 + 362.189 + 308.118 = $1,336 Mil.
Gross Profit was -21.328 + -19.839 + 8.844 + 4.773 = $-28 Mil.
Total Current Assets was $199 Mil.
Total Assets was $478 Mil.
Property, Plant and Equipment(Net PPE) was $258 Mil.
Depreciation, Depletion and Amortization(DDA) was $25 Mil.
Selling, General, & Admin. Expense(SGA) was $32 Mil.
Total Current Liabilities was $78 Mil.
Long-Term Debt & Capital Lease Obligation was $83 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)
=(58.729 / 1222.94) / (68.655 / 1335.621)
=0.048023 / 0.051403
=0.9342

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)
=(-27.55 / 1335.621) / (15.653 / 1222.94)
=-0.020627 / 0.012799
=-1.6116

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 - (168.77 + 271.345) / 454.241) / (1 - (199.121 + 258.006) / 478.321)
=0.031098 / 0.044309
=0.7018

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
=1222.94 / 1335.621
=0.9156

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))
=(25.095 / (25.095 + 258.006)) / (23.08 / (23.08 + 271.345))
=0.088643 / 0.07839
=1.1308

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)
=(32.664 / 1222.94) / (31.579 / 1335.621)
=0.026709 / 0.023644
=1.1296

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)
=((101.126 + 65.288) / 454.241) / ((83.418 + 78.017) / 478.321)
=0.366356 / 0.337503
=1.0855

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
=(-28.005 - -6.284 - 22.025) / 454.241
=-0.096306

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.

Alto Ingredients has a M-score of -4.60 suggests that the company is unlikely to be a manipulator.


Alto Ingredients Beneish M-Score Related Terms

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Alto Ingredients (Alto Ingredients) Business Description

Traded in Other Exchanges
Address
1300 South Second Street, Pekin, IL, USA, 61554
Alto Ingredients Inc is a producer of specialty alcohols and essential ingredients. The company serves five markets: Health, Home and Beauty, Food and Beverage, Essential Ingredients, and Renewable Fuels. Its customers include major food and beverage companies and consumer products manufacturers and distributors. The company operates under three segments: Marketing and distribution, Pekin Campus production, and Other production. The Marketing and distribution segment participates in marketing and merchant trading for alcohols and essential ingredients; Pekin Campus produces and sells products produced at the company's Pekin, Illinois, campus, and about half of the firm's revenue flows from this segment. Other production makes and sells from the company's other production facilities.
Executives
Robert R. Olander officer: Chief Financial Officer 1300 SOUTH SECOND STREET, PEKIN IL 61554
Gilbert E Nathan director C/O EMERGENT CAPITAL, INC., 5355 TOWN CENTER ROAD, SUITE 701, BOCA RATON FL 33486
Auste M Graham officer: Gen. Counsel, VP & Secy C/O ALTO INGREDIENTS, INC., 1300 SOUTH SECOND STREET, PEKIN IL 61554
Maria G Gray director C/O ALTO INGREDIENTS, INC., 1300 SOUTH SECOND STREET, PEKIN IL 61554
Bryon T Mcgregor officer: Interim CFO 400 CAPITAL MALL, #2060, SACRAMENTO CA 95814
Christopher W Wright officer: VP, General Counsel, & Secy C/O PACIFIC ETHANOL, INC., 5711 N. WEST AVENUE, FRESNO CA 93711
William L Jones 10 percent owner 5711 N. WEST AVENUE, FRESNO CA 93711
James R Sneed officer: VP of Ethanol Supply & Trading AVENTINE RENEWABLE ENERGY HOLDINGS, INC., 1300 SOUTH SECOND STREET, PEKIN IL 61555
Neil M Koehler director, officer: CEO, President PACIFIC ETHANOL, INC., 5711 N. WEST AVENUE, FRESNO CA 93711
Douglas L Kieta director 17831 SHADOW VALLEY DRIVE, SPRING TX 77379
Winston Mar officer: Chief Restructuring Officer 46 PENINSULA CENTER #188, ROLLING HILLS ESTATES CA 90274
Dianne S. Nury director C/O PACIFIC ETHANOL INC., 400 CAPITOL MALL, SUITE 2060, SACRAMENTO CA 95814
Michael D Kandris director 400 CAPITAL MALL, #2060, SACRAMENTO CA 95814
Paul Koehler officer: VP of Corporate Development C/O TOWERSTREAM CORPORATION, 55 HAMMARLUND WAY, MIDDLETOWN RI 02842
Larry D Layne director C/O PACIFIC ETHANOL, INC., 400 CAPITOL MALL, #2060, SACRAMENTO CA 95814

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