Australian Clinical Labs (ASX:ACL) Beneish M-Score : -3.66 (As of May. 17, 2024)

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What is Australian Clinical Labs 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 -3.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:ACL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.66 Med: -3.18 Max: -2.69
Current: -3.66

During the past 4 years, the highest Beneish M-Score of Australian Clinical Labs was -2.69. The lowest was -3.66. And the median was -3.18.

Australian Clinical Labs Beneish M-Score Historical Data

The historical data trend for Australian Clinical Labs'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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Australian Clinical Labs Beneish M-Score Chart

Australian Clinical Labs Annual Data

Trend

Dec20

Jun21

Jun22

Jun23

Beneish M-Score

-2.69

-3.66

Australian Clinical Labs Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-	-2.69	-	-3.66	-

Competitive Comparison of Australian Clinical Labs's Beneish M-Score

For the Diagnostics & Research subindustry, Australian Clinical Labs'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.

Australian Clinical Labs's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Australian Clinical Labs's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Australian Clinical Labs's Beneish M-Score falls into.

Australian Clinical Labs 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 Australian Clinical Labs 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 * 1.1564

0.528 * 0.9662

0.404 * 1.082

0.892 * 0.6996

0.115 * 0.8537

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3538

4.679 * -0.203495

0.327 * 1.1136

-3.66

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was A$73.7 Mil.
Revenue was A$692.1 Mil.
Gross Profit was A$566.0 Mil.
Total Current Assets was A$116.0 Mil.
Total Assets was A$578.9 Mil.
Property, Plant and Equipment(Net PPE) was A$288.4 Mil.
Depreciation, Depletion and Amortization(DDA) was A$122.8 Mil.
Selling, General, & Admin. Expense(SGA) was A$297.4 Mil.
Total Current Liabilities was A$187.9 Mil.
Long-Term Debt & Capital Lease Obligation was A$215.2 Mil.
Net Income was A$35.9 Mil.
Gross Profit was A$10.0 Mil.
Cash Flow from Operations was A$143.7 Mil.

Total Receivables was A$91.1 Mil.
Revenue was A$989.3 Mil.
Gross Profit was A$781.7 Mil.
Total Current Assets was A$142.9 Mil.
Total Assets was A$628.0 Mil.
Property, Plant and Equipment(Net PPE) was A$310.2 Mil.
Depreciation, Depletion and Amortization(DDA) was A$106.1 Mil.
Selling, General, & Admin. Expense(SGA) was A$314.0 Mil.
Total Current Liabilities was A$225.2 Mil.
Long-Term Debt & Capital Lease Obligation was A$167.6 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)
	=	(73.71 / 692.103)	/	(91.114 / 989.298)
	=	0.106501	/	0.0921
	=	1.1564

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)
	=	(781.706 / 989.298)	/	(566.02 / 692.103)
	=	0.790162	/	0.817826
	=	0.9662

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 - (115.959 + 288.438) / 578.913)	/	(1 - (142.871 + 310.2) / 628.042)
	=	0.301455	/	0.278598
	=	1.082

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
	=	692.103	/	989.298
	=	0.6996

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))
	=	(106.096 / (106.096 + 310.2))	/	(122.755 / (122.755 + 288.438))
	=	0.254857	/	0.298534
	=	0.8537

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)
	=	(297.394 / 692.103)	/	(314.003 / 989.298)
	=	0.429696	/	0.3174
	=	1.3538

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)
	=	((215.234 + 187.925) / 578.913)	/	((167.61 + 225.163) / 628.042)
	=	0.696407	/	0.625393
	=	1.1136

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
	=	(35.901 - 10.026	-	143.681)	/	578.913
	=	-0.203495

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.

Australian Clinical Labs has a M-score of -3.66 suggests that the company is unlikely to be a manipulator.

Australian Clinical Labs Beneish M-Score Related Terms

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Australian Clinical Labs (ASX:ACL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Australian Clinical Labs Ltd (ASX:ACL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1868-1892 Dandenong Road, Clayton, VIC, AUS, 3168

Website

https://www.clinicallabs.com.au

Australian Clinical Labs, or ACL, is Australia's third-largest private pathology provider. ACL earns almost its entire group revenue from pathology services in Australia, which are mostly earned via the publicly funded health Medicare system. ACL is well-established in the states of Western Australia, South Australia, Victoria and the Northern Territory.

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