Equity Story Group (ASX:EQS) Beneish M-Score : -2.86 (As of Jun. 05, 2024)

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What is Equity Story Group 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:EQS' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.86 Max: -2.86
Current: -2.86

During the past 3 years, the highest Beneish M-Score of Equity Story Group was -2.86. The lowest was -2.86. And the median was -2.86.

Equity Story Group Beneish M-Score Historical Data

The historical data trend for Equity Story Group'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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Equity Story Group Beneish M-Score Chart

Equity Story Group Annual Data

Trend

Jun21

Jun22

Jun23

Beneish M-Score

-2.86

Equity Story Group Semi-Annual Data
	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	-	-	-2.86	-

Competitive Comparison of Equity Story Group's Beneish M-Score

For the Capital Markets subindustry, Equity Story Group'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.

Equity Story Group's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Equity Story Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Equity Story Group's Beneish M-Score falls into.

Equity Story Group 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 Equity Story Group 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

0.404 * 3.1688

0.892 * 1.2822

0.115 * 0.1676

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8838

4.679 * -0.203058

0.327 * 2.468

-2.86

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was A$0.02 Mil.
Revenue was A$1.05 Mil.
Gross Profit was A$1.05 Mil.
Total Current Assets was A$1.28 Mil.
Total Assets was A$2.55 Mil.
Property, Plant and Equipment(Net PPE) was A$0.18 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.07 Mil.
Selling, General, & Admin. Expense(SGA) was A$2.17 Mil.
Total Current Liabilities was A$1.00 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.29 Mil.
Net Income was A$-2.57 Mil.
Gross Profit was A$0.05 Mil.
Cash Flow from Operations was A$-2.10 Mil.

Total Receivables was A$0.00 Mil.
Revenue was A$0.82 Mil.
Gross Profit was A$0.82 Mil.
Total Current Assets was A$3.64 Mil.
Total Assets was A$4.50 Mil.
Property, Plant and Equipment(Net PPE) was A$0.25 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.01 Mil.
Selling, General, & Admin. Expense(SGA) was A$1.91 Mil.
Total Current Liabilities was A$0.72 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.19 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)
	=	(0.023 / 1.054)	/	(0 / 0.822)
	=	0.021822	/	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)
	=	(0.822 / 0.822)	/	(1.054 / 1.054)
	=	1	/	1
	=	1

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 - (1.279 + 0.175) / 2.551)	/	(1 - (3.637 + 0.248) / 4.495)
	=	0.430027	/	0.135706
	=	3.1688

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
	=	1.054	/	0.822
	=	1.2822

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))
	=	(0.013 / (0.013 + 0.248))	/	(0.074 / (0.074 + 0.175))
	=	0.049808	/	0.297189
	=	0.1676

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)
	=	(2.169 / 1.054)	/	(1.914 / 0.822)
	=	2.057875	/	2.328467
	=	0.8838

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)
	=	((0.288 + 0.995) / 2.551)	/	((0.194 + 0.722) / 4.495)
	=	0.50294	/	0.203782
	=	2.468

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
	=	(-2.566 - 0.054	-	-2.102)	/	2.551
	=	-0.203058

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.

Equity Story Group has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.

Equity Story Group Beneish M-Score Related Terms

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