WDS (ASX:WDS) Beneish M-Score : 0.00 (As of Apr. 28, 2024)

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What is WDS 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.

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

During the past 9 years, the highest Beneish M-Score of WDS was 0.00. The lowest was 0.00. And the median was 0.00.

WDS Beneish M-Score Historical Data

The historical data trend for WDS'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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WDS Beneish M-Score Chart

WDS Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Beneish M-Score

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-3.13

-3.06

-2.86

-2.62

-3.54

WDS Semi-Annual Data
	Jun06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14
Beneish M-Score	Get a 7-Day Free Trial												-	-2.62	-	-3.54	-

Competitive Comparison of WDS's Beneish M-Score

For the Engineering & Construction subindustry, WDS'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.

WDS's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, WDS's Beneish M-Score distribution charts can be found below:

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

WDS 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 WDS 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 * 0.7079

0.528 * 0.9604

0.404 * 0.984

0.892 * 1.0466

0.115 * 1.0253

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7957

4.679 * -0.175089

0.327 * 1.0839

-3.54

This Year (Jun14) TTM:

Last Year (Jun13) TTM:

Total Receivables was A$59.7 Mil.
Revenue was A$366.9 Mil.
Gross Profit was A$55.9 Mil.
Total Current Assets was A$90.2 Mil.
Total Assets was A$241.2 Mil.
Property, Plant and Equipment(Net PPE) was A$63.0 Mil.
Depreciation, Depletion and Amortization(DDA) was A$14.8 Mil.
Selling, General, & Admin. Expense(SGA) was A$16.3 Mil.
Total Current Liabilities was A$58.6 Mil.
Long-Term Debt & Capital Lease Obligation was A$6.3 Mil.
Net Income was A$13.3 Mil.
Gross Profit was A$1.9 Mil.
Cash Flow from Operations was A$53.7 Mil.

Total Receivables was A$80.6 Mil.
Revenue was A$350.6 Mil.
Gross Profit was A$51.3 Mil.
Total Current Assets was A$87.3 Mil.
Total Assets was A$237.7 Mil.
Property, Plant and Equipment(Net PPE) was A$62.3 Mil.
Depreciation, Depletion and Amortization(DDA) was A$15.1 Mil.
Selling, General, & Admin. Expense(SGA) was A$19.6 Mil.
Total Current Liabilities was A$52.8 Mil.
Long-Term Debt & Capital Lease Obligation was A$6.2 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)
	=	(59.738 / 366.912)	/	(80.633 / 350.58)
	=	0.162813	/	0.229999
	=	0.7079

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)
	=	(51.263 / 350.58)	/	(55.865 / 366.912)
	=	0.146223	/	0.152257
	=	0.9604

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 - (90.223 + 62.983) / 241.231)	/	(1 - (87.287 + 62.265) / 237.702)
	=	0.364899	/	0.370842
	=	0.984

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
	=	366.912	/	350.58
	=	1.0466

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))
	=	(15.094 / (15.094 + 62.265))	/	(14.802 / (14.802 + 62.983))
	=	0.195116	/	0.190294
	=	1.0253

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)
	=	(16.346 / 366.912)	/	(19.629 / 350.58)
	=	0.04455	/	0.05599
	=	0.7957

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)
	=	((6.268 + 58.61) / 241.231)	/	((6.216 + 52.766) / 237.702)
	=	0.268946	/	0.248134
	=	1.0839

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
	=	(13.304 - 1.856	-	53.685)	/	241.231
	=	-0.175089

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.

WDS has a M-score of -3.54 suggests that the company is unlikely to be a manipulator.

WDS Beneish M-Score Related Terms

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WDS (ASX:WDS) Business Description

Industry

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Address

Website

http://www.wdslimited.com.au

WDS Limited is an Australian provider of the development, design, engineering, construction, fabrication and maintenance related services to the cross-section of energy, mining and infrastructure sectors in Australia. The Company delivers services through two divisions, being Energy & Infrastructure and Mining.