Bawat Water Technologies AB (FRA:M5W) Beneish M-Score : -2.16 (As of May. 27, 2024)

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What is Bawat Water Technologies AB 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 -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:M5W' s Beneish M-Score Range Over the Past 10 Years
Min: -2.16 Med: -2.16 Max: -2.16
Current: -2.16

During the past 4 years, the highest Beneish M-Score of Bawat Water Technologies AB was -2.16. The lowest was -2.16. And the median was -2.16.

Bawat Water Technologies AB Beneish M-Score Historical Data

The historical data trend for Bawat Water Technologies AB'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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Bawat Water Technologies AB Beneish M-Score Chart

Bawat Water Technologies AB Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.16

Bawat Water Technologies AB Quarterly Data
	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial							-	-	12.12	-2.90	-2.16

Competitive Comparison of Bawat Water Technologies AB's Beneish M-Score

For the Pollution & Treatment Controls subindustry, Bawat Water Technologies AB'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.

Bawat Water Technologies AB's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Bawat Water Technologies AB's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Bawat Water Technologies AB's Beneish M-Score falls into.

Bawat Water Technologies AB 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 Bawat Water Technologies AB 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 * 0.9849

0.528 * 1

0.404 * 0.9487

0.892 * 1.6616

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * -1.413

4.679 * -0.123321

0.327 * 1.4065

-2.22

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €0.65 Mil.
Revenue was 0.602 + 0.647 + 0.354 + 0.371 = €1.97 Mil.
Gross Profit was 0.602 + 0.647 + 0.354 + 0.371 = €1.97 Mil.
Total Current Assets was €0.96 Mil.
Total Assets was €4.10 Mil.
Property, Plant and Equipment(Net PPE) was €0.48 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €-1.24 Mil.
Total Current Liabilities was €1.68 Mil.
Long-Term Debt & Capital Lease Obligation was €3.14 Mil.
Net Income was -0.428 + -0.601 + -0.985 + -0.911 = €-2.93 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was -0.507 + -0.751 + -0.518 + -0.644 = €-2.42 Mil.

Total Receivables was €0.40 Mil.
Revenue was -0.079 + 0.306 + 0.584 + 0.377 = €1.19 Mil.
Gross Profit was -0.079 + 0.306 + 0.584 + 0.377 = €1.19 Mil.
Total Current Assets was €1.16 Mil.
Total Assets was €5.00 Mil.
Property, Plant and Equipment(Net PPE) was €0.42 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €0.53 Mil.
Total Current Liabilities was €1.95 Mil.
Long-Term Debt & Capital Lease Obligation was €2.23 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)
	=	(0.653 / 1.974)	/	(0.399 / 1.188)
	=	0.3308	/	0.335859
	=	0.9849

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)
	=	(1.188 / 1.188)	/	(1.974 / 1.974)
	=	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 - (0.958 + 0.476) / 4.095)	/	(1 - (1.159 + 0.417) / 5.002)
	=	0.649817	/	0.684926
	=	0.9487

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
	=	1.974	/	1.188
	=	1.6616

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 / (0 + 0.417))	/	(0 / (0 + 0.476))
	=	0	/	0
	=	1

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)
	=	(-1.242 / 1.974)	/	(0.529 / 1.188)
	=	-0.629179	/	0.445286
	=	-1.413

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)
	=	((3.135 + 1.678) / 4.095)	/	((2.227 + 1.953) / 5.002)
	=	1.175336	/	0.835666
	=	1.4065

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
	=	(-2.925 - 0	-	-2.42)	/	4.095
	=	-0.123321

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.

Bawat Water Technologies AB has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.

Bawat Water Technologies AB Beneish M-Score Related Terms

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Bawat Water Technologies AB (FRA:M5W) Business Description

Industry

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Traded in Other Exchanges

BAWAT:Sweden

Address

c/o Advokatfirman Lindahl KB, P.O. Box 5898, Stockholm, SWE, SE-102 40

Website

https://www.bawat.com

Bawat Water Technologies AB markets its patented ballast water management system globally, a cost-efficient, flexible, and sustainable solution to the problem of ballast water treatment.

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