Armor Designs (LSE:ADID) Beneish M-Score : 71.18 (As of May. 29, 2024)

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What is Armor Designs 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.

Warning Sign:

Beneish M-Score 71.18 higher than -2.22, which implies that it might have manipulated its financial results.

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

LSE:ADID' s Beneish M-Score Range Over the Past 10 Years
Min: -9.89 Med: 30.65 Max: 71.18
Current: 71.18

During the past 9 years, the highest Beneish M-Score of Armor Designs was 71.18. The lowest was -9.89. And the median was 30.65.

Armor Designs Beneish M-Score Historical Data

The historical data trend for Armor Designs'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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Armor Designs Beneish M-Score Chart

Armor Designs Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Beneish M-Score

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-9.89

71.18

Armor Designs Semi-Annual Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13
Beneish M-Score	Get a 7-Day Free Trial				-	-	-	-9.89	71.18

Competitive Comparison of Armor Designs's Beneish M-Score

For the Aerospace & Defense subindustry, Armor Designs'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.

Armor Designs's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Armor Designs's Beneish M-Score distribution charts can be found below:

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

Armor Designs 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 Armor Designs 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 * 96.941

0.528 * -0.0188

0.404 * 1.1839

0.892 * 0.0172

0.115 * 0.7382

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 25.3998

4.679 * -1.27398

0.327 * 1.4492

74.11

This Year (Dec13) TTM:

Last Year (Dec12) TTM:

Total Receivables was £0.03 Mil.
Revenue was £0.06 Mil.
Gross Profit was £-0.97 Mil.
Total Current Assets was £0.33 Mil.
Total Assets was £1.81 Mil.
Property, Plant and Equipment(Net PPE) was £1.42 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.43 Mil.
Selling, General, & Admin. Expense(SGA) was £1.51 Mil.
Total Current Liabilities was £8.10 Mil.
Long-Term Debt & Capital Lease Obligation was £0.36 Mil.
Net Income was £-2.94 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-0.63 Mil.

Total Receivables was £0.02 Mil.
Revenue was £3.43 Mil.
Gross Profit was £1.06 Mil.
Total Current Assets was £0.36 Mil.
Total Assets was £2.30 Mil.
Property, Plant and Equipment(Net PPE) was £1.87 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.39 Mil.
Selling, General, & Admin. Expense(SGA) was £3.47 Mil.
Total Current Liabilities was £6.98 Mil.
Long-Term Debt & Capital Lease Obligation was £0.42 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)
	=	(0.025 / 0.059)	/	(0.015 / 3.432)
	=	0.423729	/	0.004371
	=	96.941

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)
	=	(1.058 / 3.432)	/	(-0.969 / 0.059)
	=	0.308275	/	-16.423729
	=	-0.0188

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 - (0.327 + 1.417) / 1.814)	/	(1 - (0.358 + 1.868) / 2.301)
	=	0.038589	/	0.032595
	=	1.1839

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
	=	0.059	/	3.432
	=	0.0172

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))
	=	(0.386 / (0.386 + 1.868))	/	(0.428 / (0.428 + 1.417))
	=	0.171251	/	0.231978
	=	0.7382

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)
	=	(1.513 / 0.059)	/	(3.465 / 3.432)
	=	25.644068	/	1.009615
	=	25.3998

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)
	=	((0.356 + 8.097) / 1.814)	/	((0.423 + 6.976) / 2.301)
	=	4.659868	/	3.215558
	=	1.4492

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
	=	(-2.944 - 0	-	-0.633)	/	1.814
	=	-1.27398

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.

Armor Designs has a M-score of 74.11 signals that the company is likely to be a manipulator.

Armor Designs Beneish M-Score Related Terms

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Armor Designs (LSE:ADID) Business Description

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Armor Designs Inc was incorporated in Delaware on March 30, 2006. The Company is a designer, integrator and manufacturer of body and vehicular armor solutions for military, government and commercial sectors on a global basis. Its focus is primarily on introducing next generation armor based on patented Volumetrically Controlled Manufacturing (VCM) technology.

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