Argo Group (LSE:ARGO) Beneish M-Score : -14.59 (As of May. 17, 2024)

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What is Argo 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 -14.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ARGO' s Beneish M-Score Range Over the Past 10 Years
Min: -14.59 Med: -2.68 Max: 27.94
Current: -14.59

During the past 13 years, the highest Beneish M-Score of Argo Group was 27.94. The lowest was -14.59. And the median was -2.68.

Argo Group Beneish M-Score Historical Data

The historical data trend for Argo 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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Argo Group Beneish M-Score Chart

Argo Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.93

27.94

-2.44

9.62

-14.59

Argo Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.44	-	9.62	-	-14.59

Competitive Comparison of Argo Group's Beneish M-Score

For the Asset Management subindustry, Argo 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.

Argo Group's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Argo Group's Beneish M-Score distribution charts can be found below:

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

Argo 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 Argo 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 * 0.8065

0.528 * 0.0641

0.404 * 0.0245

0.892 * 1.1522

0.115 * 1.0955

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7483

4.679 * -2.176888

0.327 * 4.192

-14.59

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £0.32 Mil.
Revenue was £2.41 Mil.
Gross Profit was £0.77 Mil.
Total Current Assets was £4.30 Mil.
Total Assets was £4.79 Mil.
Property, Plant and Equipment(Net PPE) was £0.42 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.08 Mil.
Selling, General, & Admin. Expense(SGA) was £0.41 Mil.
Total Current Liabilities was £0.49 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £-11.40 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-0.96 Mil.

Total Receivables was £0.34 Mil.
Revenue was £2.09 Mil.
Gross Profit was £0.04 Mil.
Total Current Assets was £5.29 Mil.
Total Assets was £16.80 Mil.
Property, Plant and Equipment(Net PPE) was £0.50 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.10 Mil.
Selling, General, & Admin. Expense(SGA) was £0.48 Mil.
Total Current Liabilities was £0.41 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 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)
	=	(0.315 / 2.408)	/	(0.339 / 2.09)
	=	0.130814	/	0.162201
	=	0.8065

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)
	=	(0.043 / 2.09)	/	(0.773 / 2.408)
	=	0.020574	/	0.321013
	=	0.0641

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 - (4.301 + 0.416) / 4.794)	/	(1 - (5.289 + 0.499) / 16.802)
	=	0.016062	/	0.655517
	=	0.0245

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
	=	2.408	/	2.09
	=	1.1522

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))
	=	(0.103 / (0.103 + 0.499))	/	(0.077 / (0.077 + 0.416))
	=	0.171096	/	0.156187
	=	1.0955

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)
	=	(0.413 / 2.408)	/	(0.479 / 2.09)
	=	0.171512	/	0.229187
	=	0.7483

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 + 0.488) / 4.794)	/	((0 + 0.408) / 16.802)
	=	0.101794	/	0.024283
	=	4.192

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
	=	(-11.4 - 0	-	-0.964)	/	4.794
	=	-2.176888

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.

Argo Group has a M-score of -14.59 suggests that the company is unlikely to be a manipulator.

Argo Group Beneish M-Score Related Terms

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Argo Group (LSE:ARGO) Business Description

Industry

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IW6:Germany

Address

24-25 New Bond Street, 2nd Floor, London, GBR, W1S 2RR

Website

https://www.argogrouplimited.com

Argo Group Ltd is an investment management company that invests in multi-strategy investment in emerging markets. Its investment objective is to provide investors with absolute returns on the funds. The group aims to deliver low volatility, double-digit absolute returns through a fundamental, bottom-up investment approach. The Group's funds invest in performing fixed-income securities, both sovereign and corporate, distressed debt, and real estate. The company operates as a single asset management business.