Rainbow Rare Earths (LSE:RBW) Beneish M-Score : 0.00 (As of May. 30, 2024)

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What is Rainbow Rare Earths 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 Rainbow Rare Earths's Beneish M-Score or its related term are showing as below:

During the past 10 years, the highest Beneish M-Score of Rainbow Rare Earths was 0.00. The lowest was 0.00. And the median was 0.00.

Rainbow Rare Earths Beneish M-Score Historical Data

The historical data trend for Rainbow Rare Earths'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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Rainbow Rare Earths Beneish M-Score Chart

Rainbow Rare Earths Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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Rainbow Rare Earths Semi-Annual Data
	Jun14	Jun15	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													-	-	-	-	-

Competitive Comparison of Rainbow Rare Earths's Beneish M-Score

For the Other Industrial Metals & Mining subindustry, Rainbow Rare Earths'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.

Rainbow Rare Earths's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Rainbow Rare Earths's Beneish M-Score distribution charts can be found below:

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

Rainbow Rare Earths 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 Rainbow Rare Earths 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was £0.00 Mil.
Revenue was £0.00 Mil.
Gross Profit was £0.00 Mil.
Total Current Assets was £7.28 Mil.
Total Assets was £11.16 Mil.
Property, Plant and Equipment(Net PPE) was £3.88 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.30 Mil.
Selling, General, & Admin. Expense(SGA) was £2.78 Mil.
Total Current Liabilities was £1.17 Mil.
Long-Term Debt & Capital Lease Obligation was £0.24 Mil.
Net Income was £-9.49 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-2.20 Mil.

Total Receivables was £0.09 Mil.
Revenue was £0.00 Mil.
Gross Profit was £0.00 Mil.
Total Current Assets was £4.38 Mil.
Total Assets was £13.91 Mil.
Property, Plant and Equipment(Net PPE) was £9.53 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.31 Mil.
Selling, General, & Admin. Expense(SGA) was £2.91 Mil.
Total Current Liabilities was £0.96 Mil.
Long-Term Debt & Capital Lease Obligation was £0.49 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)
	=	(0.002 / 0)	/	(0.091 / 0)
	=		/
	=

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 / 0)	/	(0 / 0)
	=		/
	=

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 - (7.278 + 3.878) / 11.156)	/	(1 - (4.379 + 9.532) / 13.911)
	=	0	/	0
	=

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	/	0
	=

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))
	=	(0.309 / (0.309 + 9.532))	/	(0.303 / (0.303 + 3.878))
	=	0.031399	/	0.072471
	=

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)
	=	(2.779 / 0)	/	(2.911 / 0)
	=		/
	=

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)
	=	((0.242 + 1.167) / 11.156)	/	((0.486 + 0.955) / 13.911)
	=	0.1263	/	0.103587
	=

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
	=	(-9.491 - 0	-	-2.195)	/	11.156
	=	-0.653998

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.

Rainbow Rare Earths Beneish M-Score Related Terms

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Rainbow Rare Earths (LSE:RBW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Rainbow Rare Earths Ltd (LSE:RBW) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RBWRF:USA RBWl:UK GBP:Germany

Address

St Julian's Avenue, Connaught House, Saint Peter Port, GGY, GY1 3EL

Website

https://www.rainbowrareearths.com

Rainbow Rare Earths Ltd aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the magnet rare earth elements neodymium & praseodymium, dysprosium & terbium. It is focused on the development of the Phalaborwa Project and the earlier stage Uberaba Project. Both projects entail the recovery of rare earths from phosphogypsum stacks that occur as the by-product of phosphoric acid production, with the original source rock for both deposits being a hardrock carbonatite.

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