Acceleware (TSXV:AXE) Beneish M-Score : -8.94 (As of May. 26, 2024)

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What is Acceleware 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 -8.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSXV:AXE' s Beneish M-Score Range Over the Past 10 Years
Min: -8.94 Med: -4.46 Max: -1.18
Current: -8.94

During the past 13 years, the highest Beneish M-Score of Acceleware was -1.18. The lowest was -8.94. And the median was -4.46.

Acceleware Beneish M-Score Historical Data

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

Acceleware Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-8.94

Acceleware Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-4.56	-	-7.19	-8.94

Competitive Comparison of Acceleware's Beneish M-Score

For the Software - Application subindustry, Acceleware'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.

Acceleware's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Acceleware's Beneish M-Score distribution charts can be found below:

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

Acceleware 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 Acceleware 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 * 0.3192

0.528 * 0.9421

0.404 * 1.6505

0.892 * 0.8506

0.115 * 1.1138

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1359

4.679 * -1.207947

0.327 * 1.8135

-8.94

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$0.28 Mil.
Revenue was 0.044 + 0.062 + 0.069 + 0.104 = C$0.28 Mil.
Gross Profit was 0.044 + 0.062 + 0.069 + 0.104 = C$0.28 Mil.
Total Current Assets was C$1.26 Mil.
Total Assets was C$1.51 Mil.
Property, Plant and Equipment(Net PPE) was C$0.05 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.04 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.97 Mil.
Total Current Liabilities was C$3.24 Mil.
Long-Term Debt & Capital Lease Obligation was C$1.46 Mil.
Net Income was 0.618 + -1.272 + -1.135 + -0.256 = C$-2.05 Mil.
Non Operating Income was -0.035 + 0.057 + 0.087 + 0.414 = C$0.52 Mil.
Cash Flow from Operations was 1.299 + -0.735 + -0.964 + -0.344 = C$-0.74 Mil.

Total Receivables was C$1.04 Mil.
Revenue was 0.073 + 0.053 + 0.12 + 0.082 = C$0.33 Mil.
Gross Profit was 0.073 + 0.053 + 0.101 + 0.082 = C$0.31 Mil.
Total Current Assets was C$2.24 Mil.
Total Assets was C$2.53 Mil.
Property, Plant and Equipment(Net PPE) was C$0.08 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.07 Mil.
Selling, General, & Admin. Expense(SGA) was C$2.04 Mil.
Total Current Liabilities was C$3.08 Mil.
Long-Term Debt & Capital Lease Obligation was C$1.26 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)
	=	(0.281 / 0.279)	/	(1.035 / 0.328)
	=	1.007168	/	3.155488
	=	0.3192

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)
	=	(0.309 / 0.328)	/	(0.279 / 0.279)
	=	0.942073	/	1
	=	0.9421

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 - (1.256 + 0.05) / 1.51)	/	(1 - (2.242 + 0.08) / 2.529)
	=	0.135099	/	0.081851
	=	1.6505

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
	=	0.279	/	0.328
	=	0.8506

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))
	=	(0.072 / (0.072 + 0.08))	/	(0.037 / (0.037 + 0.05))
	=	0.473684	/	0.425287
	=	1.1138

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)
	=	(1.974 / 0.279)	/	(2.043 / 0.328)
	=	7.075269	/	6.228659
	=	1.1359

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)
	=	((1.455 + 3.241) / 1.51)	/	((1.257 + 3.08) / 2.529)
	=	3.109934	/	1.714907
	=	1.8135

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
	=	(-2.045 - 0.523	-	-0.744)	/	1.51
	=	-1.207947

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.

Acceleware has a M-score of -8.94 suggests that the company is unlikely to be a manipulator.

Acceleware Beneish M-Score Related Terms

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Acceleware (TSXV:AXE) Business Description

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ACWRF:USA

Address

435 - 10 Avenue SE, Calgary, AB, CAN, T2G 0W3

Website

https://www.acceleware.com

Acceleware Ltd is a Canadian clean-tech company. It is an innovator of radio frequency heating technologies that enable the electrification of industrial heat and promise a dramatic reduction in greenhouse gas (GHG) emissions. It has two operating segments, RF Heating, and High-performance computing. The company generates revenue from maintenance, software, and services. Geographically it generates a majority of its revenue from the USA.

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