A2Z Smart Technologies (TSXV:AZ) Beneish M-Score : -5.38 (As of May. 15, 2024)

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What is A2Z Smart Technologies 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 -5.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for A2Z Smart Technologies's Beneish M-Score or its related term are showing as below:

TSXV:AZ' s Beneish M-Score Range Over the Past 10 Years
Min: -5.38 Med: -2.95 Max: -0.23
Current: -5.38

During the past 6 years, the highest Beneish M-Score of A2Z Smart Technologies was -0.23. The lowest was -5.38. And the median was -2.95.

A2Z Smart Technologies Beneish M-Score Historical Data

The historical data trend for A2Z Smart Technologies'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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A2Z Smart Technologies Beneish M-Score Chart

A2Z Smart Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.75

-0.23

-3.14

-5.38

A2Z Smart Technologies 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															-3.14	-4.26	-4.47	-5.33	-5.38

Competitive Comparison of A2Z Smart Technologies's Beneish M-Score

For the Aerospace & Defense subindustry, A2Z Smart Technologies'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.

A2Z Smart Technologies's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, A2Z Smart Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where A2Z Smart Technologies's Beneish M-Score falls into.

A2Z Smart Technologies 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 A2Z Smart Technologies 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 * 0.635

0.528 * 1.1221

0.404 * 0.8457

0.892 * 1.2408

0.115 * 0.6864

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9212

4.679 * -0.570829

0.327 * 1.3007

-5.39

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$2.43 Mil.
Revenue was 1.77 + 3.502 + 3.8 + 6.305 = C$15.38 Mil.
Gross Profit was -0.046 + 0.498 + 0.848 + 1.397 = C$2.70 Mil.
Total Current Assets was C$6.35 Mil.
Total Assets was C$11.43 Mil.
Property, Plant and Equipment(Net PPE) was C$2.50 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.39 Mil.
Selling, General, & Admin. Expense(SGA) was C$19.35 Mil.
Total Current Liabilities was C$7.56 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.86 Mil.
Net Income was -4.85 + -2.579 + -9.258 + -4.889 = C$-21.58 Mil.
Non Operating Income was 0.325 + 3.058 + -3.652 + 0.554 = C$0.29 Mil.
Cash Flow from Operations was -3.024 + -4.461 + -4.457 + -3.395 = C$-15.34 Mil.

Total Receivables was C$3.09 Mil.
Revenue was 5.196 + 3.535 + 1.831 + 1.831 = C$12.39 Mil.
Gross Profit was 1.246 + 0.574 + 0.27 + 0.349 = C$2.44 Mil.
Total Current Assets was C$9.43 Mil.
Total Assets was C$17.25 Mil.
Property, Plant and Equipment(Net PPE) was C$3.20 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.04 Mil.
Selling, General, & Admin. Expense(SGA) was C$16.93 Mil.
Total Current Liabilities was C$8.47 Mil.
Long-Term Debt & Capital Lease Obligation was C$1.29 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)
	=	(2.434 / 15.377)	/	(3.089 / 12.393)
	=	0.158288	/	0.249254
	=	0.635

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)
	=	(2.439 / 12.393)	/	(2.697 / 15.377)
	=	0.196805	/	0.175392
	=	1.1221

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 - (6.347 + 2.497) / 11.429)	/	(1 - (9.431 + 3.202) / 17.245)
	=	0.226179	/	0.26744
	=	0.8457

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
	=	15.377	/	12.393
	=	1.2408

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))
	=	(1.039 / (1.039 + 3.202))	/	(1.386 / (1.386 + 2.497))
	=	0.244989	/	0.356941
	=	0.6864

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)
	=	(19.353 / 15.377)	/	(16.932 / 12.393)
	=	1.258568	/	1.366255
	=	0.9212

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)
	=	((0.856 + 7.556) / 11.429)	/	((1.285 + 8.473) / 17.245)
	=	0.736022	/	0.565845
	=	1.3007

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
	=	(-21.576 - 0.285	-	-15.337)	/	11.429
	=	-0.570829

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.

A2Z Smart Technologies has a M-score of -5.39 suggests that the company is unlikely to be a manipulator.

A2Z Smart Technologies Beneish M-Score Related Terms

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A2Z Smart Technologies (TSXV:AZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » A2Z Smart Technologies Corp (TSXV:AZ) » Definitions » Beneish M-Score

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Traded in Other Exchanges

AZ:USA

Address

559 Briar Hill Avenue, Toronto, ON, CAN, M5N 1N1

Website

https://www.a2zas.com

A2Z Smart Technologies Corp is a technology company in Israel providing products to the Israeli Defense and Security Forces, specializing in military unmanned robotics and state-of-the-art automation and electronics technology. The company commenced the development of two products for the automotive market. The first product is a capsule that can be placed in a fuel tank to prevent gas tank explosions. The second product under development is a vehicle cover device that will protect automobiles from extreme weather conditions while the vehicle is not in use. The company also provides maintenance services to both external and in-house complex electronic systems and products.