Source Rock Royalties (TSXV:SRR) Beneish M-Score : -2.68 (As of May. 11, 2024)

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What is Source Rock Royalties 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 -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSXV:SRR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75 Med: -2.72 Max: -2.68
Current: -2.68

During the past 4 years, the highest Beneish M-Score of Source Rock Royalties was -2.68. The lowest was -2.75. And the median was -2.72.

Source Rock Royalties Beneish M-Score Historical Data

The historical data trend for Source Rock Royalties'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.

* Premium members only.

Source Rock Royalties Beneish M-Score Chart

Source Rock Royalties Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.75

-2.68

Source Rock Royalties Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial								-2.75	-2.98	-2.59	-1.82	-2.68

Competitive Comparison of Source Rock Royalties's Beneish M-Score

For the Oil & Gas Midstream subindustry, Source Rock Royalties'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.

Source Rock Royalties's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Source Rock Royalties's Beneish M-Score distribution charts can be found below:

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

Source Rock Royalties 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 Source Rock Royalties 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 * 1.1362

0.528 * 1.2741

0.404 * 0.768

0.892 * 1.024

0.115 * 1.1542

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3797

4.679 * -0.122785

0.327 * 0.3074

-2.68

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$1.27 Mil.
Revenue was 1.72 + 2.019 + 1.527 + 1.38 = C$6.65 Mil.
Gross Profit was 0.867 + 1.122 + 0.761 + 0.714 = C$3.46 Mil.
Total Current Assets was C$2.77 Mil.
Total Assets was C$27.26 Mil.
Property, Plant and Equipment(Net PPE) was C$24.15 Mil.
Depreciation, Depletion and Amortization(DDA) was C$3.18 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.63 Mil.
Total Current Liabilities was C$0.40 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.
Net Income was 0.382 + 0.53 + 0.432 + 0.222 = C$1.57 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = C$0.00 Mil.
Cash Flow from Operations was 1.739 + 1.494 + 0.983 + 0.697 = C$4.91 Mil.

Total Receivables was C$1.10 Mil.
Revenue was 1.504 + 1.555 + 1.904 + 1.527 = C$6.49 Mil.
Gross Profit was 0.922 + 1.036 + 1.363 + 0.989 = C$4.31 Mil.
Total Current Assets was C$14.29 Mil.
Total Assets was C$28.82 Mil.
Property, Plant and Equipment(Net PPE) was C$14.06 Mil.
Depreciation, Depletion and Amortization(DDA) was C$2.18 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.15 Mil.
Total Current Liabilities was C$1.38 Mil.
Long-Term Debt & Capital Lease Obligation was C$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)
	=	(1.274 / 6.646)	/	(1.095 / 6.49)
	=	0.191694	/	0.168721
	=	1.1362

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)
	=	(4.31 / 6.49)	/	(3.464 / 6.646)
	=	0.664099	/	0.521216
	=	1.2741

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 - (2.767 + 24.152) / 27.259)	/	(1 - (14.292 + 14.058) / 28.818)
	=	0.012473	/	0.01624
	=	0.768

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
	=	6.646	/	6.49
	=	1.024

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))
	=	(2.182 / (2.182 + 14.058))	/	(3.182 / (3.182 + 24.152))
	=	0.13436	/	0.116412
	=	1.1542

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)
	=	(1.629 / 6.646)	/	(1.153 / 6.49)
	=	0.24511	/	0.177658
	=	1.3797

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 + 0.401) / 27.259)	/	((0 + 1.379) / 28.818)
	=	0.014711	/	0.047852
	=	0.3074

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
	=	(1.566 - 0	-	4.913)	/	27.259
	=	-0.122785

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.

Source Rock Royalties has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Source Rock Royalties Beneish M-Score Related Terms

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Source Rock Royalties (TSXV:SRR) Business Description

Industry

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Traded in Other Exchanges

SRRRF:USA

Address

421 - 7th Avenue S.W, 30th Floor, Calgary, AB, CAN, T2P 4K9

Website

https://www.sourcerockroyalties.com

Source Rock Royalties Ltd is a pure-play oil and gas royalty company with an existing, light oil-focused portfolio of royalty interests concentrated in southeast Saskatchewan, east-central Alberta, west-central Alberta, and west-central Saskatchewan.

Executives

Bradley Robert Docherty	Director, Senior Officer
Shaun Ashton Thiessen	Director

Source Rock Royalties (TSXV:SRR) Headlines

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