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Innovate (Innovate) Beneish M-Score : -3.27 (As of May. 14, 2024)


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What is Innovate 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 -3.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

VATE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.9   Med: -2.08   Max: 4555.29
Current: -3.27

During the past 13 years, the highest Beneish M-Score of Innovate was 4555.29. The lowest was -4.90. And the median was -2.08.


Innovate Beneish M-Score Historical Data

The historical data trend for Innovate'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.

Innovate Beneish M-Score Chart

Innovate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.13 -4.90 -0.30 -2.36 -2.96

Innovate Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.59 -2.55 -2.94 -2.96 -3.27

Competitive Comparison of Innovate's Beneish M-Score

For the Engineering & Construction subindustry, Innovate'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.


Innovate's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Innovate's Beneish M-Score distribution charts can be found below:

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



Innovate 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 Innovate for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8832+0.528 * 0.8967+0.404 * 1.0485+0.892 * 0.9208+0.115 * 1.0762
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0048+4.679 * -0.120933-0.327 * 1.0508
=-3.27

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $353 Mil.
Revenue was 315.2 + 361 + 375.3 + 368.8 = $1,420 Mil.
Gross Profit was 48.6 + 61.1 + 58.7 + 52.6 = $221 Mil.
Total Current Assets was $429 Mil.
Total Assets was $944 Mil.
Property, Plant and Equipment(Net PPE) was $204 Mil.
Depreciation, Depletion and Amortization(DDA) was $34 Mil.
Selling, General, & Admin. Expense(SGA) was $166 Mil.
Total Current Liabilities was $349 Mil.
Long-Term Debt & Capital Lease Obligation was $688 Mil.
Net Income was -17.4 + -9.3 + -7 + -9.9 = $-44 Mil.
Non Operating Income was -2.4 + -4.1 + -1.1 + 0 = $-8 Mil.
Cash Flow from Operations was -25.4 + 61.2 + 26.1 + 16.2 = $78 Mil.
Total Receivables was $434 Mil.
Revenue was 317.9 + 409.3 + 423 + 392.2 = $1,542 Mil.
Gross Profit was 43.6 + 62.9 + 58.4 + 50.3 = $215 Mil.
Total Current Assets was $488 Mil.
Total Assets was $1,044 Mil.
Property, Plant and Equipment(Net PPE) was $229 Mil.
Depreciation, Depletion and Amortization(DDA) was $42 Mil.
Selling, General, & Admin. Expense(SGA) was $179 Mil.
Total Current Liabilities was $375 Mil.
Long-Term Debt & Capital Lease Obligation was $718 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)
=(352.9 / 1420.3) / (433.9 / 1542.4)
=0.248469 / 0.281315
=0.8832

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)
=(215.2 / 1542.4) / (221 / 1420.3)
=0.139523 / 0.155601
=0.8967

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 - (429.2 + 203.8) / 943.5) / (1 - (487.9 + 228.5) / 1044.1)
=0.329094 / 0.313859
=1.0485

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
=1420.3 / 1542.4
=0.9208

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))
=(41.8 / (41.8 + 228.5)) / (34.2 / (34.2 + 203.8))
=0.154643 / 0.143697
=1.0762

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)
=(165.8 / 1420.3) / (179.2 / 1542.4)
=0.116736 / 0.116183
=1.0048

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)
=((688.3 + 349) / 943.5) / ((717.9 + 374.5) / 1044.1)
=1.099417 / 1.04626
=1.0508

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
=(-43.6 - -7.6 - 78.1) / 943.5
=-0.120933

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.

Innovate has a M-score of -3.27 suggests that the company is unlikely to be a manipulator.


Innovate Beneish M-Score Related Terms

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Innovate (Innovate) Business Description

Traded in Other Exchanges
Address
295 Madison Avenue, 12th Floor, New York, NY, USA, 10017
Innovate Corp is a diversified holding company that has a portfolio of subsidiaries in a variety of operating segments which are; The infrastructure segment is comprised of DBM Global Inc, a fully integrated industrial construction, structural steel, and facility maintenance provider that provides fabrication and erection of structural steel and heavy steel plate services, The Life Sciences segment is comprised of Pansend Life Sciences which seeks to develop products to treat early osteoarthritis of the knee and aesthetic and medical technologies for the skin, and Spectrum segment is comprised of HC2 Broadcasting Holdings Inc which operates over-the-air broadcasting stations across the United States.
Executives
Wayne Jr Barr director ANACOMP INC, 15378 AVENUE OF SCIENCE, SAN DIEGO CA 92128
Michael J. Sena officer: Chief Financial Officer 450 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10022
Brian Steven Goldstein director 295 MADISON AVENUE, 12TH FLOOR, NEW YORK NY 10017
Amy Marie Wilkinson director 295 MADISON AVENUE, 12TH FLOOR, NEW YORK NY 10017
Shelly Lombard director 44 MORSE AVENUE, BLOOMFIELD NJ 07003
Avram A Glazer director C/O WOODS OVIATT GILMAN LLP, 700 CROSSROADS BUILDING, ROCHESTER NY 14614
Suzi R Herbst officer: Chief Administrative Officer C/O HC2 HOLDINGS, INC., 450 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10022
Joseph Anthony Ferraro officer: Chief Legal Officer & Corp Sec 56 EMILY ROAD, FAR HILLS FL 07931
Continental Ltc, Inc. 10 percent owner 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Michael Gorzynski director, 10 percent owner 595 MADISON AVE, FLOOR 29, NEW YORK NY 10022
Continental General Insurance Co 10 percent owner 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Continental Insurance Group, Ltd. 10 percent owner 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Percy Rockdale Llc 10 percent owner 595 MADISON AVENUE, 29TH FLOOR, NEW YORK NY 10022
Mg Capital Management Ltd. 10 percent owner C/O CAMPBELLS LLP, FLOOR 4, WILLOW HOUSE, CRICKET SQUARE, GRAND CAYMAN E9 KY1-9010
Rio Royal Llc 10 percent owner 595 MADISON AVENUE, 29TH FLOOR, NEW YORK NY 10022