West Texas Resources (West Texas Resources) Beneish M-Score : 189.77 (As of May. 14, 2024)

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What is West Texas Resources 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.

Warning Sign:

Beneish M-Score 189.77 higher than -1.78, which implies that the company might have manipulated its financial results.

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

WTXR' s Beneish M-Score Range Over the Past 10 Years
Min: -7.18 Med: 91.3 Max: 189.77
Current: 189.77

During the past 6 years, the highest Beneish M-Score of West Texas Resources was 189.77. The lowest was -7.18. And the median was 91.30.

West Texas Resources Beneish M-Score Historical Data

The historical data trend for West Texas Resources'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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West Texas Resources Beneish M-Score Chart

West Texas Resources Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Beneish M-Score

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-7.18

West Texas Resources Quarterly Data
	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Sep22	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	189.77

Competitive Comparison of West Texas Resources's Beneish M-Score

For the Oil & Gas E&P subindustry, West Texas Resources'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.

West Texas Resources's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, West Texas Resources's Beneish M-Score distribution charts can be found below:

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

West Texas Resources 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 West Texas Resources 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

0.528 * 0.5926

0.404 * 491.3672

0.892 * 2.6667

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3041

4.679 * -1.307692

0.327 * 1.6508

189.77

This Year (Sep23) TTM:

Last Year (Mar17) TTM:

Total Receivables was $0.00 Mil.
Revenue was 0 + 0.001 + 0.002 + 0.005 = $0.01 Mil.
Gross Profit was -0.001 + 0 + -0.004 + -0.004 = $-0.01 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $0.16 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.22 Mil.
Total Current Liabilities was $0.17 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -0.01 + -0.004 + -0.122 + -0.103 = $-0.24 Mil.
Non Operating Income was 0 + 0 + 0 + -0.004 = $-0.00 Mil.
Cash Flow from Operations was 0 + 0 + -0.003 + -0.028 = $-0.03 Mil.

Total Receivables was $0.00 Mil.
Revenue was 0.003 + 0 + 0 + 0 = $0.00 Mil.
Gross Profit was -0.002 + 0 + 0 + 0 = $-0.00 Mil.
Total Current Assets was $0.02 Mil.
Total Assets was $0.50 Mil.
Property, Plant and Equipment(Net PPE) was $0.48 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.28 Mil.
Total Current Liabilities was $0.32 Mil.
Long-Term Debt & Capital Lease Obligation was $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)
	=	(0 / 0.008)	/	(0.002 / 0.003)
	=	0	/	0.666667
	=	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)
	=	(-0.002 / 0.003)	/	(-0.009 / 0.008)
	=	-0.666667	/	-1.125
	=	0.5926

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 - (0.003 + 0) / 0.156)	/	(1 - (0.024 + 0.476) / 0.501)
	=	0.980769	/	0.001996
	=	491.3672

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
	=	0.008	/	0.003
	=	2.6667

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 / (0 + 0.476))	/	(0.003 / (0.003 + 0))
	=	0	/	1
	=	1

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)
	=	(0.223 / 0.008)	/	(0.275 / 0.003)
	=	27.875	/	91.666667
	=	0.3041

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 + 0.165) / 0.156)	/	((0 + 0.321) / 0.501)
	=	1.057692	/	0.640719
	=	1.6508

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
	=	(-0.239 - -0.004	-	-0.031)	/	0.156
	=	-1.307692

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.

West Texas Resources has a M-score of 189.77 signals that the company is likely to be a manipulator.

West Texas Resources Beneish M-Score Related Terms

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West Texas Resources (West Texas Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » West Texas Resources Inc (OTCPK:WTXR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

5729 Lebanon Road, Suite 144, Frisco, TX, USA, 75034

Website

http://www.westtexasresources.com

West Texas Resources Inc is a United States-based company engaged in the acquisition, exploration, and development of oil and gas properties in North America. The Company targets both new and existing fields and producing wells to be revitalized.

West Texas Resources (West Texas Resources) Headlines

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