Fadel Partners (LSE:FADL) Beneish M-Score : -0.43 (As of May. 29, 2024)

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What is Fadel Partners 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 -0.43 higher than -1.78, which implies that the company might have manipulated its financial results.

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

LSE:FADL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39 Med: -1.12 Max: -0.43
Current: -0.43

During the past 5 years, the highest Beneish M-Score of Fadel Partners was -0.43. The lowest was -3.39. And the median was -1.12.

Fadel Partners Beneish M-Score Historical Data

The historical data trend for Fadel Partners'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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Fadel Partners Beneish M-Score Chart

Fadel Partners Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.12

-3.39

-0.43

Fadel Partners Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-1.12	-	-3.39	-	-0.43

Competitive Comparison of Fadel Partners's Beneish M-Score

For the Software - Application subindustry, Fadel Partners'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.

Fadel Partners's Beneish M-Score Distribution in the Software Industry

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

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

Fadel Partners 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 Fadel Partners 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 * 1.9585

0.528 * 0.968

0.404 * 0.6291

0.892 * 1.0575

0.115 * 1.1682

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.129

4.679 * 0.243658

0.327 * 0.5399

-0.43

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £4.75 Mil.
Revenue was £11.45 Mil.
Gross Profit was £7.13 Mil.
Total Current Assets was £8.03 Mil.
Total Assets was £12.97 Mil.
Property, Plant and Equipment(Net PPE) was £0.27 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.51 Mil.
Selling, General, & Admin. Expense(SGA) was £5.67 Mil.
Total Current Liabilities was £5.08 Mil.
Long-Term Debt & Capital Lease Obligation was £0.11 Mil.
Net Income was £-1.22 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-4.38 Mil.

Total Receivables was £2.29 Mil.
Revenue was £10.82 Mil.
Gross Profit was £6.52 Mil.
Total Current Assets was £3.44 Mil.
Total Assets was £8.43 Mil.
Property, Plant and Equipment(Net PPE) was £0.16 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.54 Mil.
Selling, General, & Admin. Expense(SGA) was £4.75 Mil.
Total Current Liabilities was £6.23 Mil.
Long-Term Debt & Capital Lease Obligation was £0.02 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)
	=	(4.749 / 11.445)	/	(2.293 / 10.823)
	=	0.414941	/	0.211864
	=	1.9585

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)
	=	(6.523 / 10.823)	/	(7.126 / 11.445)
	=	0.602698	/	0.62263
	=	0.968

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 - (8.029 + 0.267) / 12.969)	/	(1 - (3.439 + 0.163) / 8.431)
	=	0.360321	/	0.572767
	=	0.6291

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
	=	11.445	/	10.823
	=	1.0575

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))
	=	(0.539 / (0.539 + 0.163))	/	(0.512 / (0.512 + 0.267))
	=	0.767806	/	0.657253
	=	1.1682

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)
	=	(5.67 / 11.445)	/	(4.749 / 10.823)
	=	0.495413	/	0.438788
	=	1.129

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)
	=	((0.107 + 5.083) / 12.969)	/	((0.024 + 6.225) / 8.431)
	=	0.400185	/	0.741193
	=	0.5399

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
	=	(-1.223 - 0	-	-4.383)	/	12.969
	=	0.243658

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.

Fadel Partners has a M-score of -0.43 signals that the company is likely to be a manipulator.

Fadel Partners Beneish M-Score Related Terms

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Fadel Partners (LSE:FADL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Fadel Partners Inc (LSE:FADL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

530 5th Avenue, 9th Floor, New York, NY, USA, 10036

Website

https://www.fadel.com

Fadel Partners Inc is a developer of cloud-based brand compliance and rights and royalty management software, working with some licenses and licensees across media, entertainment, publishing, consumer brands, and hi-tech/gaming companies. It has two segments subscription and support revenue; and professional services.

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