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Bigtincan Holdings (ASX:BTH) Beneish M-Score : -2.55 (As of May. 12, 2024)


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What is Bigtincan Holdings 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:BTH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81   Med: -1.79   Max: 0.34
Current: -2.55

During the past 7 years, the highest Beneish M-Score of Bigtincan Holdings was 0.34. The lowest was -2.81. And the median was -1.79.


Bigtincan Holdings Beneish M-Score Historical Data

The historical data trend for Bigtincan Holdings'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.

Bigtincan Holdings Beneish M-Score Chart

Bigtincan Holdings Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Get a 7-Day Free Trial 0.34 -2.81 -0.73 -1.79 -2.55

Bigtincan Holdings Semi-Annual Data
Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - -1.79 - -2.55 -

Competitive Comparison of Bigtincan Holdings's Beneish M-Score

For the Software - Application subindustry, Bigtincan Holdings'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.


Bigtincan Holdings's Beneish M-Score Distribution in the Software Industry

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

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



Bigtincan Holdings 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 Bigtincan Holdings 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 * 1.176+0.528 * 1+0.404 * 1.0082+0.892 * 1.1329+0.115 * 0.908
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9744+4.679 * -0.072177-0.327 * 1.0161
=-2.55

* 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 (Jun23) TTM:Last Year (Jun22) TTM:
Total Receivables was A$25.8 Mil.
Revenue was A$122.4 Mil.
Gross Profit was A$107.5 Mil.
Total Current Assets was A$68.2 Mil.
Total Assets was A$320.2 Mil.
Property, Plant and Equipment(Net PPE) was A$4.1 Mil.
Depreciation, Depletion and Amortization(DDA) was A$19.6 Mil.
Selling, General, & Admin. Expense(SGA) was A$106.1 Mil.
Total Current Liabilities was A$72.6 Mil.
Long-Term Debt & Capital Lease Obligation was A$2.5 Mil.
Net Income was A$-27.4 Mil.
Gross Profit was A$7.5 Mil.
Cash Flow from Operations was A$-11.8 Mil.
Total Receivables was A$19.4 Mil.
Revenue was A$108.0 Mil.
Gross Profit was A$94.9 Mil.
Total Current Assets was A$67.4 Mil.
Total Assets was A$306.8 Mil.
Property, Plant and Equipment(Net PPE) was A$3.8 Mil.
Depreciation, Depletion and Amortization(DDA) was A$11.4 Mil.
Selling, General, & Admin. Expense(SGA) was A$96.1 Mil.
Total Current Liabilities was A$68.9 Mil.
Long-Term Debt & Capital Lease Obligation was A$2.0 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)
=(25.827 / 122.395) / (19.384 / 108.033)
=0.211014 / 0.179427
=1.176

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)
=(94.852 / 108.033) / (107.465 / 122.395)
=0.877991 / 0.878018
=1

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 - (68.224 + 4.105) / 320.159) / (1 - (67.443 + 3.787) / 306.774)
=0.774084 / 0.76781
=1.0082

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
=122.395 / 108.033
=1.1329

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))
=(11.422 / (11.422 + 3.787)) / (19.639 / (19.639 + 4.105))
=0.751003 / 0.827114
=0.908

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)
=(106.112 / 122.395) / (96.118 / 108.033)
=0.866964 / 0.88971
=0.9744

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)
=((2.482 + 72.643) / 320.159) / ((1.982 + 68.86) / 306.774)
=0.234649 / 0.230926
=1.0161

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
=(-27.38 - 7.513 - -11.785) / 320.159
=-0.072177

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.

Bigtincan Holdings has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.


Bigtincan Holdings Beneish M-Score Related Terms

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Bigtincan Holdings (ASX:BTH) Business Description

Traded in Other Exchanges
Address
320 Pitt Street, Level 8, Sydney, NSW, AUS, 2000
Bigtincan Holdings Ltd is a provider of enterprise mobility software, which enables sales and service organisations to increase sales and improve customer satisfaction through improved mobile worker productivity. It serves life sciences; financial services; retail; technology; manufacturing; telecommunications; government and energy industries. The company platforms include Bigtincan Hub; Bigtincan Zunos; Bigtincan Life Sciences; and others. It generates maximum revenue from the Subscription and support services. Geographically, it derives a majority of revenue from the United States of America and also has a presence in Australia and the rest of the world.

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