Actual Experience (LSE:ACT) Beneish M-Score : -3.28 (As of May. 26, 2024)

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What is Actual Experience 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 -3.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ACT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03 Med: -3.09 Max: 14.56
Current: -3.28

During the past 12 years, the highest Beneish M-Score of Actual Experience was 14.56. The lowest was -4.03. And the median was -3.09.

Actual Experience Beneish M-Score Historical Data

The historical data trend for Actual Experience'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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Actual Experience Beneish M-Score Chart

Actual Experience Annual Data

Trend

Jul12

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Beneish M-Score

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14.56

-3.54

-2.90

-4.03

-3.28

Actual Experience Semi-Annual Data
	Mar13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23
Beneish M-Score	Get a 7-Day Free Trial															-	-4.03	-	-3.28	-

Competitive Comparison of Actual Experience's Beneish M-Score

For the Information Technology Services subindustry, Actual Experience'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.

Actual Experience's Beneish M-Score Distribution in the Software Industry

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

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

Actual Experience 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 Actual Experience 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 * 0.7094

0.528 * 1.6746

0.404 * 2.2897

0.892 * 0.6795

0.115 * 1.0352

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5975

4.679 * -0.156605

0.327 * 1.898

-3.28

This Year (Sep22) TTM:

Last Year (Sep21) TTM:

Total Receivables was £0.28 Mil.
Revenue was £1.18 Mil.
Gross Profit was £0.34 Mil.
Total Current Assets was £3.37 Mil.
Total Assets was £4.94 Mil.
Property, Plant and Equipment(Net PPE) was £0.59 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.83 Mil.
Selling, General, & Admin. Expense(SGA) was £4.09 Mil.
Total Current Liabilities was £0.96 Mil.
Long-Term Debt & Capital Lease Obligation was £0.49 Mil.
Net Income was £-5.27 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-4.50 Mil.

Total Receivables was £0.59 Mil.
Revenue was £1.74 Mil.
Gross Profit was £0.83 Mil.
Total Current Assets was £8.85 Mil.
Total Assets was £10.46 Mil.
Property, Plant and Equipment(Net PPE) was £0.72 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.09 Mil.
Selling, General, & Admin. Expense(SGA) was £3.77 Mil.
Total Current Liabilities was £1.01 Mil.
Long-Term Debt & Capital Lease Obligation was £0.61 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)
	=	(0.282 / 1.183)	/	(0.585 / 1.741)
	=	0.238377	/	0.336014
	=	0.7094

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)
	=	(0.833 / 1.741)	/	(0.338 / 1.183)
	=	0.478461	/	0.285714
	=	1.6746

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 - (3.373 + 0.594) / 4.936)	/	(1 - (8.845 + 0.72) / 10.462)
	=	0.196313	/	0.085739
	=	2.2897

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
	=	1.183	/	1.741
	=	0.6795

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))
	=	(1.094 / (1.094 + 0.72))	/	(0.829 / (0.829 + 0.594))
	=	0.603087	/	0.582572
	=	1.0352

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)
	=	(4.088 / 1.183)	/	(3.766 / 1.741)
	=	3.455621	/	2.163125
	=	1.5975

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)
	=	((0.486 + 0.962) / 4.936)	/	((0.605 + 1.012) / 10.462)
	=	0.293355	/	0.154559
	=	1.898

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
	=	(-5.274 - 0	-	-4.501)	/	4.936
	=	-0.156605

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.

Actual Experience has a M-score of -3.28 suggests that the company is unlikely to be a manipulator.

Actual Experience Beneish M-Score Related Terms

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Actual Experience (LSE:ACT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Actual Experience PLC (LSE:ACT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Quay House, The Ambury, Bath, Somerset, GBR, BA1 1UA

Website

https://www.actual-experience.com

Actual Experience PLC operates in the United Kingdom technology sector. Its analytics services aid companies that provide digital services. The company's main product is a cloud analytics platform that transforms the measurements of the digital products and services into a real-time digital voice of the customer quality scores. It fragments its services based on its end-user into the Actual Work, Actual Home, and Actual Work Web trademark products. Actual Work analyses infrastructure and application elements in each delivery path as a supplier in a digital supply chain. The company operates in the United Kingdom, and the United States of America of which it generates maximum revenue from the United States of America.