Argo Blockchain (LSE:ARB) Beneish M-Score : -11.84 (As of May. 13, 2024)

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What is Argo Blockchain 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 -11.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ARB' s Beneish M-Score Range Over the Past 10 Years
Min: -14.03 Med: -12.94 Max: -11.84
Current: -11.84

During the past 6 years, the highest Beneish M-Score of Argo Blockchain was -11.84. The lowest was -14.03. And the median was -12.94.

Argo Blockchain Beneish M-Score Historical Data

The historical data trend for Argo Blockchain'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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Argo Blockchain Beneish M-Score Chart

Argo Blockchain Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-14.03

-11.84

Argo Blockchain Quarterly Data
	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Mar21	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial												-14.03	-15.80	-45.82	-	-11.84

Competitive Comparison of Argo Blockchain's Beneish M-Score

For the Capital Markets subindustry, Argo Blockchain'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.

Argo Blockchain's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Argo Blockchain's Beneish M-Score distribution charts can be found below:

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

Argo Blockchain 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 Argo Blockchain 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

0.528 * -11.303

0.404 * 0.3474

0.892 * 0.9811

0.115 * 0.4006

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.517927

0.327 * 1.2843

-11.84

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £0.89 Mil.
Revenue was 13.91 + 11.985 + 11.35 + 9.425 = £46.67 Mil.
Gross Profit was 4.711 + -0.608 + -0.645 + -0.458 = £3.00 Mil.
Total Current Assets was £11.79 Mil.
Total Assets was £59.99 Mil.
Property, Plant and Equipment(Net PPE) was £47.19 Mil.
Depreciation, Depletion and Amortization(DDA) was £16.25 Mil.
Selling, General, & Admin. Expense(SGA) was £0.00 Mil.
Total Current Liabilities was £21.79 Mil.
Long-Term Debt & Capital Lease Obligation was £38.08 Mil.
Net Income was -7.025 + -7.997 + -5.965 + -7.177 = £-28.16 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = £0.00 Mil.
Cash Flow from Operations was 4.516 + -1.122 + 1.899 + -2.385 = £2.91 Mil.

Total Receivables was £0.00 Mil.
Revenue was 8.804 + 11.669 + 12.285 + 14.812 = £47.57 Mil.
Gross Profit was -0.067 + 1.862 + -37.815 + 1.457 = £-34.56 Mil.
Total Current Assets was £22.44 Mil.
Total Assets was £90.50 Mil.
Property, Plant and Equipment(Net PPE) was £63.64 Mil.
Depreciation, Depletion and Amortization(DDA) was £7.28 Mil.
Selling, General, & Admin. Expense(SGA) was £0.00 Mil.
Total Current Liabilities was £17.56 Mil.
Long-Term Debt & Capital Lease Obligation was £52.76 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)
	=	(0.893 / 46.67)	/	(0 / 47.57)
	=	0.019134	/	0
	=	1

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)
	=	(-34.563 / 47.57)	/	(3 / 46.67)
	=	-0.726571	/	0.064281
	=	-11.303

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 - (11.79 + 47.186) / 59.993)	/	(1 - (22.444 + 63.641) / 90.501)
	=	0.016952	/	0.048795
	=	0.3474

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
	=	46.67	/	47.57
	=	0.9811

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))
	=	(7.28 / (7.28 + 63.641))	/	(16.254 / (16.254 + 47.186))
	=	0.102649	/	0.256211
	=	0.4006

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 / 46.67)	/	(0 / 47.57)
	=	0	/	0
	=	1

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)
	=	((38.076 + 21.792) / 59.993)	/	((52.762 + 17.561) / 90.501)
	=	0.997916	/	0.777041
	=	1.2843

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
	=	(-28.164 - 0	-	2.908)	/	59.993
	=	-0.517927

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.

Argo Blockchain has a M-score of -11.84 suggests that the company is unlikely to be a manipulator.

Argo Blockchain Beneish M-Score Related Terms

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Argo Blockchain (LSE:ARB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Argo Blockchain PLC (LSE:ARB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ARBK:USA ARBKF:USA ARBl:UK 0XP:Germany

Address

27/28 Eastcastle Street, Eastcastle House, London, GBR, W1W 8DH

Website

https://www.argoblockchain.com

Argo Blockchain PLC is a global data center business that provides a powerful and efficient platform for cryptocurrency mining operations. The company has operations in strategic locations in North America.