Norseman Gold (LSE:NGL) Beneish M-Score : 0.00 (As of Jun. 10, 2024)

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What is Norseman Gold 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.

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

During the past 6 years, the highest Beneish M-Score of Norseman Gold was 0.00. The lowest was -6.39. And the median was -6.39.

Norseman Gold Beneish M-Score Historical Data

The historical data trend for Norseman Gold'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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Norseman Gold Beneish M-Score Chart

Norseman Gold Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Beneish M-Score

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-6.39

Norseman Gold Semi-Annual Data
	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
Beneish M-Score	Get a 7-Day Free Trial			-	-6.39	-	-	-

Competitive Comparison of Norseman Gold's Beneish M-Score

For the Gold subindustry, Norseman Gold'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.

Norseman Gold's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Norseman Gold's Beneish M-Score distribution charts can be found below:

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

Norseman Gold 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 Norseman Gold 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

This Year (Jun14) TTM:

Last Year (Jun13) TTM:

Total Receivables was £2.08 Mil.
Revenue was £12.90 Mil.
Gross Profit was £1.87 Mil.
Total Current Assets was £4.09 Mil.
Total Assets was £4.84 Mil.
Property, Plant and Equipment(Net PPE) was £0.75 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.08 Mil.
Selling, General, & Admin. Expense(SGA) was £9.38 Mil.
Total Current Liabilities was £44.74 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £-3.80 Mil.
Gross Profit was £4.16 Mil.
Cash Flow from Operations was £-4.06 Mil.

Total Receivables was £0.68 Mil.
Revenue was £7.71 Mil.
Gross Profit was £-20.52 Mil.
Total Current Assets was £8.39 Mil.
Total Assets was £9.01 Mil.
Property, Plant and Equipment(Net PPE) was £0.62 Mil.
Depreciation, Depletion and Amortization(DDA) was £2.24 Mil.
Selling, General, & Admin. Expense(SGA) was £21.02 Mil.
Total Current Liabilities was £42.52 Mil.
Long-Term Debt & Capital Lease Obligation was £6.09 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)
	=	(2.081 / 12.895)	/	(0.677 / 7.707)
	=	0.16138	/	0.087842
	=

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)
	=	(-20.521 / 7.707)	/	(1.873 / 12.895)
	=	-2.662644	/	0.14525
	=

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 - (4.086 + 0.753) / 4.838)	/	(1 - (8.388 + 0.624) / 9.012)
	=	-0.000207	/	0
	=

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
	=	12.895	/	7.707
	=

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))
	=	(2.24 / (2.24 + 0.624))	/	(0.083 / (0.083 + 0.753))
	=	0.782123	/	0.099282
	=

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)
	=	(9.38 / 12.895)	/	(21.019 / 7.707)
	=	0.727414	/	2.727261
	=

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 + 44.742) / 4.838)	/	((6.091 + 42.524) / 9.012)
	=	9.248036	/	5.394474
	=

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
	=	(-3.798 - 4.158	-	-4.057)	/	4.838
	=	-0.805912

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.

Norseman Gold Beneish M-Score Related Terms

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Norseman Gold (LSE:NGL) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.norsemangoldplc.com

Norseman Gold PLC is engaged in the production, exploration, evaluation and development of mineral resources. It is involved in the operation of Central Norseman Gold Corporation Ltd (the Norseman Project). The Norseman Project is located adjacent to the Norseman township, approximately 725 kilometres east of Perth, Western Australia. Current operations source ore from the Bullen underground mine and the Harlequin underground mine using underground mining methods of airleg up dip room and pillar stoping and long-hole stoping.