UK Oil & Gas (LSE:UKOG) Beneish M-Score : -1.74 (As of May. 11, 2024)

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What is UK Oil & Gas 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 -1.74 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for UK Oil & Gas's Beneish M-Score or its related term are showing as below:

LSE:UKOG' s Beneish M-Score Range Over the Past 10 Years
Min: -6.99 Med: -3.18 Max: 27.09
Current: -1.74

During the past 13 years, the highest Beneish M-Score of UK Oil & Gas was 27.09. The lowest was -6.99. And the median was -3.18.

UK Oil & Gas Beneish M-Score Historical Data

The historical data trend for UK Oil & Gas'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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UK Oil & Gas Beneish M-Score Chart

UK Oil & Gas Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

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-3.30

-3.05

-6.99

-1.74

UK Oil & Gas Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-	-6.99	-	-1.74

Competitive Comparison of UK Oil & Gas's Beneish M-Score

For the Oil & Gas E&P subindustry, UK Oil & Gas'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.

UK Oil & Gas's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, UK Oil & Gas's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where UK Oil & Gas's Beneish M-Score falls into.

UK Oil & Gas 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 UK Oil & Gas 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 * 1.1666

0.528 * 0.974

0.404 * -0.1471

0.892 * 0.864

0.115 * 14.0812

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4538

4.679 * -0.021261

0.327 * 1.4441

-1.74

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was £0.75 Mil.
Revenue was £1.54 Mil.
Gross Profit was £0.28 Mil.
Total Current Assets was £2.64 Mil.
Total Assets was £39.56 Mil.
Property, Plant and Equipment(Net PPE) was £36.92 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.24 Mil.
Selling, General, & Admin. Expense(SGA) was £3.32 Mil.
Total Current Liabilities was £5.42 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £-3.78 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-2.94 Mil.

Total Receivables was £0.75 Mil.
Revenue was £1.78 Mil.
Gross Profit was £0.31 Mil.
Total Current Assets was £5.35 Mil.
Total Assets was £41.27 Mil.
Property, Plant and Equipment(Net PPE) was £35.92 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.66 Mil.
Selling, General, & Admin. Expense(SGA) was £2.64 Mil.
Total Current Liabilities was £3.92 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 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)
	=	(0.754 / 1.538)	/	(0.748 / 1.78)
	=	0.490247	/	0.420225
	=	1.1666

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)
	=	(0.31 / 1.78)	/	(0.275 / 1.538)
	=	0.174157	/	0.178804
	=	0.974

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 - (2.64 + 36.917) / 39.556)	/	(1 - (5.346 + 35.916) / 41.269)
	=	-2.5E-5	/	0.00017
	=	-0.1471

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
	=	1.538	/	1.78
	=	0.864

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))
	=	(3.659 / (3.659 + 35.916))	/	(0.244 / (0.244 + 36.917))
	=	0.092457	/	0.006566
	=	14.0812

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)
	=	(3.32 / 1.538)	/	(2.643 / 1.78)
	=	2.158648	/	1.484831
	=	1.4538

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 + 5.419) / 39.556)	/	((0 + 3.915) / 41.269)
	=	0.136996	/	0.094865
	=	1.4441

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
	=	(-3.777 - 0	-	-2.936)	/	39.556
	=	-0.021261

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.

UK Oil & Gas has a M-score of -1.74 signals that the company is likely to be a manipulator.

UK Oil & Gas Beneish M-Score Related Terms

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UK Oil & Gas (LSE:UKOG) Business Description

Industry

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Address

20 Primrose Street, 8th Floor, The Broadgate Tower, London, GBR, EC2A 2EW

Website

https://www.ukogplc.com

UK Oil & Gas PLC operates as an oil and gas exploration company. Its principal activity is to acquire a portfolio of direct and indirect interests in the exploration, development, and production of oil and gas assets. The company's current operational focus is on the UK and Turkey onshore sectors. Its current UK onshore portfolio consists of direct and indirect interests in six oil and gas exploration, appraisal, development, and production assets, all situated within the Weald and Purbeck-Wight Basins of southern England. The company has three reportable segments: Oil exploration and production which includes producing business activities; Oil exploration and evaluation which includes non-producing activities; Head Office, corporate and administrative, including parent company activities.

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