Torchlight Energy Resources (Torchlight Energy Resources) Beneish M-Score : 0.00 (As of Apr. 26, 2024)

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What is Torchlight Energy Resources 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 Torchlight Energy Resources's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Torchlight Energy Resources was 0.00. The lowest was 0.00. And the median was 0.00.

Torchlight Energy Resources Beneish M-Score Historical Data

The historical data trend for Torchlight Energy Resources'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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Torchlight Energy Resources Beneish M-Score Chart

Torchlight Energy Resources Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Beneish M-Score

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-3.06

-3.21

-3.74

-4.80

Torchlight Energy Resources Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
Beneish M-Score	Get a 7-Day Free Trial															-4.73	-	-	-	-10,000,000.00

Competitive Comparison of Torchlight Energy Resources's Beneish M-Score

For the Oil & Gas E&P subindustry, Torchlight Energy Resources'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.

Torchlight Energy Resources's Beneish M-Score Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Torchlight Energy Resources's Beneish M-Score falls into.

Torchlight Energy Resources 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 Torchlight Energy Resources 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 (Mar21) TTM:

Last Year (Mar20) TTM:

Total Receivables was $10.33 Mil.
Revenue was 0.002 + 0.002 + 0.062 + 0.045 = $0.11 Mil.
Gross Profit was -0.012 + -0.033 + -0.039 + -0.312 = $-0.40 Mil.
Total Current Assets was $23.54 Mil.
Total Assets was $56.02 Mil.
Property, Plant and Equipment(Net PPE) was $31.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.37 Mil.
Selling, General, & Admin. Expense(SGA) was $4.20 Mil.
Total Current Liabilities was $0.69 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -2.056 + -4.904 + -0.885 + -3.299 = $-11.14 Mil.
Non Operating Income was 0.077 + -3.275 + 0 + -2.108 = $-5.31 Mil.
Cash Flow from Operations was -3.537 + -0.041 + -0.34 + -0.642 = $-4.56 Mil.

Total Receivables was $0.29 Mil.
Revenue was 0.085 + 0.127 + 0.071 + 0.237 = $0.52 Mil.
Gross Profit was -0.431 + -4.004 + -0.073 + -0.019 = $-4.53 Mil.
Total Current Assets was $0.44 Mil.
Total Assets was $34.39 Mil.
Property, Plant and Equipment(Net PPE) was $33.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.65 Mil.
Selling, General, & Admin. Expense(SGA) was $3.28 Mil.
Total Current Liabilities was $3.68 Mil.
Long-Term Debt & Capital Lease Obligation was $15.26 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)
	=	(10.327 / 0.111)	/	(0.294 / 0.52)
	=	93.036036	/	0.565385
	=

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)
	=	(-4.527 / 0.52)	/	(-0.396 / 0.111)
	=	-8.705769	/	-3.567568
	=

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 - (23.536 + 31.446) / 56.015)	/	(1 - (0.438 + 33.953) / 34.391)
	=	0.018441	/	-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
	=	0.111	/	0.52
	=

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))
	=	(4.654 / (4.654 + 33.953))	/	(0.373 / (0.373 + 31.446))
	=	0.120548	/	0.011723
	=

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)
	=	(4.202 / 0.111)	/	(3.278 / 0.52)
	=	37.855856	/	6.303846
	=

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 + 0.69) / 56.015)	/	((15.257 + 3.682) / 34.391)
	=	0.012318	/	0.550696
	=

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
	=	(-11.144 - -5.306	-	-4.56)	/	56.015
	=	-0.022815

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.

Torchlight Energy Resources Beneish M-Score Related Terms

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Torchlight Energy Resources (Torchlight Energy Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Torchlight Energy Resources Inc (NAS:TRCH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5700 W. Plano Parkway, Suite 3600, Plano, TX, USA, 75093

Website

https://www.torchlightenergy.com

Torchlight Energy Resources Inc acquires, explores, exploits, and develops oil and natural gas properties in the United States. It is primarily focused on the acquisition of early-stage projects, the development and delineation of the projects, and then the monetization of those assets once these activities are completed. The firm's primary interests include the Orogrande Project in Hudspeth County, Texas and the Hazel Project in the Midland Basin.

Executives

Alexandre Zyngier	director	5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Greg Mccabe	director, 10 percent owner	500 WEST TEXAS AVE., SUITE 890, MIDLAND TX 79701
Roger N Wurtele	officer: Chief Financial Officer	5700 WEST PLANO PARKWAY, SUITE 3600, PLANO TX 75093
John A. Brda	director, officer: President and CEO	1425 FRONTENAY, WARSON WOODS MO 63122
Michael James Graves	director	5700 PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Robert Lance Cook	director	5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75903
Robert David Newton	director	5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Mccabe Petroleum Corp	10 percent owner	P.O. BOX 11188, MIDLAND TX 79702
Ernest Scott Kimbrough	director	5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Shockey Eunis Lorance Jr	director	10827 STONE CANYON ROAD, DALLAS TX 75230
Mcandrew Willard Greer Iii	other: Former Officer and Director	5700 WEST PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Jerry D Barney	10 percent owner	841 ANDREW RUN, CANYON LAKE TX 78133
Edward J Devereaux	director	1713 VILLA COURT, CORINTH TX 76210
G Mc Exploration, Llc	10 percent owner	400 PINE STREET, SUITE 700, ABILENE TX 79601
Robert Kenneth Dulin	10 percent owner	8449 GREENWOOD DRIVE, NIWOT CO 80503