Mpay (WAR:MPY) Beneish M-Score : -1.43 (As of May. 27, 2024)

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What is Mpay 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 -1.43 higher than -1.78, which implies that the company might have manipulated its financial results.

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

WAR:MPY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.44 Med: -1.84 Max: 31.13
Current: -1.43

During the past 13 years, the highest Beneish M-Score of Mpay was 31.13. The lowest was -4.44. And the median was -1.84.

Mpay Beneish M-Score Historical Data

The historical data trend for Mpay'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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Mpay Beneish M-Score Chart

Mpay Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.33

-2.06

0.80

-1.57

-1.62

Mpay Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.05	-2.99	-1.64	-1.62	-1.43

Competitive Comparison of Mpay's Beneish M-Score

For the Software - Infrastructure subindustry, Mpay'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.

Mpay's Beneish M-Score Distribution in the Software Industry

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

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

Mpay 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 Mpay 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 * 1.332

0.528 * 0.8436

0.404 * 0.5564

0.892 * 1.1569

0.115 * 1.1039

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * 0.142298

0.327 * 0.9625

-1.43

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was zł24.81 Mil.
Revenue was 8.576 + 9.435 + 8.754 + 9.197 = zł35.96 Mil.
Gross Profit was 1.035 + 1.396 + 0.859 + 0.842 = zł4.13 Mil.
Total Current Assets was zł30.22 Mil.
Total Assets was zł36.26 Mil.
Property, Plant and Equipment(Net PPE) was zł0.33 Mil.
Depreciation, Depletion and Amortization(DDA) was zł0.71 Mil.
Selling, General, & Admin. Expense(SGA) was zł0.00 Mil.
Total Current Liabilities was zł16.11 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 Mil.
Net Income was 0.069 + 0.193 + 0.019 + 0.007 = zł0.29 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.00 Mil.
Cash Flow from Operations was -2.067 + -1.854 + -0.26 + -0.691 = zł-4.87 Mil.

Total Receivables was zł16.10 Mil.
Revenue was 8.956 + 8.216 + 7.406 + 6.507 = zł31.09 Mil.
Gross Profit was 0.838 + 0.671 + 0.77 + 0.734 = zł3.01 Mil.
Total Current Assets was zł20.44 Mil.
Total Assets was zł28.79 Mil.
Property, Plant and Equipment(Net PPE) was zł0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was zł0.62 Mil.
Selling, General, & Admin. Expense(SGA) was zł1.41 Mil.
Total Current Liabilities was zł13.29 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 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)
	=	(24.813 / 35.962)	/	(16.102 / 31.085)
	=	0.689978	/	0.517999
	=	1.332

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)
	=	(3.013 / 31.085)	/	(4.132 / 35.962)
	=	0.096928	/	0.114899
	=	0.8436

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 - (30.224 + 0.325) / 36.262)	/	(1 - (20.438 + 0.197) / 28.786)
	=	0.157548	/	0.283158
	=	0.5564

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
	=	35.962	/	31.085
	=	1.1569

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))
	=	(0.618 / (0.618 + 0.197))	/	(0.713 / (0.713 + 0.325))
	=	0.758282	/	0.686898
	=	1.1039

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 / 35.962)	/	(1.412 / 31.085)
	=	0	/	0.045424
	=	0

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 + 16.114) / 36.262)	/	((0 + 13.29) / 28.786)
	=	0.444377	/	0.461683
	=	0.9625

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
	=	(0.288 - 0	-	-4.872)	/	36.262
	=	0.142298

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.

Mpay has a M-score of -1.43 signals that the company is likely to be a manipulator.

Mpay Beneish M-Score Related Terms

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Mpay (WAR:MPY) Business Description

Industry

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8NJ:Germany

Address

Ulica Jasna 1 lok. 421, Warsaw, POL, 00-013

Website

http://www.mpay.pl

Mpay SA is a Polish supplier of m-payment solutions. The company creates and develops instruments enabling the execution of financial transactions using mobile devices. The flagship product of the company is the mPay application enabling buying communication tickets, regulating payments for paid parking or powering prepaid phone accounts using a smartphone or tablet.

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