Patagonia Gold Corp Stock Beneish M Score

PGDC Stock  CAD 0.04  0.00  0.00%   
This module uses fundamental data of Patagonia Gold to approximate the value of its Beneish M Score. Patagonia Gold M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Patagonia Gold Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
  
At this time, Patagonia Gold's Net Debt is fairly stable compared to the past year. Short Term Debt is likely to climb to about 10.9 M in 2024, whereas Long Term Debt is likely to drop slightly above 9.9 M in 2024. At this time, Patagonia Gold's Average Payables is fairly stable compared to the past year. Inventory Turnover is likely to climb to 4.44 in 2024, whereas PTB Ratio is likely to drop 0.95 in 2024.
At this time, Patagonia Gold's M Score is inapplicable. The earnings manipulation may begin if Patagonia Gold's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Patagonia Gold executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Patagonia Gold's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.43
Beneish M Score - Inapplicable
Elasticity of Receivables

0.88

Focus
Asset Quality

0.29

Focus
Expense Coverage

0.97

Focus
Gross Margin Strengs

0.96

Focus
Accruals Factor

0.97

Focus
Depreciation Resistance

1.43

Focus
Net Sales Growth

1.32

Focus
Financial Leverage Condition

1.67

Focus

Patagonia Gold Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Patagonia Gold's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables3.4 M2.9 M
Fairly Up
Pretty Stable
Total Revenue21.5 M16.3 M
Significantly Up
Pretty Stable
Total Assets36.9 M66.4 M
Way Down
Slightly volatile
Total Current Assets8.6 M7.5 M
Moderately Up
Very volatile
Non Current Assets Total61.8 M58.9 M
Sufficiently Up
Slightly volatile
Property Plant Equipment28.1 M32.9 M
Fairly Down
Pretty Stable
Depreciation And Amortization2.5 M4.3 M
Way Down
Slightly volatile
Selling General Administrative6.1 M4.7 M
Significantly Up
Pretty Stable
Total Current Liabilities12.1 M16.4 M
Way Down
Slightly volatile
Short Term Debt10.9 M8.3 M
Significantly Up
Slightly volatile
Long Term Debt9.9 M18.1 M
Way Down
Slightly volatile
Short Term Investments1.4 M1.6 M
Fairly Down
Slightly volatile
Long Term Investments16.4 K17.2 K
Notably Down
Very volatile

Patagonia Gold Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Patagonia Gold's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Patagonia Gold in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Patagonia Gold's degree of accounting gimmicks and manipulations.

About Patagonia Gold Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

2.47 Million

At this time, Patagonia Gold's Depreciation And Amortization is fairly stable compared to the past year.

Patagonia Gold Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Patagonia Gold. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables4.8M1.5M2.0M2.5M2.9M3.4M
Total Revenue48.1M21.9M19.8M18.1M16.3M21.5M
Total Assets55.9M54.8M60.1M57.7M66.4M36.9M
Total Current Assets11.5M5.5M6.1M6.6M7.5M8.6M
Net Debt22.5M26.7M24.1M22.7M26.1M27.4M
Short Term Debt22.5M15.3M10.0M7.2M8.3M10.9M
Long Term Debt674K12.0M14.9M15.8M18.1M9.9M
Operating Income(7.0M)(5.7M)767K(6.3M)(5.7M)(6.0M)
Investments(12.5M)(880K)(1.5M)(3.9M)(4.5M)(4.7M)
Gross Profit Margin0.530.250.33(0.23)(0.29)(0.28)

About Patagonia Gold Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Patagonia Gold Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Patagonia Gold using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Patagonia Gold Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Additional Tools for Patagonia Stock Analysis

When running Patagonia Gold's price analysis, check to measure Patagonia Gold's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Patagonia Gold is operating at the current time. Most of Patagonia Gold's value examination focuses on studying past and present price action to predict the probability of Patagonia Gold's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Patagonia Gold's price. Additionally, you may evaluate how the addition of Patagonia Gold to your portfolios can decrease your overall portfolio volatility.