Live Verdure (ASX:LV1) Beneish M-Score : 241.81 (As of May. 21, 2024)

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What is Live Verdure 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 241.81 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ASX:LV1' s Beneish M-Score Range Over the Past 10 Years
Min: 241.81 Med: 241.81 Max: 241.81
Current: 241.81

During the past 4 years, the highest Beneish M-Score of Live Verdure was 241.81. The lowest was 241.81. And the median was 241.81.

Live Verdure Beneish M-Score Historical Data

The historical data trend for Live Verdure'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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Live Verdure Beneish M-Score Chart

Live Verdure Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

241.81

Live Verdure Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-	-	-	241.81	-

Competitive Comparison of Live Verdure's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Live Verdure'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.

Live Verdure's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Live Verdure's Beneish M-Score distribution charts can be found below:

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

Live Verdure 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 Live Verdure 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 * 1.1325

0.528 * 1.2263

0.404 * 605.8098

0.892 * 1.1744

0.115 * 0.4745

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7403

4.679 * -0.115122

0.327 * 0.6856

241.81

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was A$0.13 Mil.
Revenue was A$2.22 Mil.
Gross Profit was A$1.38 Mil.
Total Current Assets was A$1.27 Mil.
Total Assets was A$2.49 Mil.
Property, Plant and Equipment(Net PPE) was A$0.05 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.04 Mil.
Selling, General, & Admin. Expense(SGA) was A$3.65 Mil.
Total Current Liabilities was A$1.23 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.
Net Income was A$-2.83 Mil.
Gross Profit was A$0.19 Mil.
Cash Flow from Operations was A$-2.74 Mil.

Total Receivables was A$0.10 Mil.
Revenue was A$1.89 Mil.
Gross Profit was A$1.44 Mil.
Total Current Assets was A$1.26 Mil.
Total Assets was A$1.29 Mil.
Property, Plant and Equipment(Net PPE) was A$0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.01 Mil.
Selling, General, & Admin. Expense(SGA) was A$4.20 Mil.
Total Current Liabilities was A$0.92 Mil.
Long-Term Debt & Capital Lease Obligation was A$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)
	=	(0.129 / 2.216)	/	(0.097 / 1.887)
	=	0.058213	/	0.051404
	=	1.1325

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)
	=	(1.441 / 1.887)	/	(1.38 / 2.216)
	=	0.763646	/	0.622744
	=	1.2263

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 - (1.267 + 0.051) / 2.493)	/	(1 - (1.263 + 0.022) / 1.286)
	=	0.47132	/	0.000778
	=	605.8098

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
	=	2.216	/	1.887
	=	1.1744

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))
	=	(0.006 / (0.006 + 0.022))	/	(0.042 / (0.042 + 0.051))
	=	0.214286	/	0.451613
	=	0.4745

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)
	=	(3.653 / 2.216)	/	(4.202 / 1.887)
	=	1.648466	/	2.226815
	=	0.7403

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 + 1.228) / 2.493)	/	((0 + 0.924) / 1.286)
	=	0.492579	/	0.718507
	=	0.6856

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
	=	(-2.834 - 0.189	-	-2.736)	/	2.493
	=	-0.115122

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.

Live Verdure has a M-score of 241.81 signals that the company is likely to be a manipulator.

Live Verdure Beneish M-Score Related Terms

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Live Verdure (ASX:LV1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Live Verdure Ltd (ASX:LV1) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

459 Collins Street, Level 21, Melbourne, VIC, AUS, 3000

Website

http://www.liveverdure.com.au

Live Verdure Ltd is an Australian Health, Wellness and Skincare company making a range of naturally-based products with effective active ingredients. Its products are predominantly sold Direct-to-Consumer (D2C), using the Company's websites. The Company is engaged in providing hemp-based products under 13 seeds brand name. The company focuses on development of Australian hemp food, beauty and nutraceutical products.

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