Mayfield Childcare (ASX:MFD) Beneish M-Score : -2.96 (As of May. 21, 2024)

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What is Mayfield Childcare 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.

Good Sign:

Beneish M-Score -2.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:MFD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.63 Max: -1.68
Current: -2.96

During the past 8 years, the highest Beneish M-Score of Mayfield Childcare was -1.68. The lowest was -3.21. And the median was -2.63.

Mayfield Childcare Beneish M-Score Historical Data

The historical data trend for Mayfield Childcare'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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Mayfield Childcare Beneish M-Score Chart

Mayfield Childcare Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.00

-3.21

-1.68

-1.98

-2.96

Mayfield Childcare Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial										-1.68	-	-1.98	-	-2.96

Competitive Comparison of Mayfield Childcare's Beneish M-Score

For the Personal Services subindustry, Mayfield Childcare'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.

Mayfield Childcare's Beneish M-Score Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Mayfield Childcare's Beneish M-Score distribution charts can be found below:

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

Mayfield Childcare 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 Mayfield Childcare 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 * 0.6778

0.528 * 1

0.404 * 1.004

0.892 * 1.1091

0.115 * 1.0117

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.19

4.679 * -0.049901

0.327 * 1.0592

-2.96

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was A$2.99 Mil.
Revenue was A$76.51 Mil.
Gross Profit was A$76.51 Mil.
Total Current Assets was A$4.11 Mil.
Total Assets was A$235.71 Mil.
Property, Plant and Equipment(Net PPE) was A$148.78 Mil.
Depreciation, Depletion and Amortization(DDA) was A$10.92 Mil.
Selling, General, & Admin. Expense(SGA) was A$55.76 Mil.
Total Current Liabilities was A$24.14 Mil.
Long-Term Debt & Capital Lease Obligation was A$146.05 Mil.
Net Income was A$-1.44 Mil.
Gross Profit was A$1.13 Mil.
Cash Flow from Operations was A$9.20 Mil.

Total Receivables was A$3.98 Mil.
Revenue was A$68.98 Mil.
Gross Profit was A$68.98 Mil.
Total Current Assets was A$7.24 Mil.
Total Assets was A$219.22 Mil.
Property, Plant and Equipment(Net PPE) was A$135.27 Mil.
Depreciation, Depletion and Amortization(DDA) was A$10.05 Mil.
Selling, General, & Admin. Expense(SGA) was A$42.25 Mil.
Total Current Liabilities was A$14.70 Mil.
Long-Term Debt & Capital Lease Obligation was A$134.74 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)
	=	(2.993 / 76.508)	/	(3.981 / 68.979)
	=	0.03912	/	0.057713
	=	0.6778

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)
	=	(68.979 / 68.979)	/	(76.508 / 76.508)
	=	1	/	1
	=	1

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 - (4.111 + 148.775) / 235.708)	/	(1 - (7.235 + 135.267) / 219.22)
	=	0.351375	/	0.349959
	=	1.004

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
	=	76.508	/	68.979
	=	1.1091

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))
	=	(10.051 / (10.051 + 135.267))	/	(10.918 / (10.918 + 148.775))
	=	0.069166	/	0.068369
	=	1.0117

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)
	=	(55.761 / 76.508)	/	(42.248 / 68.979)
	=	0.728826	/	0.612476
	=	1.19

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)
	=	((146.045 + 24.135) / 235.708)	/	((134.738 + 14.697) / 219.22)
	=	0.721995	/	0.681667
	=	1.0592

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
	=	(-1.435 - 1.132	-	9.195)	/	235.708
	=	-0.049901

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.

Mayfield Childcare has a M-score of -2.96 suggests that the company is unlikely to be a manipulator.

Mayfield Childcare Beneish M-Score Related Terms

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Mayfield Childcare (ASX:MFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Mayfield Childcare Ltd (ASX:MFD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

207-213 Waverley Road, Suite 2, Ground Floor, Malvern East, VIC, AUS, 3145

Website

https://www.mayfieldchildcare.com.au

Mayfield Childcare Ltd provides a combination of care and education services for children. The company owns long day childcare centers located in and around metropolitan Melbourne. It continues to operate in one operating segment, as a long day childcare services provider.