Ashley (Laura) Holdings (LSE:ALY) Beneish M-Score : -3.56 (As of May. 22, 2024)

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What is Ashley (Laura) Holdings 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 -3.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ashley (Laura) Holdings's Beneish M-Score or its related term are showing as below:

LSE:ALY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56 Med: -2.49 Max: -1.77
Current: -3.56

During the past 13 years, the highest Beneish M-Score of Ashley (Laura) Holdings was -1.77. The lowest was -3.56. And the median was -2.49.

Ashley (Laura) Holdings Beneish M-Score Historical Data

The historical data trend for Ashley (Laura) Holdings'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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Ashley (Laura) Holdings Beneish M-Score Chart

Ashley (Laura) Holdings Annual Data

Trend

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jun17

Jun18

Jun19

Beneish M-Score

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-1.91

-1.82

-2.09

-2.72

-3.56

Ashley (Laura) Holdings Semi-Annual Data
	Jul09	Jan10	Jul10	Jan11	Jul11	Jan12	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19
Beneish M-Score	Get a 7-Day Free Trial															-	-2.72	-	-3.56	-

Competitive Comparison of Ashley (Laura) Holdings's Beneish M-Score

For the Department Stores subindustry, Ashley (Laura) Holdings'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.

Ashley (Laura) Holdings's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Ashley (Laura) Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ashley (Laura) Holdings's Beneish M-Score falls into.

Ashley (Laura) Holdings 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 Ashley (Laura) Holdings 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 * 0.7982

0.528 * 1.0801

0.404 * 0.8528

0.892 * 0.904

0.115 * 0.2817

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.099

4.679 * -0.151351

0.327 * 0.8408

-3.52

This Year (Jun19) TTM:

Last Year (Jun18) TTM:

Total Receivables was £5.7 Mil.
Revenue was £232.5 Mil.
Gross Profit was £82.1 Mil.
Total Current Assets was £62.5 Mil.
Total Assets was £74.0 Mil.
Property, Plant and Equipment(Net PPE) was £7.6 Mil.
Depreciation, Depletion and Amortization(DDA) was £2.7 Mil.
Selling, General, & Admin. Expense(SGA) was £91.1 Mil.
Total Current Liabilities was £38.1 Mil.
Long-Term Debt & Capital Lease Obligation was £0.0 Mil.
Net Income was £-14.0 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £-2.8 Mil.

Total Receivables was £7.9 Mil.
Revenue was £257.2 Mil.
Gross Profit was £98.1 Mil.
Total Current Assets was £73.0 Mil.
Total Assets was £124.6 Mil.
Property, Plant and Equipment(Net PPE) was £43.9 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.5 Mil.
Selling, General, & Admin. Expense(SGA) was £91.7 Mil.
Total Current Liabilities was £57.5 Mil.
Long-Term Debt & Capital Lease Obligation was £18.8 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)
	=	(5.7 / 232.5)	/	(7.9 / 257.2)
	=	0.024516	/	0.030715
	=	0.7982

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)
	=	(98.1 / 257.2)	/	(82.1 / 232.5)
	=	0.381415	/	0.353118
	=	1.0801

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 - (62.5 + 7.6) / 74)	/	(1 - (73 + 43.9) / 124.6)
	=	0.052703	/	0.061798
	=	0.8528

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
	=	232.5	/	257.2
	=	0.904

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))
	=	(3.5 / (3.5 + 43.9))	/	(2.7 / (2.7 + 7.6))
	=	0.07384	/	0.262136
	=	0.2817

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)
	=	(91.1 / 232.5)	/	(91.7 / 257.2)
	=	0.391828	/	0.356532
	=	1.099

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 + 38.1) / 74)	/	((18.8 + 57.5) / 124.6)
	=	0.514865	/	0.61236
	=	0.8408

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
	=	(-14 - 0	-	-2.8)	/	74
	=	-0.151351

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.

Ashley (Laura) Holdings has a M-score of -3.52 suggests that the company is unlikely to be a manipulator.

Ashley (Laura) Holdings Beneish M-Score Related Terms

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Ashley (Laura) Holdings (LSE:ALY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Ashley (Laura) Holdings PLC (LSE:ALY) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

27 Bagleys Lane, Fulham, London, GBR, SW6 2QA

Website

http://www.lauraashley.com

Ashley (Laura) Holdings PLC is an international lifestyle brand, which specializes in retailing furniture, home accessories, decorating and fashion products. Its two operating segments are Retail and Non-Retail. Retail revenue reflects sales through its Stores; E-Commerce and Mail Order and Hotel. Its Non-retail revenue includes Licensing, Franchising, and Manufacturing. The company generates maximum revenue from the Retail segment which includes Stores. Geographically, it derives a majority of revenue from the UK, Ireland and France and also has a presence in Japan and the Rest of the World.

Ashley (Laura) Holdings (LSE:ALY) Headlines

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