FOPE SpA (MIL:FPE) Beneish M-Score : -2.01 (As of May. 20, 2024)

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What is FOPE SpA 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 -2.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:FPE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87 Med: -2.21 Max: -1.63
Current: -2.01

During the past 9 years, the highest Beneish M-Score of FOPE SpA was -1.63. The lowest was -2.87. And the median was -2.21.

FOPE SpA Beneish M-Score Historical Data

The historical data trend for FOPE SpA'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.

* Premium members only.

FOPE SpA Beneish M-Score Chart

FOPE SpA Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.46

-2.56

-2.19

-1.63

-2.01

FOPE SpA Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial												-2.19	-	-1.63	-	-2.01

Competitive Comparison of FOPE SpA's Beneish M-Score

For the Luxury Goods subindustry, FOPE SpA'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.

FOPE SpA's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, FOPE SpA's Beneish M-Score distribution charts can be found below:

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

FOPE SpA 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 FOPE SpA 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 * 1.0826

0.528 * 0.9756

0.404 * 0.9552

0.892 * 1.0741

0.115 * 0.8945

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.069695

0.327 * 0.8518

-2.01

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €14.93 Mil.
Revenue was €66.77 Mil.
Gross Profit was €22.05 Mil.
Total Current Assets was €45.39 Mil.
Total Assets was €60.16 Mil.
Property, Plant and Equipment(Net PPE) was €10.41 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.29 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €12.08 Mil.
Long-Term Debt & Capital Lease Obligation was €5.39 Mil.
Net Income was €10.03 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €5.84 Mil.

Total Receivables was €12.84 Mil.
Revenue was €62.16 Mil.
Gross Profit was €20.03 Mil.
Total Current Assets was €41.02 Mil.
Total Assets was €55.19 Mil.
Property, Plant and Equipment(Net PPE) was €9.97 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.92 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €13.81 Mil.
Long-Term Debt & Capital Lease Obligation was €5.00 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)
	=	(14.927 / 66.768)	/	(12.837 / 62.161)
	=	0.223565	/	0.206512
	=	1.0826

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)
	=	(20.025 / 62.161)	/	(22.046 / 66.768)
	=	0.322147	/	0.330188
	=	0.9756

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 - (45.385 + 10.41) / 60.162)	/	(1 - (41.021 + 9.974) / 55.189)
	=	0.072587	/	0.075993
	=	0.9552

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
	=	66.768	/	62.161
	=	1.0741

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))
	=	(1.919 / (1.919 + 9.974))	/	(2.291 / (2.291 + 10.41))
	=	0.161355	/	0.180379
	=	0.8945

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 / 66.768)	/	(0 / 62.161)
	=	0	/	0
	=	1

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)
	=	((5.386 + 12.082) / 60.162)	/	((4.997 + 13.814) / 55.189)
	=	0.290349	/	0.340847
	=	0.8518

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
	=	(10.031 - 0	-	5.838)	/	60.162
	=	0.069695

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.

FOPE SpA has a M-score of -2.01 suggests that the company is unlikely to be a manipulator.

FOPE SpA Beneish M-Score Related Terms

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