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Truworths International (NAM:TRW) Beneish M-Score : -1.88 (As of May. 12, 2024)


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What is Truworths International 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 -1.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAM:TRW' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Med: -2.09   Max: -1.07
Current: -1.88

During the past 13 years, the highest Beneish M-Score of Truworths International was -1.07. The lowest was -4.07. And the median was -2.09.


Truworths International Beneish M-Score Historical Data

The historical data trend for Truworths International'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.

Truworths International Beneish M-Score Chart

Truworths International Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.13 -4.07 -2.65 -2.10 -1.88

Truworths International Semi-Annual Data
Jun14 Dec14 Jun15 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -2.10 - -1.88 -

Competitive Comparison of Truworths International's Beneish M-Score

For the Apparel Retail subindustry, Truworths International'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.


Truworths International's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

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



Truworths International 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 Truworths International for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0041+0.528 * 1.0187+0.404 * 0.8881+0.892 * 1.1123+0.115 * 1.0689
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9948+4.679 * 0.107977-0.327 * 0.954
=-1.88

* 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.

This Year (Jun23) TTM:Last Year (Jun22) TTM:
Total Receivables was R5,546 Mil.
Revenue was R19,894 Mil.
Gross Profit was R10,449 Mil.
Total Current Assets was R9,417 Mil.
Total Assets was R16,133 Mil.
Property, Plant and Equipment(Net PPE) was R5,398 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,374 Mil.
Selling, General, & Admin. Expense(SGA) was R1,601 Mil.
Total Current Liabilities was R5,242 Mil.
Long-Term Debt & Capital Lease Obligation was R2,996 Mil.
Net Income was R3,275 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R1,533 Mil.
Total Receivables was R4,966 Mil.
Revenue was R17,886 Mil.
Gross Profit was R9,570 Mil.
Total Current Assets was R7,971 Mil.
Total Assets was R13,491 Mil.
Property, Plant and Equipment(Net PPE) was R4,279 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,185 Mil.
Selling, General, & Admin. Expense(SGA) was R1,447 Mil.
Total Current Liabilities was R4,757 Mil.
Long-Term Debt & Capital Lease Obligation was R2,464 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)
=(5546 / 19894) / (4966 / 17886)
=0.278778 / 0.277647
=1.0041

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)
=(9570 / 17886) / (10449 / 19894)
=0.535055 / 0.525234
=1.0187

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 - (9417 + 5398) / 16133) / (1 - (7971 + 4279) / 13491)
=0.081696 / 0.091987
=0.8881

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
=19894 / 17886
=1.1123

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))
=(1185 / (1185 + 4279)) / (1374 / (1374 + 5398))
=0.216874 / 0.202894
=1.0689

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)
=(1601 / 19894) / (1447 / 17886)
=0.080477 / 0.080901
=0.9948

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)
=((2996 + 5242) / 16133) / ((2464 + 4757) / 13491)
=0.51063 / 0.535246
=0.954

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
=(3275 - 0 - 1533) / 16133
=0.107977

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.

Truworths International has a M-score of -1.88 suggests that the company is unlikely to be a manipulator.


Truworths International Beneish M-Score Related Terms

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Truworths International (NAM:TRW) Business Description

Traded in Other Exchanges
Address
Number 1 Mostert Street, CBD, Cape Town, WC, ZAF, 8001
Truworths International Ltd is a clothing and footwear retailer with nearly a thousand stores in Africa and Europe. Its African brands include Truworths, Daniel Hechter, Inwear, Identity, and LTD. Its European brands include Office and Offspring footwear retailers. The company's stores generally sell only proprietary brands, but Office primarily sells global third-party footwear brands. Most of the company's retail locations and sales are in South Africa. Collectively, South Africa and the United Kingdom account for roughly 90% of the company's business. E-commerce sales make up a small portion of total revenue.

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