New Wave Group AB (OSTO:NEWA B) Beneish M-Score : -2.47 (As of May. 20, 2024)

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What is New Wave Group AB 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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for New Wave Group AB's Beneish M-Score or its related term are showing as below:

OSTO:NEWA B' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1 Med: -2.34 Max: -1.6
Current: -2.47

During the past 13 years, the highest Beneish M-Score of New Wave Group AB was -1.60. The lowest was -3.10. And the median was -2.34.

New Wave Group AB Beneish M-Score Historical Data

The historical data trend for New Wave Group AB'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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New Wave Group AB Beneish M-Score Chart

New Wave Group AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.34

-2.99

-2.52

-1.72

-2.30

New Wave Group AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.60	-1.70	-1.92	-2.30	-2.47

Competitive Comparison of New Wave Group AB's Beneish M-Score

For the Specialty Retail subindustry, New Wave Group AB'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.

New Wave Group AB's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, New Wave Group AB's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where New Wave Group AB's Beneish M-Score falls into.

New Wave Group AB 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 New Wave Group AB 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 * 0.8797

0.528 * 1.0016

0.404 * 1.0421

0.892 * 1.0183

0.115 * 1.0566

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -0.03172

0.327 * 0.8297

-2.47

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was kr1,453 Mil.
Revenue was 1995.2 + 2735.9 + 2337 + 2304.5 = kr9,373 Mil.
Gross Profit was 991.9 + 1423.6 + 1136.4 + 1139.7 = kr4,692 Mil.
Total Current Assets was kr7,285 Mil.
Total Assets was kr10,798 Mil.
Property, Plant and Equipment(Net PPE) was kr1,499 Mil.
Depreciation, Depletion and Amortization(DDA) was kr270 Mil.
Selling, General, & Admin. Expense(SGA) was kr0 Mil.
Total Current Liabilities was kr1,472 Mil.
Long-Term Debt & Capital Lease Obligation was kr2,283 Mil.
Net Income was 121.3 + 366.3 + 270.9 + 259.6 = kr1,018 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0 Mil.
Cash Flow from Operations was 203.7 + 753.5 + 173.3 + 230.1 = kr1,361 Mil.

Total Receivables was kr1,622 Mil.
Revenue was 2135.5 + 2815.1 + 2234.4 + 2019.2 = kr9,204 Mil.
Gross Profit was 1082.9 + 1399.7 + 1102.8 + 1029.4 = kr4,615 Mil.
Total Current Assets was kr7,569 Mil.
Total Assets was kr10,837 Mil.
Property, Plant and Equipment(Net PPE) was kr1,329 Mil.
Depreciation, Depletion and Amortization(DDA) was kr256 Mil.
Selling, General, & Admin. Expense(SGA) was kr1,159 Mil.
Total Current Liabilities was kr1,892 Mil.
Long-Term Debt & Capital Lease Obligation was kr2,651 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)
	=	(1452.7 / 9372.6)	/	(1621.6 / 9204.2)
	=	0.154994	/	0.17618
	=	0.8797

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)
	=	(4614.8 / 9204.2)	/	(4691.6 / 9372.6)
	=	0.50138	/	0.500565
	=	1.0016

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 - (7284.8 + 1498.5) / 10797.5)	/	(1 - (7568.6 + 1328.9) / 10837.4)
	=	0.186543	/	0.179
	=	1.0421

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
	=	9372.6	/	9204.2
	=	1.0183

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))
	=	(255.8 / (255.8 + 1328.9))	/	(270.2 / (270.2 + 1498.5))
	=	0.161419	/	0.152768
	=	1.0566

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 / 9372.6)	/	(1158.7 / 9204.2)
	=	0	/	0.125888
	=	0

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)
	=	((2283.4 + 1472) / 10797.5)	/	((2651.4 + 1891.6) / 10837.4)
	=	0.347803	/	0.419196
	=	0.8297

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
	=	(1018.1 - 0	-	1360.6)	/	10797.5
	=	-0.03172

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.

New Wave Group AB has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

New Wave Group AB Beneish M-Score Related Terms

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New Wave Group AB (OSTO:NEWA B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » New Wave Group AB (OSTO:NEWA B) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NWG0:Germany

Address

Kungsportsavenyen 10, Gothenburg, SWE, 41136

Website

https://www.nwg.se

New Wave Group AB is a Sweden-based company that designs, acquires and develops brands and products in the corporate promo, gifts, and home furnishings sectors. The group achieves synergies by coordinating the design, purchasing, marketing, warehousing and distribution of its product range. To ensure good diversification, the Group market its products in the corporate promo market and the retail market. The group divides its operations into three operating segments, Corporate, Sports and Leisure, and Gifts and Home Furnishings.

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