Compagnie Financiere Richemont (Compagnie Financiere Richemont) Beneish M-Score : -3.19 (As of Apr. 24, 2024)

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What is Compagnie Financiere Richemont 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 -3.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CFRHF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.61 Max: -1.85
Current: -3.19

During the past 13 years, the highest Beneish M-Score of Compagnie Financiere Richemont was -1.85. The lowest was -3.19. And the median was -2.61.

Compagnie Financiere Richemont Beneish M-Score Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Beneish M-Score Chart

Compagnie Financiere Richemont Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-1.85

-3.04

-2.56

-2.60

-3.19

Compagnie Financiere Richemont Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.60	-	-3.19	-

Competitive Comparison of Compagnie Financiere Richemont's Beneish M-Score

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Compagnie Financiere Richemont's Beneish M-Score falls into.

Compagnie Financiere Richemont 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 Compagnie Financiere Richemont 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 * 0.8792

0.528 * 0.9707

0.404 * 0.4408

0.892 * 1.1582

0.115 * 1.0851

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9971

4.679 * -0.102184

0.327 * 1.075

-3.18

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was $1,535 Mil.
Revenue was $21,363 Mil.
Gross Profit was $14,685 Mil.
Total Current Assets was $32,514 Mil.
Total Assets was $43,776 Mil.
Property, Plant and Equipment(Net PPE) was $7,396 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,577 Mil.
Selling, General, & Admin. Expense(SGA) was $8,913 Mil.
Total Current Liabilities was $13,178 Mil.
Long-Term Debt & Capital Lease Obligation was $9,888 Mil.
Net Income was $335 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $4,808 Mil.

Total Receivables was $1,508 Mil.
Revenue was $18,445 Mil.
Gross Profit was $12,308 Mil.
Total Current Assets was $27,956 Mil.
Total Assets was $44,037 Mil.
Property, Plant and Equipment(Net PPE) was $7,258 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,710 Mil.
Selling, General, & Admin. Expense(SGA) was $7,718 Mil.
Total Current Liabilities was $11,572 Mil.
Long-Term Debt & Capital Lease Obligation was $10,012 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)
	=	(1535.332 / 21362.955)	/	(1507.709 / 18444.934)
	=	0.071869	/	0.081741
	=	0.8792

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)
	=	(12308.37 / 18444.934)	/	(14685.225 / 21362.955)
	=	0.667304	/	0.687415
	=	0.9707

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 - (32513.919 + 7396.146) / 43776.231)	/	(1 - (27955.947 + 7257.709) / 44037.445)
	=	0.088317	/	0.20037
	=	0.4408

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
	=	21362.955	/	18444.934
	=	1.1582

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))
	=	(1710.352 / (1710.352 + 7257.709))	/	(1577.088 / (1577.088 + 7396.146))
	=	0.190716	/	0.175755
	=	1.0851

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)
	=	(8913.276 / 21362.955)	/	(7718.062 / 18444.934)
	=	0.41723	/	0.418438
	=	0.9971

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)
	=	((9887.58 + 13177.73) / 43776.231)	/	((10012.115 + 11571.586) / 44037.445)
	=	0.526891	/	0.490122
	=	1.075

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
	=	(335.118 - 0	-	4808.351)	/	43776.231
	=	-0.102184

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.

Compagnie Financiere Richemont has a M-score of -3.18 suggests that the company is unlikely to be a manipulator.

Compagnie Financiere Richemont Beneish M-Score Related Terms

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Compagnie Financiere Richemont (Compagnie Financiere Richemont) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Compagnie Financiere Richemont SA (OTCPK:CFRHF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CFR:South Africa CFRUY:USA CFRI:Mexico CFRz:UK 0QMU:UK RIT1:Germany CFR:Switzerland

Address

50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293

Website

https://www.richemont.com

Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up 85% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 67% of revenue and over 86% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc.