Pandora A/S (Pandora A/S) Beneish M-Score : -3.11 (As of Apr. 27, 2024)

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What is Pandora A/S 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 -3.11 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Pandora A/S's Beneish M-Score or its related term are showing as below:

PNDZF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81 Med: -2.91 Max: -2.11
Current: -3.11

During the past 13 years, the highest Beneish M-Score of Pandora A/S was -2.11. The lowest was -3.81. And the median was -2.91.

Pandora A/S Beneish M-Score Historical Data

The historical data trend for Pandora A/S'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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Pandora A/S Beneish M-Score Chart

Pandora A/S Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.43

-3.81

-2.84

-2.11

-3.11

Pandora A/S Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.11	-2.61	-2.73	-2.95	-3.11

Competitive Comparison of Pandora A/S's Beneish M-Score

For the Luxury Goods subindustry, Pandora A/S'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.

Pandora A/S's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Pandora A/S's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Pandora A/S's Beneish M-Score falls into.

Pandora A/S 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 Pandora A/S 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 * 0.9064

0.528 * 0.9701

0.404 * 0.945

0.892 * 1.0881

0.115 * 1.1403

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0558

4.679 * -0.111149

0.327 * 1.1499

-3.09

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $329 Mil.
Revenue was 1583.075 + 797.401 + 857.696 + 841.46 = $4,080 Mil.
Gross Profit was 1255.194 + 630.25 + 670.266 + 652.455 = $3,208 Mil.
Total Current Assets was $1,170 Mil.
Total Assets was $3,482 Mil.
Property, Plant and Equipment(Net PPE) was $955 Mil.
Depreciation, Depletion and Amortization(DDA) was $301 Mil.
Selling, General, & Admin. Expense(SGA) was $2,185 Mil.
Total Current Liabilities was $1,178 Mil.
Long-Term Debt & Capital Lease Obligation was $1,425 Mil.
Net Income was 370.164 + 77.708 + 113.215 + 127.873 = $689 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 705.361 + 154.271 + 236.761 + -20.425 = $1,076 Mil.

Total Receivables was $333 Mil.
Revenue was 1403.409 + 700.146 + 803.199 + 842.503 = $3,749 Mil.
Gross Profit was 1069.501 + 537.049 + 613.3 + 640.355 = $2,860 Mil.
Total Current Assets was $1,101 Mil.
Total Assets was $3,134 Mil.
Property, Plant and Equipment(Net PPE) was $741 Mil.
Depreciation, Depletion and Amortization(DDA) was $279 Mil.
Selling, General, & Admin. Expense(SGA) was $1,902 Mil.
Total Current Liabilities was $1,592 Mil.
Long-Term Debt & Capital Lease Obligation was $446 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)
	=	(328.612 / 4079.632)	/	(333.196 / 3749.257)
	=	0.080549	/	0.08887
	=	0.9064

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)
	=	(2860.205 / 3749.257)	/	(3208.165 / 4079.632)
	=	0.762872	/	0.786386
	=	0.9701

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 - (1170.188 + 954.673) / 3481.887)	/	(1 - (1100.827 + 740.862) / 3134.46)
	=	0.389739	/	0.412438
	=	0.945

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
	=	4079.632	/	3749.257
	=	1.0881

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))
	=	(278.543 / (278.543 + 740.862))	/	(300.866 / (300.866 + 954.673))
	=	0.273241	/	0.239631
	=	1.1403

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)
	=	(2185.276 / 4079.632)	/	(1902.192 / 3749.257)
	=	0.535655	/	0.507352
	=	1.0558

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)
	=	((1424.621 + 1178.235) / 3481.887)	/	((445.685 + 1592.077) / 3134.46)
	=	0.747542	/	0.650116
	=	1.1499

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
	=	(688.96 - 0	-	1075.968)	/	3481.887
	=	-0.111149

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.

Pandora A/S has a M-score of -3.09 suggests that the company is unlikely to be a manipulator.

Pandora A/S Beneish M-Score Related Terms

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Pandora A/S (Pandora A/S) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Pandora A/S (OTCPK:PNDZF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PANDY:USA PNDORc:UK 0NQC:UK PNDORA:Denmark 3P7:Germany

Address

Havneholmen 17-19, Copenhagen, DNK, DK-1561

Website

https://www.pandoragroup.com

Pandora is a premium jewelry brand and the market leader in the charm bracelet category. The company was established in the 1980s in Denmark and since then has expanded globally. Pandora has over 2,500 concept stores globally (1,600 owned and operated, and the remainder run by its franchise partners) as well as multibrand locations and stores-in-stores. Pandora owned retail accounts for 51% of sales, own online channels for 21% and wholesale for the remainder. Charms and bracelets account for almost three fourths of its sales. The firm produces mostly internally in two jewelry-crafting facilities in Thailand.