L&P Global Bhd (XKLS:0268) Beneish M-Score : -0.66 (As of May. 31, 2024)

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What is L&P Global Bhd 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.

Warning Sign:

Beneish M-Score -0.66 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for L&P Global Bhd's Beneish M-Score or its related term are showing as below:

XKLS:0268' s Beneish M-Score Range Over the Past 10 Years
Min: -0.66 Med: -0.66 Max: -0.66
Current: -0.66

During the past 5 years, the highest Beneish M-Score of L&P Global Bhd was -0.66. The lowest was -0.66. And the median was -0.66.

L&P Global Bhd Beneish M-Score Historical Data

The historical data trend for L&P Global Bhd'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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L&P Global Bhd Beneish M-Score Chart

L&P Global Bhd Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-0.66

L&P Global Bhd Quarterly Data
	Dec19	Dec20	Dec21	Jul22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial				-	-	-	-	-0.66

Competitive Comparison of L&P Global Bhd's Beneish M-Score

For the Integrated Freight & Logistics subindustry, L&P Global Bhd'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.

L&P Global Bhd's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, L&P Global Bhd's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where L&P Global Bhd's Beneish M-Score falls into.

L&P Global Bhd 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 L&P Global Bhd 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 * 0.1285

0.528 * 1.0861

0.404 * 0.1228

0.892 * 4.4259

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6611

4.679 * -0.05813

0.327 * 0.7324

-0.66

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was RM35.4 Mil.
Revenue was 43.916 + 45.598 + 39.59 + 37.934 = RM167.0 Mil.
Gross Profit was 10.389 + 10.975 + 9.42 + 8.036 = RM38.8 Mil.
Total Current Assets was RM89.6 Mil.
Total Assets was RM143.6 Mil.
Property, Plant and Equipment(Net PPE) was RM54.0 Mil.
Depreciation, Depletion and Amortization(DDA) was RM3.7 Mil.
Selling, General, & Admin. Expense(SGA) was RM14.5 Mil.
Total Current Liabilities was RM11.7 Mil.
Long-Term Debt & Capital Lease Obligation was RM29.7 Mil.
Net Income was 4.987 + 6.389 + 5.241 + 4.067 = RM20.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.0 Mil.
Cash Flow from Operations was 13.129 + 4.656 + 2.845 + 8.403 = RM29.0 Mil.

Total Receivables was RM62.3 Mil.
Revenue was 37.741 + 0 + 0 + 0 = RM37.7 Mil.
Gross Profit was 9.526 + 0 + 0 + 0 = RM9.5 Mil.
Total Current Assets was RM90.8 Mil.
Total Assets was RM137.4 Mil.
Property, Plant and Equipment(Net PPE) was RM46.5 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.0 Mil.
Selling, General, & Admin. Expense(SGA) was RM5.0 Mil.
Total Current Liabilities was RM23.0 Mil.
Long-Term Debt & Capital Lease Obligation was RM31.1 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)
	=	(35.416 / 167.038)	/	(62.272 / 37.741)
	=	0.212024	/	1.649983
	=	0.1285

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)
	=	(9.526 / 37.741)	/	(38.82 / 167.038)
	=	0.252405	/	0.232402
	=	1.0861

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 - (89.596 + 54.025) / 143.627)	/	(1 - (90.806 + 46.536) / 137.389)
	=	4.2E-5	/	0.000342
	=	0.1228

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
	=	167.038	/	37.741
	=	4.4259

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))
	=	(0 / (0 + 46.536))	/	(3.697 / (3.697 + 54.025))
	=	0	/	0.064048
	=	1

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)
	=	(14.543 / 167.038)	/	(4.97 / 37.741)
	=	0.087064	/	0.131687
	=	0.6611

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)
	=	((29.731 + 11.681) / 143.627)	/	((31.13 + 22.957) / 137.389)
	=	0.28833	/	0.393678
	=	0.7324

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
	=	(20.684 - 0	-	29.033)	/	143.627
	=	-0.05813

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.

L&P Global Bhd has a M-score of -0.66 signals that the company is likely to be a manipulator.

L&P Global Bhd Beneish M-Score Related Terms

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L&P Global Bhd (XKLS:0268) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » L&P Global Bhd (XKLS:0268) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1328, Jalan Sungai Baong, Furniture Industrial Estate, Sungai Bakap, Pulau Pinang, PNG, MYS, 14200

Website

https://www.lpglobalbhd.com

L&P Global Bhd is an integrated industrial packaging solution provider. The group is principally involved in the design and manufacture of wooden industrial packaging products, including boxes, crates, and pallets. It also provides packing services, circular supply services, and trading of related products and raw materials.

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