CVC (ASX:CVC) Beneish M-Score : -3.08 (As of Apr. 26, 2024)

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What is CVC 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 -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:CVC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08 Med: -2.51 Max: 3.17
Current: -3.08

During the past 13 years, the highest Beneish M-Score of CVC was 3.17. The lowest was -3.08. And the median was -2.51.

CVC Beneish M-Score Historical Data

The historical data trend for CVC'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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CVC Beneish M-Score Chart

CVC Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-2.53

3.17

-1.86

-2.48

-3.08

CVC 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															-	-2.48	-	-3.08	-

Competitive Comparison of CVC's Beneish M-Score

For the Asset Management subindustry, CVC'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.

CVC's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, CVC's Beneish M-Score distribution charts can be found below:

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

CVC 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 CVC 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 * 0.6261

0.528 * 0.9456

0.404 * 1.2311

0.892 * 1.1756

0.115 * 0.6685

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6353

4.679 * -0.107313

0.327 * 0.9932

-3.08

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was A$42.54 Mil.
Revenue was A$79.82 Mil.
Gross Profit was A$76.17 Mil.
Total Current Assets was A$101.16 Mil.
Total Assets was A$283.06 Mil.
Property, Plant and Equipment(Net PPE) was A$1.46 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.77 Mil.
Selling, General, & Admin. Expense(SGA) was A$5.27 Mil.
Total Current Liabilities was A$12.53 Mil.
Long-Term Debt & Capital Lease Obligation was A$87.69 Mil.
Net Income was A$13.42 Mil.
Gross Profit was A$16.78 Mil.
Cash Flow from Operations was A$27.01 Mil.

Total Receivables was A$57.80 Mil.
Revenue was A$67.90 Mil.
Gross Profit was A$61.27 Mil.
Total Current Assets was A$132.69 Mil.
Total Assets was A$279.23 Mil.
Property, Plant and Equipment(Net PPE) was A$1.96 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.59 Mil.
Selling, General, & Admin. Expense(SGA) was A$7.06 Mil.
Total Current Liabilities was A$72.97 Mil.
Long-Term Debt & Capital Lease Obligation was A$26.57 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)
	=	(42.541 / 79.816)	/	(57.795 / 67.895)
	=	0.532988	/	0.851241
	=	0.6261

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)
	=	(61.27 / 67.895)	/	(76.171 / 79.816)
	=	0.902423	/	0.954332
	=	0.9456

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 - (101.162 + 1.461) / 283.061)	/	(1 - (132.691 + 1.955) / 279.227)
	=	0.637453	/	0.51779
	=	1.2311

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
	=	79.816	/	67.895
	=	1.1756

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))
	=	(0.587 / (0.587 + 1.955))	/	(0.771 / (0.771 + 1.461))
	=	0.230921	/	0.34543
	=	0.6685

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)
	=	(5.271 / 79.816)	/	(7.058 / 67.895)
	=	0.066039	/	0.103955
	=	0.6353

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)
	=	((87.69 + 12.525) / 283.061)	/	((26.566 + 72.965) / 279.227)
	=	0.35404	/	0.356452
	=	0.9932

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
	=	(13.418 - 16.78	-	27.014)	/	283.061
	=	-0.107313

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.

CVC has a M-score of -3.08 suggests that the company is unlikely to be a manipulator.

CVC Beneish M-Score Related Terms

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CVC (ASX:CVC) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Level 40, Governor Philip Tower, Suite 4, 1 Farrer Place, Sydney, NSW, AUS, 2000

Website

https://www.cvc.com.au

CVC Ltd is a diversified investment company that invests patient capital in a combination of listed, unlisted, and property investments. It is organized into the following business segments: Property Investment, Non-Property Investment. Property Investment includes investments in property-related ordinary equity, preferred equity, joint ventures, options to acquire an interest in direct property subject to planning outcomes, and property-backed lending comprising loans backed by underlying property assets. Non-Property Investment comprises listed investments, unlisted investments, and secured lending opportunities that are non-property related. It also includes receivables, litigation claims, and other investments. The company operates predominantly in Australia.