Natura &Co Holding (BSP:NTCO3) Beneish M-Score : -1.71 (As of Apr. 25, 2024)

View and export this data going back to 2019. Start your Free Trial

What is Natura &Co Holding 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 -1.71 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BSP:NTCO3' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67 Med: -2.33 Max: -0.85
Current: -1.71

During the past 6 years, the highest Beneish M-Score of Natura &Co Holding was -0.85. The lowest was -2.67. And the median was -2.33.

Natura &Co Holding Beneish M-Score Historical Data

The historical data trend for Natura &Co Holding'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.

Natura &Co Holding Beneish M-Score Chart

Natura &Co Holding Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

Get a 7-Day Free Trial

-0.85

-2.34

-2.67

Natura &Co Holding Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-2.52	-2.67	-2.50	-2.62	-1.71

Competitive Comparison of Natura &Co Holding's Beneish M-Score

For the Household & Personal Products subindustry, Natura &Co Holding'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.

Natura &Co Holding's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Natura &Co Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Natura &Co Holding's Beneish M-Score falls into.

Natura &Co Holding 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 Natura &Co Holding 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 * 1.0382

0.528 * 0.9471

0.404 * 0.9505

0.892 * 0.9742

0.115 * 0.7541

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.017

4.679 * 0.154522

0.327 * 0.6607

-1.71

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was R$3,407 Mil.
Revenue was 7517.26 + 7773.542 + 7320.156 + 12229.314 = R$34,840 Mil.
Gross Profit was 4906.267 + 5085.594 + 4825.473 + 8291.224 = R$23,109 Mil.
Total Current Assets was R$17,463 Mil.
Total Assets was R$50,571 Mil.
Property, Plant and Equipment(Net PPE) was R$5,833 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,639 Mil.
Selling, General, & Admin. Expense(SGA) was R$19,548 Mil.
Total Current Liabilities was R$9,610 Mil.
Long-Term Debt & Capital Lease Obligation was R$7,568 Mil.
Net Income was 7024.429 + -731.85 + -652.428 + -890.037 = R$4,750 Mil.
Non Operating Income was -142.769 + -102.198 + -541.279 + -904.201 = R$-1,690 Mil.
Cash Flow from Operations was -1118.055 + -331.289 + -1624.291 + 1699.891 = R$-1,374 Mil.

Total Receivables was R$3,368 Mil.
Revenue was 8401.159 + 8108.248 + 7610.902 + 11643.223 = R$35,764 Mil.
Gross Profit was 5223.83 + 5014.805 + 4728.116 + 7499.159 = R$22,466 Mil.
Total Current Assets was R$15,685 Mil.
Total Assets was R$54,501 Mil.
Property, Plant and Equipment(Net PPE) was R$7,891 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,423 Mil.
Selling, General, & Admin. Expense(SGA) was R$19,730 Mil.
Total Current Liabilities was R$12,304 Mil.
Long-Term Debt & Capital Lease Obligation was R$15,719 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)
	=	(3406.585 / 34840.272)	/	(3368.184 / 35763.532)
	=	0.097777	/	0.094179
	=	1.0382

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)
	=	(22465.91 / 35763.532)	/	(23108.558 / 34840.272)
	=	0.628179	/	0.663271
	=	0.9471

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 - (17463.105 + 5832.598) / 50570.786)	/	(1 - (15685.267 + 7891.104) / 54500.819)
	=	0.539345	/	0.567413
	=	0.9505

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
	=	34840.272	/	35763.532
	=	0.9742

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))
	=	(2423.083 / (2423.083 + 7891.104))	/	(2639.122 / (2639.122 + 5832.598))
	=	0.234927	/	0.311521
	=	0.7541

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)
	=	(19547.743 / 34840.272)	/	(19730.08 / 35763.532)
	=	0.561067	/	0.551682
	=	1.017

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)
	=	((7567.718 + 9610.365) / 50570.786)	/	((15718.757 + 12303.579) / 54500.819)
	=	0.339684	/	0.514164
	=	0.6607

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
	=	(4750.114 - -1690.447	-	-1373.744)	/	50570.786
	=	0.154522

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.

Natura &Co Holding has a M-score of -1.71 signals that the company is likely to be a manipulator.

Natura &Co Holding Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Natura &Co Holding's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Natura &Co Holding (BSP:NTCO3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Natura &Co Holding SA (BSP:NTCO3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NTCO:USA

Address

Avenida Alexandre Colares, No. 1188, Sala A17-Bloco A, Parque Anhanguera, Sao Paulo, SP, BRA, 05106-000

Website

https://ri.naturaeco.com

Natura &Co Holding SA is a multinational cosmetics, hygiene, and beauty company. It operates in Asia, Europe, North America, Oceania, & Brazil under the Natura, The Body Shop, & Aesop brand names. It has four operating segments. Natura & Co LATAM segment includes all operations under Natura, Avon, Aesop & The Body Shop brands located in Brazil & Latin America, which account for a majority portion of operating revenues; Avon International segment includes all operations under Avon brand, The Body Shop International segment includes all operations under The Body Shop brand, & Aesop International segment includes all operations under Aesop brand.

Natura &Co Holding (BSP:NTCO3) Headlines

No Headlines