Localiza Rent A Car (BSP:RENT3) Beneish M-Score : -2.01 (As of Dec. 11, 2024)

View and export this data going back to 2005. Start your Free Trial

What is Localiza Rent A Car 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 -2.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:RENT3' s Beneish M-Score Range Over the Past 10 Years
Min: -2.5 Med: -1.59 Max: 1.34
Current: -2.01

During the past 13 years, the highest Beneish M-Score of Localiza Rent A Car was 1.34. The lowest was -2.50. And the median was -1.59.

Localiza Rent A Car Beneish M-Score Historical Data

The historical data trend for Localiza Rent A Car'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.

Localiza Rent A Car Beneish M-Score Chart

Localiza Rent A Car Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.37

-2.04

-1.39

0.45

-1.44

Localiza Rent A Car Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-0.66	-1.44	-1.08	-1.57	-2.01

Competitive Comparison of Localiza Rent A Car's Beneish M-Score

For the Rental & Leasing Services subindustry, Localiza Rent A Car'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.

Localiza Rent A Car's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Localiza Rent A Car's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Localiza Rent A Car's Beneish M-Score falls into.

Localiza Rent A Car 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 Localiza Rent A Car 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 * 0.8865

0.528 * 1.2237

0.404 * 0.9469

0.892 * 1.3143

0.115 * 0.8157

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0562

4.679 * 0.053393

0.327 * 1.0592

-2.01

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R$3,929 Mil.
Revenue was 9683.367 + 9049.049 + 8686.4 + 7908.5 = R$35,327 Mil.
Gross Profit was 2761.018 + 649.533 + 3557.8 + 2437.249 = R$9,406 Mil.
Total Current Assets was R$19,688 Mil.
Total Assets was R$82,594 Mil.
Property, Plant and Equipment(Net PPE) was R$51,049 Mil.
Depreciation, Depletion and Amortization(DDA) was R$5,890 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,757 Mil.
Total Current Liabilities was R$17,955 Mil.
Long-Term Debt & Capital Lease Obligation was R$36,466 Mil.
Net Income was 811.178 + -569.471 + 733.5 + 705.802 = R$1,681 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 2007.487 + 43.087 + -2760.7 + -2018.773 = R$-2,729 Mil.

Total Receivables was R$3,372 Mil.
Revenue was 7321.957 + 6846.159 + 6825.8 + 5885.539 = R$26,879 Mil.
Gross Profit was 2238.563 + 1454.827 + 3092.6 + 1971.401 = R$8,757 Mil.
Total Current Assets was R$15,104 Mil.
Total Assets was R$73,842 Mil.
Property, Plant and Equipment(Net PPE) was R$47,543 Mil.
Depreciation, Depletion and Amortization(DDA) was R$4,382 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,986 Mil.
Total Current Liabilities was R$14,844 Mil.
Long-Term Debt & Capital Lease Obligation was R$31,091 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)
	=	(3928.664 / 35327.316)	/	(3371.946 / 26879.455)
	=	0.111208	/	0.125447
	=	0.8865

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)
	=	(8757.391 / 26879.455)	/	(9405.6 / 35327.316)
	=	0.325802	/	0.266242
	=	1.2237

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 - (19687.842 + 51048.746) / 82593.685)	/	(1 - (15103.92 + 47543.141) / 73841.922)
	=	0.143559	/	0.151606
	=	0.9469

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
	=	35327.316	/	26879.455
	=	1.3143

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))
	=	(4381.98 / (4381.98 + 47543.141))	/	(5890.389 / (5890.389 + 51048.746))
	=	0.08439	/	0.103451
	=	0.8157

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)
	=	(2757.493 / 35327.316)	/	(1986.432 / 26879.455)
	=	0.078056	/	0.073901
	=	1.0562

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)
	=	((36465.559 + 17954.853) / 82593.685)	/	((31090.856 + 14843.656) / 73841.922)
	=	0.658893	/	0.622065
	=	1.0592

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
	=	(1681.009 - 0	-	-2728.899)	/	82593.685
	=	0.053393

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.

Localiza Rent A Car has a M-score of -2.01 suggests that the company is unlikely to be a manipulator.

Localiza Rent A Car Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Localiza Rent A Car's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Localiza Rent A Car Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Localiza Rent A Car SA (BSP:RENT3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LZRFY:USA

Address

Avenida Bernardo Vasconcelo, No 377 - Cachoeirinha, Belo Horizonte, MG, BRA, 31150-900

Website

https://www.localiza.com

Localiza Rent A Car SA is a car rental service provider with the majority of its operations in Brazil. Through its subsidiaries, the company rents cars to individuals, manages corporate car fleets, sells its fleet to the general public, and offers a franchise model. Franchisees account for roughly half of Localize's car rental locations, while the majority of cars accessible with Localize are owned by the company. The fleet rental division has long-term agreements with companies that come up for renewal roughly every two to three years. The car rental segment delivers three-quarters of yearly revenue, and fleet rental makes up the rest, with an insignificant share contributed by the franchise management division.

Localiza Rent A Car Headlines

No Headlines