IRSA Inversiones y Representaciones (BUE:IRSA) Beneish M-Score : -0.41 (As of Dec. 11, 2024)

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What is IRSA Inversiones y Representaciones 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 -0.41 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BUE:IRSA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99 Med: -0.52 Max: 26.93
Current: -0.41

During the past 13 years, the highest Beneish M-Score of IRSA Inversiones y Representaciones was 26.93. The lowest was -2.99. And the median was -0.52.

IRSA Inversiones y Representaciones Beneish M-Score Historical Data

The historical data trend for IRSA Inversiones y Representaciones'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.

IRSA Inversiones y Representaciones Beneish M-Score Chart

IRSA Inversiones y Representaciones Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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0.53

0.67

-2.33

IRSA Inversiones y Representaciones 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															-1.07	-0.17	0.27	-2.33	-0.41

Competitive Comparison of IRSA Inversiones y Representaciones's Beneish M-Score

For the Real Estate Services subindustry, IRSA Inversiones y Representaciones'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.

IRSA Inversiones y Representaciones's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, IRSA Inversiones y Representaciones's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where IRSA Inversiones y Representaciones's Beneish M-Score falls into.

IRSA Inversiones y Representaciones 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 IRSA Inversiones y Representaciones 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 * 2.5637

0.528 * 1.0084

0.404 * 0.978

0.892 * 0.9538

0.115 * 2.5954

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1481

4.679 * 0.130013

0.327 * 1.2595

-0.41

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ARS75,821 Mil.
Revenue was 89873 + 114981 + 59734 + 54359 = ARS318,947 Mil.
Gross Profit was 57415 + 74881 + 40258 + 36929 = ARS209,483 Mil.
Total Current Assets was ARS257,290 Mil.
Total Assets was ARS2,286,495 Mil.
Property, Plant and Equipment(Net PPE) was ARS48,100 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS6,754 Mil.
Selling, General, & Admin. Expense(SGA) was ARS64,819 Mil.
Total Current Liabilities was ARS313,785 Mil.
Long-Term Debt & Capital Lease Obligation was ARS173,684 Mil.
Net Income was -105646 + 75800 + -319500 + 23422 = ARS-325,924 Mil.
Non Operating Income was -198281 + 56072 + -619457 + 20129 = ARS-741,537 Mil.
Cash Flow from Operations was 47811 + 28170 + 41790 + 568 = ARS118,339 Mil.

Total Receivables was ARS31,006 Mil.
Revenue was 94939 + 122751 + 63120 + 53574 = ARS334,384 Mil.
Gross Profit was 64045 + 79889 + 41014 + 36518 = ARS221,466 Mil.
Total Current Assets was ARS103,354 Mil.
Total Assets was ARS1,061,363 Mil.
Property, Plant and Equipment(Net PPE) was ARS17,698 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS8,312 Mil.
Selling, General, & Admin. Expense(SGA) was ARS59,190 Mil.
Total Current Liabilities was ARS88,987 Mil.
Long-Term Debt & Capital Lease Obligation was ARS90,675 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)
	=	(75821 / 318947)	/	(31006 / 334384)
	=	0.237723	/	0.092726
	=	2.5637

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)
	=	(221466 / 334384)	/	(209483 / 318947)
	=	0.66231	/	0.656796
	=	1.0084

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 - (257290 + 48100) / 2286495)	/	(1 - (103354 + 17698) / 1061363)
	=	0.866437	/	0.885947
	=	0.978

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
	=	318947	/	334384
	=	0.9538

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))
	=	(8312 / (8312 + 17698))	/	(6754 / (6754 + 48100))
	=	0.319569	/	0.123127
	=	2.5954

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)
	=	(64819 / 318947)	/	(59190 / 334384)
	=	0.203228	/	0.177012
	=	1.1481

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)
	=	((173684 + 313785) / 2286495)	/	((90675 + 88987) / 1061363)
	=	0.213195	/	0.169275
	=	1.2595

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
	=	(-325924 - -741537	-	118339)	/	2286495
	=	0.130013

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.

IRSA Inversiones y Representaciones has a M-score of -0.41 signals that the company is likely to be a manipulator.

IRSA Inversiones y Representaciones Beneish M-Score Related Terms

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IRSA Inversiones y Representaciones Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » IRSA Inversiones y Representaciones SA (BUE:IRSA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

IRS:USA IRY:Germany IRY:Germany

Address

Carlos M. Della Paolera 261, 9th Floor, Buenos Aires, ARG, C1001ADA

Website

http://www.irsa.com.ar

IRSA Inversiones y Representaciones SA is engaged in a diversified business. The company's operating segment includes Shopping Malls; Offices; Sales and Developments; Hotels and others. It generates maximum revenue from the Shopping Malls segment. The Shopping Malls segment comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the company.

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