Norcros (CHIX:NXRL) Beneish M-Score : -2.70 (As of Dec. 11, 2024)

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What is Norcros 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHIX:NXRl' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9 Med: -2.66 Max: -1.32
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Norcros was -1.32. The lowest was -2.90. And the median was -2.66.

Norcros Beneish M-Score Historical Data

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

Norcros Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.80

-2.90

-2.16

-2.41

-2.70

Norcros Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.41	-	-2.70	-

Competitive Comparison of Norcros's Beneish M-Score

For the Building Products & Equipment subindustry, Norcros'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.

Norcros's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Norcros's Beneish M-Score distribution charts can be found below:

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

Norcros 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 Norcros 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 * 0.9802

0.528 * 0.9123

0.404 * 1.021

0.892 * 0.8891

0.115 * 1.0804

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9923

4.679 * -0.023043

0.327 * 0.9078

-2.70

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was £72.6 Mil.
Revenue was £392.1 Mil.
Gross Profit was £165.0 Mil.
Total Current Assets was £200.8 Mil.
Total Assets was £425.3 Mil.
Property, Plant and Equipment(Net PPE) was £46.1 Mil.
Depreciation, Depletion and Amortization(DDA) was £9.0 Mil.
Selling, General, & Admin. Expense(SGA) was £125.1 Mil.
Total Current Liabilities was £99.2 Mil.
Long-Term Debt & Capital Lease Obligation was £84.0 Mil.
Net Income was £26.8 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £36.6 Mil.

Total Receivables was £83.3 Mil.
Revenue was £441.0 Mil.
Gross Profit was £169.3 Mil.
Total Current Assets was £216.2 Mil.
Total Assets was £443.0 Mil.
Property, Plant and Equipment(Net PPE) was £44.8 Mil.
Depreciation, Depletion and Amortization(DDA) was £9.6 Mil.
Selling, General, & Admin. Expense(SGA) was £141.8 Mil.
Total Current Liabilities was £112.7 Mil.
Long-Term Debt & Capital Lease Obligation was £97.5 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)
	=	(72.6 / 392.1)	/	(83.3 / 441)
	=	0.185157	/	0.188889
	=	0.9802

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)
	=	(169.3 / 441)	/	(165 / 392.1)
	=	0.3839	/	0.420811
	=	0.9123

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 - (200.8 + 46.1) / 425.3)	/	(1 - (216.2 + 44.8) / 443)
	=	0.419469	/	0.410835
	=	1.021

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
	=	392.1	/	441
	=	0.8891

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))
	=	(9.6 / (9.6 + 44.8))	/	(9 / (9 + 46.1))
	=	0.176471	/	0.163339
	=	1.0804

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)
	=	(125.1 / 392.1)	/	(141.8 / 441)
	=	0.319051	/	0.321542
	=	0.9923

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)
	=	((84 + 99.2) / 425.3)	/	((97.5 + 112.7) / 443)
	=	0.430755	/	0.474492
	=	0.9078

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
	=	(26.8 - 0	-	36.6)	/	425.3
	=	-0.023043

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.

Norcros has a M-score of -2.70 suggests that the company is unlikely to be a manipulator.

Norcros Beneish M-Score Related Terms

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Norcros Business Description

Industry

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Traded in Other Exchanges

NXR.GB:UK NXR:UK

Address

Station Road, Ladyfield House, Wilmslow, Cheshire, GBR, SK9 1BU

Website

https://www.norcros.com

Norcros PLC manufactures and markets showers, taps, bathroom accessories, tiles, and adhesives. The company has complementary UK businesses: Triton Showers, Merlyn, Vado, Croydex, Abode, Johnson Tiles, and Norcros Adhesives both for domestic and commercial applications, and three complementary businesses in South Africa: Johnson Tiles South Africa, TAL, and Tile Africa. The Group operates in two main geographical areas: the UK and Ireland and South Africa. The maximum revenue is generated from its business in the United Kingdom.

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