ECDA (ECD Automotive Design) Beneish M-Score : 1.57 (As of Dec. 11, 2024)

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What is ECD Automotive Design 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 1.57 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ECDA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95 Med: -0.69 Max: 1.57
Current: 1.57

During the past 3 years, the highest Beneish M-Score of ECD Automotive Design was 1.57. The lowest was -2.95. And the median was -0.69.

ECD Automotive Design Beneish M-Score Historical Data

The historical data trend for ECD Automotive Design'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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ECD Automotive Design Beneish M-Score Chart

ECD Automotive Design Annual Data

Trend

Dec21

Dec22

Dec23

Beneish M-Score

ECD Automotive Design Quarterly Data
	Dec21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial					-	-	-	-2.95	1.57

Competitive Comparison of ECD Automotive Design's Beneish M-Score

For the Auto Manufacturers subindustry, ECD Automotive Design'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.

ECD Automotive Design's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, ECD Automotive Design's Beneish M-Score distribution charts can be found below:

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

ECD Automotive Design 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 ECD Automotive Design 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 * 0.0209

0.528 * 0.6802

0.404 * 10.1763

0.892 * 2.2841

0.115 * 0.1608

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7985

4.679 * 0.090366

0.327 * 1.2919

1.57

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was $0.11 Mil.
Revenue was 8.872 + 8.308 + 0 + 6.211 = $23.39 Mil.
Gross Profit was 2.817 + 2.477 + 0 + 2.197 = $7.49 Mil.
Total Current Assets was $16.29 Mil.
Total Assets was $21.75 Mil.
Property, Plant and Equipment(Net PPE) was $4.19 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.38 Mil.
Selling, General, & Admin. Expense(SGA) was $6.59 Mil.
Total Current Liabilities was $18.73 Mil.
Long-Term Debt & Capital Lease Obligation was $15.11 Mil.
Net Income was -0.926 + -1.55 + 0 + 0.668 = $-1.81 Mil.
Non Operating Income was 0.098 + 0.044 + 0 + 0.013 = $0.16 Mil.
Cash Flow from Operations was -1.21 + -2.513 + 0 + -0.205 = $-3.93 Mil.

Total Receivables was $2.20 Mil.
Revenue was 3.868 + 2.707 + 0 + 3.666 = $10.24 Mil.
Gross Profit was 1.229 + 0.304 + 0 + 0.698 = $2.23 Mil.
Total Current Assets was $8.00 Mil.
Total Assets was $13.17 Mil.
Property, Plant and Equipment(Net PPE) was $5.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.07 Mil.
Selling, General, & Admin. Expense(SGA) was $3.62 Mil.
Total Current Liabilities was $11.13 Mil.
Long-Term Debt & Capital Lease Obligation was $4.74 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)
	=	(0.105 / 23.391)	/	(2.198 / 10.241)
	=	0.004489	/	0.214627
	=	0.0209

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)
	=	(2.231 / 10.241)	/	(7.491 / 23.391)
	=	0.21785	/	0.320251
	=	0.6802

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 - (16.291 + 4.194) / 21.745)	/	(1 - (8.001 + 5.096) / 13.172)
	=	0.057944	/	0.005694
	=	10.1763

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
	=	23.391	/	10.241
	=	2.2841

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))
	=	(0.069 / (0.069 + 5.096))	/	(0.38 / (0.38 + 4.194))
	=	0.013359	/	0.083078
	=	0.1608

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)
	=	(6.593 / 23.391)	/	(3.615 / 10.241)
	=	0.281861	/	0.352993
	=	0.7985

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)
	=	((15.106 + 18.728) / 21.745)	/	((4.739 + 11.125) / 13.172)
	=	1.555944	/	1.204373
	=	1.2919

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
	=	(-1.808 - 0.155	-	-3.928)	/	21.745
	=	0.090366

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.

ECD Automotive Design has a M-score of 1.57 signals that the company is likely to be a manipulator.

ECD Automotive Design Beneish M-Score Related Terms

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ECD Automotive Design Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » ECD Automotive Design Inc (NAS:ECDA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

4930 Industrial Lane, Unit 107, Kissimmee, FL, USA, 34758

Website

https://www.ecdautodesign.com

ECD Automotive Design Inc is a custom-car builder in the Restomod sector with a focus on British classic motor vehicles of various models of both two-door and four-door styles. The company has established a facility geared towards producing the most customized Land Rovers with the highest quality of parts and the highest quality labor force building each vehicle. ECD restores Land Rovers Defenders, Land Rover Series IIA, the Range Rover Classic and the Jaguar E-Type. It upgrade any engine, including Chevrolet V8's, Land Rover V8's, Cummins diesel engines and new electric drivetrains, performing all the necessary body work, drivetrain selection and installation, every stitch in the interior, paint work, up to placement of the last nut and bolt.