Legible (FRA:D0T) Beneish M-Score : 0.00 (As of Dec. 13, 2024)

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What is Legible 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.

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

During the past 4 years, the highest Beneish M-Score of Legible was 8.62. The lowest was -19.31. And the median was 0.50.

Legible Beneish M-Score Historical Data

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

Legible Annual Data

Trend

Jun20

Jun21

Dec22

Dec23

Beneish M-Score

Legible Quarterly Data
	Mar20	Jun20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial													8.62	-	-	-	-

Competitive Comparison of Legible's Beneish M-Score

For the Publishing subindustry, Legible'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.

Legible's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Legible's Beneish M-Score distribution charts can be found below:

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

Legible 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 Legible 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €0.00 Mil.
Revenue was 0.015 + 0.006 + 0.014 + 0.01 = €0.05 Mil.
Gross Profit was 0.005 + 0.002 + 0.004 + 0.004 = €0.02 Mil.
Total Current Assets was €0.20 Mil.
Total Assets was €0.20 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €2.12 Mil.
Total Current Liabilities was €2.47 Mil.
Long-Term Debt & Capital Lease Obligation was €1.41 Mil.
Net Income was -0.785 + -0.646 + -0.748 + -0.904 = €-3.08 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was -0.338 + -0.561 + -0.313 + -0.457 = €-1.67 Mil.

Total Receivables was €0.01 Mil.
Revenue was 0.007 + 0.013 + 0.008 + 0.005 = €0.03 Mil.
Gross Profit was 0.002 + 0.004 + 0.002 + 0.002 = €0.01 Mil.
Total Current Assets was €0.17 Mil.
Total Assets was €0.17 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.07 Mil.
Selling, General, & Admin. Expense(SGA) was €2.53 Mil.
Total Current Liabilities was €1.76 Mil.
Long-Term Debt & Capital Lease Obligation was €0.07 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 / 0.045)	/	(0.01 / 0.033)
	=	0	/	0.30303
	=

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)
	=	(0.01 / 0.033)	/	(0.015 / 0.045)
	=	0.30303	/	0.333333
	=

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 - (0.196 + 0) / 0.196)	/	(1 - (0.169 + 0.001) / 0.17)
	=	0	/	0
	=

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
	=	0.045	/	0.033
	=

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))
	=	(0.074 / (0.074 + 0.001))	/	(0.001 / (0.001 + 0))
	=	0.986667	/	1
	=

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)
	=	(2.117 / 0.045)	/	(2.531 / 0.033)
	=	47.044444	/	76.69697
	=

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)
	=	((1.414 + 2.466) / 0.196)	/	((0.065 + 1.76) / 0.17)
	=	19.795918	/	10.735294
	=

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
	=	(-3.083 - 0	-	-1.669)	/	0.196
	=	-7.214286

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.

Legible Beneish M-Score Related Terms

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Legible Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Legible Inc (FRA:D0T) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LEBGF:USA D0T:Germany READ:Canada

Address

2230 Ontario Street, Vancouver, BC, CAN, V5T 2X2

Website

https://www.legible.com/about

Legible Inc is a book entertainment and media company. The Company has developed two high-value verticals; firstly, a browser first accessible B2C eBook entertainment platform for the emerging web with high-growth potential called legible.com - an eBook entertainment platform delivering beautiful, accessible & immersive reading for next-generation readers; and secondly, a B2B eBook conversion and production service with high-revenue potential called Legible Publishing.

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