Workhorse Group (HAM:1WO) Beneish M-Score : -0.64 (As of May. 17, 2024)

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What is Workhorse Group 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 -0.64 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HAM:1WO' s Beneish M-Score Range Over the Past 10 Years
Min: -13.24 Med: 1.67 Max: 221.91
Current: -0.64

During the past 13 years, the highest Beneish M-Score of Workhorse Group was 221.91. The lowest was -13.24. And the median was 1.67.

Workhorse Group Beneish M-Score Historical Data

The historical data trend for Workhorse Group'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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Workhorse Group Beneish M-Score Chart

Workhorse Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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3.97

6.38

-0.64

Workhorse Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-0.64

Competitive Comparison of Workhorse Group's Beneish M-Score

For the Auto Manufacturers subindustry, Workhorse Group'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.

Workhorse Group's Beneish M-Score Distribution in the Vehicles & Parts Industry

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

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

Workhorse Group 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 Workhorse Group 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 * 0.1016

0.528 * 3.3496

0.404 * 0.0224

0.892 * 2.5026

0.115 * 0.7103

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.29

4.679 * 0.067136

0.327 * 1.047

-0.73

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €4.10 Mil.
Revenue was 4.04 + 2.838 + 3.661 + 1.581 = €12.12 Mil.
Gross Profit was -12.5 + -3.307 + -4.118 + -3.395 = €-23.32 Mil.
Total Current Assets was €86.04 Mil.
Total Assets was €129.92 Mil.
Property, Plant and Equipment(Net PPE) was €43.72 Mil.
Depreciation, Depletion and Amortization(DDA) was €3.76 Mil.
Selling, General, & Admin. Expense(SGA) was €51.53 Mil.
Total Current Liabilities was €48.86 Mil.
Long-Term Debt & Capital Lease Obligation was €4.84 Mil.
Net Income was -41.501 + -28.715 + -21.246 + -23.349 = €-114.81 Mil.
Non Operating Income was 0 + -9.37 + 0 + 0 = €-9.37 Mil.
Cash Flow from Operations was -25.196 + -27.873 + -30.506 + -30.588 = €-114.16 Mil.

Total Receivables was €16.12 Mil.
Revenue was 3.254 + 1.564 + 0.012 + 0.013 = €4.84 Mil.
Gross Profit was -16.771 + -8.047 + -2.846 + -3.549 = €-31.21 Mil.
Total Current Assets was €131.55 Mil.
Total Assets was €172.51 Mil.
Property, Plant and Equipment(Net PPE) was €31.35 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.87 Mil.
Selling, General, & Admin. Expense(SGA) was €71.01 Mil.
Total Current Liabilities was €59.77 Mil.
Long-Term Debt & Capital Lease Obligation was €8.35 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)
	=	(4.099 / 12.12)	/	(16.123 / 4.843)
	=	0.338201	/	3.329135
	=	0.1016

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)
	=	(-31.213 / 4.843)	/	(-23.32 / 12.12)
	=	-6.444972	/	-1.924092
	=	3.3496

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 - (86.038 + 43.716) / 129.916)	/	(1 - (131.554 + 31.348) / 172.508)
	=	0.001247	/	0.055684
	=	0.0224

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
	=	12.12	/	4.843
	=	2.5026

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))
	=	(1.87 / (1.87 + 31.348))	/	(3.763 / (3.763 + 43.716))
	=	0.056295	/	0.079256
	=	0.7103

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)
	=	(51.531 / 12.12)	/	(71.01 / 4.843)
	=	4.251733	/	14.662399
	=	0.29

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)
	=	((4.843 + 48.86) / 129.916)	/	((8.345 + 59.765) / 172.508)
	=	0.413367	/	0.394822
	=	1.047

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
	=	(-114.811 - -9.37	-	-114.163)	/	129.916
	=	0.067136

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.

Workhorse Group has a M-score of -0.73 signals that the company is likely to be a manipulator.

Workhorse Group Beneish M-Score Related Terms

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Workhorse Group (HAM:1WO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Workhorse Group Inc (HAM:1WO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

WKHS:USA WKHS:Mexico

Address

3600 Park 42 Drive, Suite 160E, Sharonville, OH, USA, 45241

Website

https://www.workhorse.com

Workhorse Group Inc is a technology company. It designs, develops, manufactures, and sells high-performance, medium-duty trucks with powertrain components under the Workhorse chassis brand. The company's products include trucks comprising powertrain and chassis. Its powertrain products include E-GEN and E-100. E-GEN is an electric drive, transmission-free system, which has a gasoline/propane or compressed natural gas (CNG) engine that functions as an auxiliary generator. E-100, an all-electric, medium-duty truck, is an electric power train. The company generates key revenue from the Automotive Revenue which consists of sales of any of its E-GEN or E-100 platforms.

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