Hovnanian Enterprises Beneish M-Score Historical Data
The historical data trend for Hovnanian Enterprises'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.
Hovnanian Enterprises Beneish M-Score Chart
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Hovnanian Enterprises Annual Data
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| Beneish M-Score |
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-3.42 |
-1.11 |
-2.37 |
-3.20 |
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Hovnanian Enterprises Quarterly Data
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| Beneish M-Score |
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-3.20 |
-3.18 |
-3.02 |
-1.78 |
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Competitive Comparison of Hovnanian Enterprises's Beneish M-Score
For the Residential Construction subindustry, Hovnanian Enterprises'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.
Hovnanian Enterprises's Beneish M-Score Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Beneish M-Score falls into.
Hovnanian Enterprises 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 Hovnanian Enterprises for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 1.3776 | + | 0.528 * 0.9524 | + | 0.404 * 1.0787 | + | 0.892 * 1.0568 | + | 0.115 * 1.4485 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0407 | + | 4.679 * 0.042445 | - | 0.327 * 0.8547 |
| = | -1.78 |
* 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.
| This Year (Jul24) TTM: | Last Year (Jul23) TTM: |
Total Receivables was $48 Mil.
Revenue was 722.704 + 708.38 + 594.196 + 887.032 = $2,912 Mil.
Gross Profit was 137.595 + 143.075 + 113.312 + 212.996 = $607 Mil.
Total Current Assets was $1,830 Mil.
Total Assets was $2,541 Mil.
Property, Plant and Equipment(Net PPE) was $41 Mil.
Depreciation, Depletion and Amortization(DDA) was $7 Mil.
Selling, General, & Admin. Expense(SGA) was $335 Mil.
Total Current Liabilities was $501 Mil.
Long-Term Debt & Capital Lease Obligation was $1,014 Mil.
Net Income was 72.919 + 50.836 + 23.904 + 97.265 = $245 Mil.
Non Operating Income was 55.405 + 14.292 + 15.772 + 0.131 = $86 Mil.
Cash Flow from Operations was -92.283 + 89.103 + -89.004 + 143.676 = $51 Mil.
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Total Receivables was $33 Mil.
Revenue was 649.957 + 703.661 + 515.366 + 886.788 = $2,756 Mil.
Gross Profit was 136.042 + 131.325 + 99.774 + 179.86 = $547 Mil.
Total Current Assets was $1,778 Mil.
Total Assets was $2,394 Mil.
Property, Plant and Equipment(Net PPE) was $31 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General, & Admin. Expense(SGA) was $305 Mil.
Total Current Liabilities was $497 Mil.
Long-Term Debt & Capital Lease Obligation was $1,174 Mil.
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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) |
| = | (48.067 / 2912.312) | / | (33.016 / 2755.772) |
| = | 0.016505 | / | 0.011981 |
| | = | 1.3776 |
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) |
| = | (547.001 / 2755.772) | / | (606.978 / 2912.312) |
| = | 0.198493 | / | 0.208418 |
| | = | 0.9524 |
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 - (1830.188 + 41.219) / 2540.505) | / | (1 - (1778.081 + 31.33) / 2393.917) |
| = | 0.263372 | / | 0.244163 |
| | = | 1.0787 |
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 |
| = | 2912.312 | / | 2755.772 |
| | = | 1.0568 |
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)) |
| = | (8.671 / (8.671 + 31.33)) | / | (7.254 / (7.254 + 41.219)) |
| = | 0.21677 | / | 0.14965 |
| | = | 1.4485 |
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) |
| = | (335.295 / 2912.312) | / | (304.875 / 2755.772) |
| = | 0.11513 | / | 0.110631 |
| | = | 1.0407 |
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) |
| = | ((1014.106 + 501.426) / 2540.505) | / | ((1173.906 + 497.015) / 2393.917) |
| = | 0.596548 | / | 0.697986 |
| | = | 0.8547 |
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 |
| = | (244.924 - 85.6 | - | 51.492) | / | 2540.505 |
| | = | 0.042445 |
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.
Hovnanian Enterprises has a M-score of -1.78 suggests that the company is unlikely to be a manipulator.
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