IBG (Innovation Beverage Group) Beneish M-Score : -4.62 (As of Dec. 11, 2024)

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What is Innovation Beverage 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.

Good Sign:

Beneish M-Score -4.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

IBG' s Beneish M-Score Range Over the Past 10 Years
Min: -4.62 Med: -3.78 Max: -2.93
Current: -4.62

During the past 4 years, the highest Beneish M-Score of Innovation Beverage Group was -2.93. The lowest was -4.62. And the median was -3.78.

Innovation Beverage Group Beneish M-Score Historical Data

The historical data trend for Innovation Beverage 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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Innovation Beverage Group Beneish M-Score Chart

Innovation Beverage Group Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.93

-4.62

Innovation Beverage Group Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-	-	-2.93	-	-4.62

Competitive Comparison of Innovation Beverage Group's Beneish M-Score

For the Beverages - Wineries & Distilleries subindustry, Innovation Beverage 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.

Innovation Beverage Group's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Innovation Beverage Group's Beneish M-Score distribution charts can be found below:

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

Innovation Beverage 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 Innovation Beverage 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 * 0.4162

0.528 * 0.814

0.404 * 3.0148

0.892 * 0.6949

0.115 * 0.7185

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0719

4.679 * -0.432887

0.327 * 0.9313

-4.62

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $0.46 Mil.
Revenue was $3.15 Mil.
Gross Profit was $2.05 Mil.
Total Current Assets was $2.07 Mil.
Total Assets was $4.93 Mil.
Property, Plant and Equipment(Net PPE) was $0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General, & Admin. Expense(SGA) was $3.41 Mil.
Total Current Liabilities was $4.28 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $-2.01 Mil.
Gross Profit was $0.09 Mil.
Cash Flow from Operations was $0.03 Mil.

Total Receivables was $1.57 Mil.
Revenue was $4.53 Mil.
Gross Profit was $2.41 Mil.
Total Current Assets was $3.38 Mil.
Total Assets was $4.56 Mil.
Property, Plant and Equipment(Net PPE) was $0.37 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General, & Admin. Expense(SGA) was $4.58 Mil.
Total Current Liabilities was $4.13 Mil.
Long-Term Debt & Capital Lease Obligation was $0.12 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)
	=	(0.455 / 3.148)	/	(1.573 / 4.53)
	=	0.144536	/	0.347241
	=	0.4162

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)
	=	(2.406 / 4.53)	/	(2.054 / 3.148)
	=	0.531126	/	0.652478
	=	0.814

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 - (2.069 + 0.204) / 4.932)	/	(1 - (3.375 + 0.372) / 4.563)
	=	0.539132	/	0.17883
	=	3.0148

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
	=	3.148	/	4.53
	=	0.6949

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))
	=	(0.245 / (0.245 + 0.372))	/	(0.252 / (0.252 + 0.204))
	=	0.397083	/	0.552632
	=	0.7185

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)
	=	(3.408 / 3.148)	/	(4.575 / 4.53)
	=	1.082592	/	1.009934
	=	1.0719

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)
	=	((0 + 4.277) / 4.932)	/	((0.117 + 4.132) / 4.563)
	=	0.867194	/	0.931186
	=	0.9313

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
	=	(-2.014 - 0.091	-	0.03)	/	4.932
	=	-0.432887

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.

Innovation Beverage Group has a M-score of -4.62 suggests that the company is unlikely to be a manipulator.

Innovation Beverage Group Beneish M-Score Related Terms

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Innovation Beverage Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Innovation Beverage Group Ltd (NAS:IBG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

29 Anvil Road, Seven Hills, NSW, AUS, 2147

Website

Innovation Beverage Group Ltd is a developer, manufacturer, marketer, exporter and retailer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands. The company's focus is on premium and super premium brands.