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Life Healthcare Group Holdings (JSE:LHC) Beneish M-Score : -3.41 (As of Oct. 31, 2024)


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What is Life Healthcare Group Holdings 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 -3.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:LHC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41   Med: -2.7   Max: -2.33
Current: -3.41

During the past 13 years, the highest Beneish M-Score of Life Healthcare Group Holdings was -2.33. The lowest was -3.41. And the median was -2.70.


Life Healthcare Group Holdings Beneish M-Score Historical Data

The historical data trend for Life Healthcare Group Holdings'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.

* Premium members only.

Life Healthcare Group Holdings Beneish M-Score Chart

Life Healthcare Group Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.73 -2.94 -2.82 -2.57 -3.41

Life Healthcare Group Holdings Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -2.57 - -3.41 -

Competitive Comparison of Life Healthcare Group Holdings's Beneish M-Score

For the Medical Care Facilities subindustry, Life Healthcare Group Holdings'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.


Life Healthcare Group Holdings's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Life Healthcare Group Holdings's Beneish M-Score distribution charts can be found below:

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



Life Healthcare Group Holdings 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 Life Healthcare Group Holdings 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 * 0.7511+0.528 * 1.0043+0.404 * 0.276+0.892 * 1.103+0.115 * 0.6153
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9829+4.679 * -0.096591-0.327 * 1.04
=-3.41

* 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 (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was R3,372 Mil.
Revenue was R22,641 Mil.
Gross Profit was R15,587 Mil.
Total Current Assets was R29,414 Mil.
Total Assets was R45,615 Mil.
Property, Plant and Equipment(Net PPE) was R10,572 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,126 Mil.
Selling, General, & Admin. Expense(SGA) was R1,004 Mil.
Total Current Liabilities was R11,198 Mil.
Long-Term Debt & Capital Lease Obligation was R11,010 Mil.
Net Income was R264 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R4,670 Mil.
Total Receivables was R4,070 Mil.
Revenue was R20,526 Mil.
Gross Profit was R14,192 Mil.
Total Current Assets was R7,784 Mil.
Total Assets was R42,238 Mil.
Property, Plant and Equipment(Net PPE) was R15,566 Mil.
Depreciation, Depletion and Amortization(DDA) was R980 Mil.
Selling, General, & Admin. Expense(SGA) was R926 Mil.
Total Current Liabilities was R7,649 Mil.
Long-Term Debt & Capital Lease Obligation was R12,124 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)
=(3372 / 22641) / (4070 / 20526)
=0.148933 / 0.198285
=0.7511

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)
=(14192 / 20526) / (15587 / 22641)
=0.691416 / 0.688441
=1.0043

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 - (29414 + 10572) / 45615) / (1 - (7784 + 15566) / 42238)
=0.123402 / 0.44718
=0.276

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
=22641 / 20526
=1.103

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))
=(980 / (980 + 15566)) / (1126 / (1126 + 10572))
=0.059229 / 0.096256
=0.6153

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)
=(1004 / 22641) / (926 / 20526)
=0.044344 / 0.045114
=0.9829

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)
=((11010 + 11198) / 45615) / ((12124 + 7649) / 42238)
=0.486857 / 0.468133
=1.04

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
=(264 - 0 - 4670) / 45615
=-0.096591

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.

Life Healthcare Group Holdings has a M-score of -3.41 suggests that the company is unlikely to be a manipulator.


Life Healthcare Group Holdings Beneish M-Score Related Terms

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Life Healthcare Group Holdings Business Description

Traded in Other Exchanges
Address
203 Oxford Road, Building 2, Oxford Parks, Corner Eastwood and Oxford Roads, Dunkeld, Johannesburg, GT, ZAF, 2196
Life Healthcare Group Holdings Ltd is an international and diversified healthcare organization based in South Africa. The firm's segments include hospitals and complementary services, healthcare services, and Radiopharmaceutical products. The hospitals and complementary services segment generates majority of the revenue. Its services include mental healthcare, acute rehabilitation, renal dialysis, and oncology. The smaller growth initiatives segment focuses on clinical quality products, and outpatient business in South Africa.

Life Healthcare Group Holdings Headlines