Chime Communications (LSE:CHW) Beneish M-Score : 0.00 (As of May. 17, 2024)

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What is Chime Communications 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 Chime Communications's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Chime Communications was 0.00. The lowest was 0.00. And the median was 0.00.

Chime Communications Beneish M-Score Historical Data

The historical data trend for Chime Communications'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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Chime Communications Beneish M-Score Chart

Chime Communications Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Beneish M-Score

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Chime Communications Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Chime Communications's Beneish M-Score

For the Advertising Agencies subindustry, Chime Communications'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.

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

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

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

Chime Communications 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 Chime Communications 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 * 0.8427

0.528 * 1.109

0.404 * 0.9776

0.892 * 1.3048

0.115 * 0.9698

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.003511

0.327 * 1.0316

-2.33

This Year (Dec14) TTM:

Last Year (Dec13) TTM:

Total Receivables was £63.2 Mil.
Revenue was £390.4 Mil.
Gross Profit was £200.2 Mil.
Total Current Assets was £119.3 Mil.
Total Assets was £384.2 Mil.
Property, Plant and Equipment(Net PPE) was £10.3 Mil.
Depreciation, Depletion and Amortization(DDA) was £9.5 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £102.0 Mil.
Long-Term Debt & Capital Lease Obligation was £73.3 Mil.
Net Income was £9.5 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £10.8 Mil.

Total Receivables was £57.5 Mil.
Revenue was £299.2 Mil.
Gross Profit was £170.1 Mil.
Total Current Assets was £106.7 Mil.
Total Assets was £361.9 Mil.
Property, Plant and Equipment(Net PPE) was £9.8 Mil.
Depreciation, Depletion and Amortization(DDA) was £8.6 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £102.2 Mil.
Long-Term Debt & Capital Lease Obligation was £57.9 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)
	=	(63.192 / 390.366)	/	(57.475 / 299.186)
	=	0.161879	/	0.192105
	=	0.8427

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)
	=	(170.129 / 299.186)	/	(200.163 / 390.366)
	=	0.56864	/	0.512757
	=	1.109

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 - (119.296 + 10.274) / 384.207)	/	(1 - (106.722 + 9.837) / 361.902)
	=	0.66276	/	0.677927
	=	0.9776

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
	=	390.366	/	299.186
	=	1.3048

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))
	=	(8.6 / (8.6 + 9.837))	/	(9.521 / (9.521 + 10.274))
	=	0.466453	/	0.48098
	=	0.9698

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)
	=	(0 / 390.366)	/	(0 / 299.186)
	=	0	/	0
	=	1

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)
	=	((73.293 + 101.995) / 384.207)	/	((57.852 + 102.206) / 361.902)
	=	0.456233	/	0.442269
	=	1.0316

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
	=	(9.458 - 0	-	10.807)	/	384.207
	=	-0.003511

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.

Chime Communications has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.

Chime Communications Beneish M-Score Related Terms

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Chime Communications (LSE:CHW) Business Description

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Website

http://www.chimeplc.com

Chime Communications PLC was incorporated in the United Kingdom on January 29, 1986. The Company provides advertising, sports marketing, market research, direct marketing, design and event management consultancy. Its business segments are Sport & Entertainment, Advertising and Marketing Services (AMS), Healthcare, and Insight & Engagement.Â In sport & entertainment segment CSM Sport & Entertainment works with brands, rights holders, governing bodies, governments and athletes across the globe, CSM specialises in strategic consultancy, rights sales, sponsorship activation, hospitality, branding and wayfinding, athlete management and communications across sporting events. The advertising and marketing services division includes the VCCP Partnership and the Chime Specialist Group. VCCP operates in advertising and marketing services, direct marketing, digital communication, search relations, point of sale, sales promotion, data consultancy and technical design, multimedia content, youth marketing and experiential, marketing consulting, retail and shopper marketing and specialist media planning and buying. The Specialist Group includes agencies operating in niche markets; corporate responsibility and sustainability consultancy; for technology brands; providing customer reference and advocacy and; in professional and financial services. The insight and engagement division brings together researchers, technologists and insight specialists who deliver to clients, in real time, actionable solutions. The division has particular expertise in delivering clients in FMCG, financial services, utilities and retail with experience performance improvement plans, mystery shopping programmes and advertising and brand tracking. The Insight & Engagement division includes specialist brands such as Watermelon - a specialist digital agency, Cherry Picked - a specialist recruitment agency, Facts International - a specialist fieldwork agency and full service agencies Opinion Leader and CIE. In healthcare segment OPEN Health is a healthcare communications and market access group. It comprises ten different specialist businesses that bring a breadth of expertise focused principally on pharma, health device and diagnostic clients. OPEN Health's companies cover aspects of the communications mix including advertising, PR, medical communications, market access consulting, real world data collection, market research and patient engagement programmes.