DP Poland (LSE:DPP) Beneish M-Score : -2.74 (As of Dec. 12, 2024)

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What is DP Poland 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 -2.74 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:DPP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74 Med: -2.19 Max: -1.58
Current: -2.74

During the past 5 years, the highest Beneish M-Score of DP Poland was -1.58. The lowest was -2.74. And the median was -2.19.

DP Poland Beneish M-Score Historical Data

The historical data trend for DP Poland'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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DP Poland Beneish M-Score Chart

DP Poland Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.58

-2.19

-2.74

DP Poland Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial					-	-2.19	-	-2.74	-

Competitive Comparison of DP Poland's Beneish M-Score

For the Restaurants subindustry, DP Poland'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.

DP Poland's Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, DP Poland's Beneish M-Score distribution charts can be found below:

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

DP Poland 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 DP Poland 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 * 1.1403

0.528 * 1.0274

0.404 * 1.0065

0.892 * 1.2502

0.115 * 0.9285

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3628

4.679 * -0.146673

0.327 * 1.1351

-2.74

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £3.88 Mil.
Revenue was £44.62 Mil.
Gross Profit was £11.52 Mil.
Total Current Assets was £6.80 Mil.
Total Assets was £38.97 Mil.
Property, Plant and Equipment(Net PPE) was £12.95 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.73 Mil.
Selling, General, & Admin. Expense(SGA) was £2.58 Mil.
Total Current Liabilities was £16.62 Mil.
Long-Term Debt & Capital Lease Obligation was £6.01 Mil.
Net Income was £-3.54 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £2.17 Mil.

Total Receivables was £2.72 Mil.
Revenue was £35.69 Mil.
Gross Profit was £9.47 Mil.
Total Current Assets was £7.43 Mil.
Total Assets was £40.29 Mil.
Property, Plant and Equipment(Net PPE) was £13.12 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.34 Mil.
Selling, General, & Admin. Expense(SGA) was £5.69 Mil.
Total Current Liabilities was £8.18 Mil.
Long-Term Debt & Capital Lease Obligation was £12.43 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)
	=	(3.876 / 44.623)	/	(2.719 / 35.694)
	=	0.086861	/	0.076175
	=	1.1403

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)
	=	(9.471 / 35.694)	/	(11.524 / 44.623)
	=	0.265339	/	0.258252
	=	1.0274

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 - (6.799 + 12.954) / 38.971)	/	(1 - (7.429 + 13.118) / 40.286)
	=	0.493136	/	0.489972
	=	1.0065

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
	=	44.623	/	35.694
	=	1.2502

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))
	=	(4.336 / (4.336 + 13.118))	/	(4.732 / (4.732 + 12.954))
	=	0.248424	/	0.267556
	=	0.9285

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)
	=	(2.58 / 44.623)	/	(5.688 / 35.694)
	=	0.057818	/	0.159355
	=	0.3628

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)
	=	((6.005 + 16.623) / 38.971)	/	((12.43 + 8.177) / 40.286)
	=	0.580637	/	0.511518
	=	1.1351

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
	=	(-3.542 - 0	-	2.174)	/	38.971
	=	-0.146673

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.

DP Poland has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

DP Poland Beneish M-Score Related Terms

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DP Poland Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » DP Poland PLC (LSE:DPP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

2OP:Germany

Address

ul. D?browiecka 30, Warsaw, POL, 03-932

Website

https://www.dppoland.com

DP Poland PLC is engaged in the operation of pizza delivery. Its subsidiary has the master franchise in Poland for Domino's Pizza which is a pizza delivery brand. The company has two operating segments including corporate sales and commissary operations. The corporate store sales segment, which is the key revenue driver, comprises sales to the public. The commissary operations segment comprises sales to sub-franchisees of food, services, fixtures, and equipment, and includes the receipt of royalty income from sub-franchisees.