Likewise Group (LSE:LIKE) Beneish M-Score : -2.72 (As of Apr. 06, 2025)

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What is Likewise 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 -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:LIKE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34 Med: -2.51 Max: -1.85
Current: -2.72

During the past 6 years, the highest Beneish M-Score of Likewise Group was -1.85. The lowest was -3.34. And the median was -2.51.

Likewise Group Beneish M-Score Historical Data

The historical data trend for Likewise 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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Likewise Group Beneish M-Score Chart

Likewise Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.34

-2.30

-1.85

-2.72

Likewise Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial					-	-1.85	-	-2.72	-

Competitive Comparison of Likewise Group's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Likewise 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.

Likewise Group's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Likewise Group's Beneish M-Score distribution charts can be found below:

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

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Likewise 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 Likewise 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 * 0.9738

0.528 * 0.9976

0.404 * 0.9286

0.892 * 1.1286

0.115 * 0.7721

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9726

4.679 * -0.051314

0.327 * 1.1267

-2.72

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £15.4 Mil.
Revenue was £139.5 Mil.
Gross Profit was £42.2 Mil.
Total Current Assets was £43.6 Mil.
Total Assets was £101.6 Mil.
Property, Plant and Equipment(Net PPE) was £48.4 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.9 Mil.
Selling, General, & Admin. Expense(SGA) was £40.5 Mil.
Total Current Liabilities was £39.5 Mil.
Long-Term Debt & Capital Lease Obligation was £20.7 Mil.
Net Income was £0.8 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £6.1 Mil.

Total Receivables was £14.0 Mil.
Revenue was £123.6 Mil.
Gross Profit was £37.3 Mil.
Total Current Assets was £39.9 Mil.
Total Assets was £97.0 Mil.
Property, Plant and Equipment(Net PPE) was £47.3 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.6 Mil.
Selling, General, & Admin. Expense(SGA) was £36.9 Mil.
Total Current Liabilities was £30.8 Mil.
Long-Term Debt & Capital Lease Obligation was £20.2 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)
	=	(15.371 / 139.538)	/	(13.987 / 123.643)
	=	0.110156	/	0.113124
	=	0.9738

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)
	=	(37.333 / 123.643)	/	(42.232 / 139.538)
	=	0.301942	/	0.302656
	=	0.9976

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 - (43.643 + 48.386) / 101.591)	/	(1 - (39.875 + 47.3) / 97.008)
	=	0.094123	/	0.101363
	=	0.9286

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
	=	139.538	/	123.643
	=	1.1286

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))
	=	(3.633 / (3.633 + 47.3))	/	(4.925 / (4.925 + 48.386))
	=	0.071329	/	0.092382
	=	0.7721

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)
	=	(40.471 / 139.538)	/	(36.871 / 123.643)
	=	0.290036	/	0.298205
	=	0.9726

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)
	=	((20.744 + 39.458) / 101.591)	/	((20.222 + 30.798) / 97.008)
	=	0.592592	/	0.525936
	=	1.1267

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
	=	(0.844 - 0	-	6.057)	/	101.591
	=	-0.051314

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.

Likewise Group has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

Likewise Group Beneish M-Score Related Terms

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Likewise Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Likewise Group PLC (LSE:LIKE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Radial way, Unit 4 Radial Park, Birmingham Business Park, Solihull, Birmingham, GBR, B37 7WN

Website

https://www.likewiseplc.com

Likewise Group PLC is a distributor of floorcoverings and mattings. The company's products include residential carpets, commercial carpets, and laminate. Geographically, the company derives a majority of its revenue from the United Kingdom followed by the Rest of Europe and the Rest of the world.

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