Lonrho (LSE:LONR) Beneish M-Score : 0.00 (As of May. 15, 2024)

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

During the past 13 years, the highest Beneish M-Score of Lonrho was 0.00. The lowest was -4.08. And the median was -3.56.

Lonrho Beneish M-Score Historical Data

The historical data trend for Lonrho'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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Lonrho Beneish M-Score Chart

Lonrho Annual Data

Trend

Sep03

Sep04

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Dec12

Beneish M-Score

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-3.56

-4.08

-2.57

-2.23

-3.99

Lonrho Semi-Annual Data
	Mar02	Sep02	Mar03	Sep03	Mar05	Sep05	Mar06	Sep06	Mar07	Sep07	Mar08	Sep08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Jun12	Dec12
Beneish M-Score	Get a 7-Day Free Trial															-2.57	-	-2.23	-	-3.99

Competitive Comparison of Lonrho's Beneish M-Score

For the Conglomerates subindustry, Lonrho'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.

Lonrho's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Lonrho's Beneish M-Score distribution charts can be found below:

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

Lonrho 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 Lonrho 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

This Year (Dec12) TTM:

Last Year (Sep11) TTM:

Total Receivables was £27.3 Mil.
Revenue was £206.5 Mil.
Gross Profit was £59.6 Mil.
Total Current Assets was £84.3 Mil.
Total Assets was £328.5 Mil.
Property, Plant and Equipment(Net PPE) was £130.0 Mil.
Depreciation, Depletion and Amortization(DDA) was £11.8 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £67.6 Mil.
Long-Term Debt & Capital Lease Obligation was £77.6 Mil.
Net Income was £-1.7 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £-33.1 Mil.

Total Receivables was £0.0 Mil.
Revenue was £142.5 Mil.
Gross Profit was £38.0 Mil.
Total Current Assets was £0.0 Mil.
Total Assets was £0.0 Mil.
Property, Plant and Equipment(Net PPE) was £0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was £8.4 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £0.0 Mil.
Long-Term Debt & Capital Lease Obligation was £0.0 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)
	=	(27.3 / 206.5)	/	(0 / 142.5)
	=	0.132203	/	0
	=

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)
	=	(38 / 142.5)	/	(59.6 / 206.5)
	=	0.266667	/	0.28862
	=

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 - (84.3 + 130) / 328.5)	/	(1 - (0 + 0) / 0)
	=	0.347641	/
	=

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
	=	206.5	/	142.5
	=

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))
	=	(8.4 / (8.4 + 0))	/	(11.8 / (11.8 + 130))
	=	1	/	0.083216
	=

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 / 206.5)	/	(0 / 142.5)
	=	0	/	0
	=

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)
	=	((77.6 + 67.6) / 328.5)	/	((0 + 0) / 0)
	=	0.442009	/
	=

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
	=	(-1.7 - 0	-	-33.1)	/	328.5
	=	0.095586

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.

Lonrho Beneish M-Score Related Terms

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Lonrho (LSE:LONR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Lonrho PLC (LSE:LONR) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Level 2, 25 Berkeley Square, London, GBR, W1J 6HB

Website

http://www.lonrho.com

Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service oï¬€shore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.

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