RH Beneish M-Score Historical Data
The historical data trend for RH'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.
RH Beneish M-Score Chart
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RH Annual Data
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Trend |
Jan15 |
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Jan18 |
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Jan20 |
Jan21 |
Jan22 |
Jan23 |
Jan24 |
| Beneish M-Score |
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-3.10 |
-2.20 |
-2.44 |
-2.06 |
-2.47 |
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RH Quarterly Data
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Jan20 |
Apr20 |
Jul20 |
Oct20 |
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Apr21 |
Jul21 |
Oct21 |
Jan22 |
Apr22 |
Jul22 |
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Jan23 |
Apr23 |
Jul23 |
Oct23 |
Jan24 |
Apr24 |
Jul24 |
Oct24 |
| Beneish M-Score |
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-2.95 |
-2.47 |
-2.52 |
-2.31 |
-2.23 |
Competitive Comparison of RH's Beneish M-Score
For the Specialty Retail subindustry, RH'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.
RH's Beneish M-Score Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, RH's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where RH's Beneish M-Score falls into.
RH 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 RH 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 * 1.0447 | + | 0.528 * 1.0617 | + | 0.404 * 1.0179 | + | 0.892 * 1.0141 | + | 0.115 * 0.9386 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.018 | + | 4.679 * 0.032504 | - | 0.327 * 0.9643 |
| = | -2.23 |
* 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 (Oct24) TTM: | Last Year (Oct23) TTM: |
Total Receivables was $109 Mil.
Revenue was 811.732 + 829.655 + 726.96 + 738.26 = $3,107 Mil.
Gross Profit was 361.34 + 374.757 + 316.038 + 320.951 = $1,373 Mil.
Total Current Assets was $1,278 Mil.
Total Assets was $4,464 Mil.
Property, Plant and Equipment(Net PPE) was $2,567 Mil.
Depreciation, Depletion and Amortization(DDA) was $131 Mil.
Selling, General, & Admin. Expense(SGA) was $1,057 Mil.
Total Current Liabilities was $896 Mil.
Long-Term Debt & Capital Lease Obligation was $3,731 Mil.
Net Income was 33.168 + 28.952 + -3.625 + 11.381 = $70 Mil.
Non Operating Income was -0.027 + 0.663 + -1.165 + 3.388 = $3 Mil.
Cash Flow from Operations was -31.437 + 11.176 + 56.13 + -113.958 = $-78 Mil.
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Total Receivables was $103 Mil.
Revenue was 751.225 + 800.479 + 739.162 + 772.499 = $3,063 Mil.
Gross Profit was 340.45 + 380.073 + 347.545 + 369.406 = $1,437 Mil.
Total Current Assets was $1,287 Mil.
Total Assets was $4,241 Mil.
Property, Plant and Equipment(Net PPE) was $2,376 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General, & Admin. Expense(SGA) was $1,023 Mil.
Total Current Liabilities was $935 Mil.
Long-Term Debt & Capital Lease Obligation was $3,623 Mil.
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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) |
| = | (109.025 / 3106.607) | / | (102.908 / 3063.365) |
| = | 0.035095 | / | 0.033593 |
| | = | 1.0447 |
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) |
| = | (1437.474 / 3063.365) | / | (1373.086 / 3106.607) |
| = | 0.469247 | / | 0.441989 |
| | = | 1.0617 |
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 - (1277.751 + 2566.943) / 4464.222) | / | (1 - (1286.88 + 2375.59) / 4240.619) |
| = | 0.138776 | / | 0.136336 |
| | = | 1.0179 |
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 |
| = | 3106.607 | / | 3063.365 |
| | = | 1.0141 |
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)) |
| = | (113.188 / (113.188 + 2375.59)) | / | (130.711 / (130.711 + 2566.943)) |
| = | 0.045479 | / | 0.048454 |
| | = | 0.9386 |
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) |
| = | (1056.573 / 3106.607) | / | (1023.453 / 3063.365) |
| = | 0.340105 | / | 0.334094 |
| | = | 1.018 |
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) |
| = | ((3731.329 + 896.267) / 4464.222) | / | ((3623.42 + 934.974) / 4240.619) |
| = | 1.036596 | / | 1.074936 |
| | = | 0.9643 |
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 |
| = | (69.876 - 2.859 | - | -78.089) | / | 4464.222 |
| | = | 0.032504 |
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.
RH has a M-score of -2.23 suggests that the company is unlikely to be a manipulator.
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