Chemical Works of Gedeon Richter (LTS:0QFP) Beneish M-Score : -2.13 (As of Apr. 01, 2025)

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What is Chemical Works of Gedeon Richter 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 -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Chemical Works of Gedeon Richter's Beneish M-Score or its related term are showing as below:

LTS:0QFP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11 Med: -2.59 Max: -2.06
Current: -2.13

During the past 13 years, the highest Beneish M-Score of Chemical Works of Gedeon Richter was -2.06. The lowest was -3.11. And the median was -2.59.

Chemical Works of Gedeon Richter Beneish M-Score Historical Data

The historical data trend for Chemical Works of Gedeon Richter'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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Chemical Works of Gedeon Richter Beneish M-Score Chart

Chemical Works of Gedeon Richter Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-2.54

-2.08

-2.59

-2.26

Chemical Works of Gedeon Richter Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-2.45	-2.53	-2.69	-2.26	-2.13

Competitive Comparison of Chemical Works of Gedeon Richter's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Chemical Works of Gedeon Richter'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.

Chemical Works of Gedeon Richter's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Chemical Works of Gedeon Richter's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Chemical Works of Gedeon Richter's Beneish M-Score falls into.

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Chemical Works of Gedeon Richter 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 Chemical Works of Gedeon Richter 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 * 1.593

0.528 * 0.8805

0.404 * 1.0722

0.892 * 0.7053

0.115 * 1.4218

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0923

4.679 * 0.010312

0.327 * 0.9451

-2.13

This Year (Jun24) TTM:

Last Year (Mar23) TTM:

Total Receivables was Ft242,619 Mil.
Revenue was 0 + 203178 + 188544 + 203783 = Ft595,505 Mil.
Gross Profit was 0 + 129998 + 135019 + 128944 = Ft393,961 Mil.
Total Current Assets was Ft545,884 Mil.
Total Assets was Ft1,458,693 Mil.
Property, Plant and Equipment(Net PPE) was Ft359,921 Mil.
Depreciation, Depletion and Amortization(DDA) was Ft38,312 Mil.
Selling, General, & Admin. Expense(SGA) was Ft147,501 Mil.
Total Current Liabilities was Ft167,302 Mil.
Long-Term Debt & Capital Lease Obligation was Ft15,213 Mil.
Net Income was 0 + 36360 + 54554 + 28743 = Ft119,657 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Ft0 Mil.
Cash Flow from Operations was 0 + 28896 + 43219 + 32500 = Ft104,615 Mil.

Total Receivables was Ft215,951 Mil.
Revenue was 209653 + 223968 + 217807 + 192923 = Ft844,351 Mil.
Gross Profit was 127363 + 123760 + 130673 + 110038 = Ft491,834 Mil.
Total Current Assets was Ft573,528 Mil.
Total Assets was Ft1,369,425 Mil.
Property, Plant and Equipment(Net PPE) was Ft311,789 Mil.
Depreciation, Depletion and Amortization(DDA) was Ft49,407 Mil.
Selling, General, & Admin. Expense(SGA) was Ft191,469 Mil.
Total Current Liabilities was Ft171,629 Mil.
Long-Term Debt & Capital Lease Obligation was Ft9,664 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)
	=	(242619 / 595505)	/	(215951 / 844351)
	=	0.407417	/	0.25576
	=	1.593

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)
	=	(491834 / 844351)	/	(393961 / 595505)
	=	0.582499	/	0.661558
	=	0.8805

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 - (545884 + 359921) / 1458693)	/	(1 - (573528 + 311789) / 1369425)
	=	0.37903	/	0.353512
	=	1.0722

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
	=	595505	/	844351
	=	0.7053

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))
	=	(49407 / (49407 + 311789))	/	(38312 / (38312 + 359921))
	=	0.136787	/	0.096205
	=	1.4218

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)
	=	(147501 / 595505)	/	(191469 / 844351)
	=	0.247691	/	0.226765
	=	1.0923

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)
	=	((15213 + 167302) / 1458693)	/	((9664 + 171629) / 1369425)
	=	0.125122	/	0.132386
	=	0.9451

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
	=	(119657 - 0	-	104615)	/	1458693
	=	0.010312

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.

Chemical Works of Gedeon Richter has a M-score of -2.13 suggests that the company is unlikely to be a manipulator.

Chemical Works of Gedeon Richter Beneish M-Score Related Terms

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Chemical Works of Gedeon Richter Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Chemical Works of Gedeon Richter PLC (LTS:0QFP) » Definitions » Beneish M-Score

Traded in Other Exchanges

RICHTER:Hungary RIG2:Germany

Address

Gyomroi ut 19-21, Budapest, HUN, 1103

Website

https://www.gedeonrichter.com/hu-hu

Chemical Works of Gedeon Richter PLC is a pharmaceutical company. The company focuses on the development and manufacture of gynaecological, cardiovascular, and central nervous system products. It manufactures medicines including original, generic and licensed products for treatment in the therapeutic area. The group is active in two business segments namely, the Pharma segment comprising Women's Healthcare, Neuropsychiatry, Biotechnology, General Medicine, and Other pharma; and the Others segment includes the remaining wholesale and retail business of the Group and all other activities. The company operates internationally.

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