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Signify NV (LTS:0RHI) Beneish M-Score : -2.80 (As of Dec. 15, 2024)


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What is Signify NV 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 -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LTS:0RHI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95   Med: -2.78   Max: -2.02
Current: -2.8

During the past 12 years, the highest Beneish M-Score of Signify NV was -2.02. The lowest was -2.95. And the median was -2.78.


Signify NV Beneish M-Score Historical Data

The historical data trend for Signify NV'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.

* Premium members only.

Signify NV Beneish M-Score Chart

Signify NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.72 -2.91 -2.62 -2.33 -2.89

Signify NV Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.92 -2.89 -2.88 -2.75 -2.80

Competitive Comparison of Signify NV's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Signify NV'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.


Signify NV's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Signify NV's Beneish M-Score distribution charts can be found below:

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



Signify NV 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 Signify NV 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 * 1.0463+0.528 * 0.9341+0.404 * 1.0122+0.892 * 0.8954+0.115 * 0.9736
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0699+4.679 * -0.049658-0.327 * 0.9881
=-2.80

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was €1,024 Mil.
Revenue was 1537 + 1483 + 1468 + 1734 = €6,222 Mil.
Gross Profit was 619 + 588 + 582 + 685 = €2,474 Mil.
Total Current Assets was €2,957 Mil.
Total Assets was €7,310 Mil.
Property, Plant and Equipment(Net PPE) was €571 Mil.
Depreciation, Depletion and Amortization(DDA) was €260 Mil.
Selling, General, & Admin. Expense(SGA) was €1,801 Mil.
Total Current Liabilities was €2,544 Mil.
Long-Term Debt & Capital Lease Obligation was €1,141 Mil.
Net Income was 106 + 62 + 44 + 56 = €268 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 136 + 70 + 103 + 322 = €631 Mil.
Total Receivables was €1,093 Mil.
Revenue was 1649 + 1644 + 1678 + 1978 = €6,949 Mil.
Gross Profit was 635 + 634 + 605 + 707 = €2,581 Mil.
Total Current Assets was €3,281 Mil.
Total Assets was €8,066 Mil.
Property, Plant and Equipment(Net PPE) was €662 Mil.
Depreciation, Depletion and Amortization(DDA) was €290 Mil.
Selling, General, & Admin. Expense(SGA) was €1,880 Mil.
Total Current Liabilities was €2,845 Mil.
Long-Term Debt & Capital Lease Obligation was €1,270 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)
=(1024 / 6222) / (1093 / 6949)
=0.164577 / 0.157289
=1.0463

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)
=(2581 / 6949) / (2474 / 6222)
=0.37142 / 0.397621
=0.9341

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 - (2957 + 571) / 7310) / (1 - (3281 + 662) / 8066)
=0.517373 / 0.511158
=1.0122

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
=6222 / 6949
=0.8954

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))
=(290 / (290 + 662)) / (260 / (260 + 571))
=0.304622 / 0.312876
=0.9736

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)
=(1801 / 6222) / (1880 / 6949)
=0.289457 / 0.270543
=1.0699

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)
=((1141 + 2544) / 7310) / ((1270 + 2845) / 8066)
=0.504104 / 0.510166
=0.9881

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
=(268 - 0 - 631) / 7310
=-0.049658

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.

Signify NV has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.


Signify NV Beneish M-Score Related Terms

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Signify NV Business Description

Address
High Tech Campus 48, Eindhoven, NLD, 5656 AE
Signify NV is a lighting solutions provider based in the Netherlands. Its product portfolio includes luminaires, lamps, LED lamps, LED tubes, and decorative lighting. The company operates through three segments, with the Digital Solutions segment being the largest. Signify generates most of its revenues from this segment and operates mainly in Europe, the Americas, and other international markets.

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