Credo Technology Group Holding (MEX:CRDO) Beneish M-Score : -2.07 (As of Dec. 11, 2024)

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What is Credo Technology Group Holding 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 -2.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:CRDO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89 Med: -2.07 Max: -1.12
Current: -2.07

During the past 5 years, the highest Beneish M-Score of Credo Technology Group Holding was -1.12. The lowest was -2.89. And the median was -2.07.

Credo Technology Group Holding Beneish M-Score Historical Data

The historical data trend for Credo Technology Group Holding'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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Credo Technology Group Holding Beneish M-Score Chart

Credo Technology Group Holding Annual Data

Trend

Apr20

Apr21

Apr22

Apr23

Apr24

Beneish M-Score

-1.12

-2.89

Credo Technology Group Holding Quarterly Data
	Apr20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Beneish M-Score	Get a 7-Day Free Trial													-2.67	-2.82	-2.89	-1.80	-2.07

Competitive Comparison of Credo Technology Group Holding's Beneish M-Score

For the Semiconductors subindustry, Credo Technology Group Holding'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.

Credo Technology Group Holding's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Credo Technology Group Holding's Beneish M-Score distribution charts can be found below:

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

Credo Technology Group Holding 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 Credo Technology Group Holding 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 * 1.6689

0.528 * 0.9316

0.404 * 0.5655

0.892 * 1.5112

0.115 * 1.0983

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0308

4.679 * -0.070311

0.327 * 0.8143

-1.88

This Year (Oct24) TTM:

Last Year (Oct23) TTM:

Total Receivables was MXN2,038 Mil.
Revenue was 1442.942 + 1110.531 + 1037.196 + 911.335 = MXN4,502 Mil.
Gross Profit was 911.669 + 693.371 + 681.988 + 559.223 = MXN2,846 Mil.
Total Current Assets was MXN10,782 Mil.
Total Assets was MXN12,791 Mil.
Property, Plant and Equipment(Net PPE) was MXN1,671 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN301 Mil.
Selling, General, & Admin. Expense(SGA) was MXN1,429 Mil.
Total Current Liabilities was MXN994 Mil.
Long-Term Debt & Capital Lease Obligation was MXN259 Mil.
Net Income was -84.633 + -177.42 + -178.782 + 7.351 = MXN-433 Mil.
Non Operating Income was 89.62 + 102.9 + 75.048 + 73.703 = MXN341 Mil.
Cash Flow from Operations was 206.023 + -134.572 + 70.936 + -17.795 = MXN125 Mil.

Total Receivables was MXN808 Mil.
Revenue was 794.964 + 586.729 + 577.183 + 1020.167 = MXN2,979 Mil.
Gross Profit was 471.49 + 347.573 + 334.298 + 601.292 = MXN1,755 Mil.
Total Current Assets was MXN5,927 Mil.
Total Assets was MXN7,326 Mil.
Property, Plant and Equipment(Net PPE) was MXN1,056 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN212 Mil.
Selling, General, & Admin. Expense(SGA) was MXN918 Mil.
Total Current Liabilities was MXN672 Mil.
Long-Term Debt & Capital Lease Obligation was MXN210 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)
	=	(2038.255 / 4502.004)	/	(808.143 / 2979.043)
	=	0.452744	/	0.271276
	=	1.6689

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)
	=	(1754.653 / 2979.043)	/	(2846.251 / 4502.004)
	=	0.588999	/	0.632219
	=	0.9316

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 - (10781.941 + 1670.939) / 12791.07)	/	(1 - (5927.089 + 1056.371) / 7325.998)
	=	0.02644	/	0.046756
	=	0.5655

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
	=	4502.004	/	2979.043
	=	1.5112

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))
	=	(212.428 / (212.428 + 1056.371))	/	(300.514 / (300.514 + 1670.939))
	=	0.167424	/	0.152433
	=	1.0983

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)
	=	(1429.328 / 4502.004)	/	(917.544 / 2979.043)
	=	0.317487	/	0.308
	=	1.0308

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)
	=	((259.306 + 994.459) / 12791.07)	/	((209.595 + 672.203) / 7325.998)
	=	0.098019	/	0.120366
	=	0.8143

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
	=	(-433.484 - 341.271	-	124.592)	/	12791.07
	=	-0.070311

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.

Credo Technology Group Holding has a M-score of -1.88 suggests that the company is unlikely to be a manipulator.

Credo Technology Group Holding Beneish M-Score Related Terms

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Credo Technology Group Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Credo Technology Group Holding Ltd (MEX:CRDO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CRDO:USA

Address

Ugland House, PO Box 309, Grand Cayman, CYM, KY1-1104

Website

https://www.credosemi.com

Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. It has a geographic presence in Hong Kong, the United States, Mainland China, Taiwan, and the Rest of the World.