Revolve Group (MEX:RVLV) Beneish M-Score : -2.34 (As of Apr. 06, 2025)

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What is Revolve Group 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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:RVLV' s Beneish M-Score Range Over the Past 10 Years
Min: -2.61 Med: -2.18 Max: -1.09
Current: -2.34

During the past 8 years, the highest Beneish M-Score of Revolve Group was -1.09. The lowest was -2.61. And the median was -2.18.

Revolve Group Beneish M-Score Historical Data

The historical data trend for Revolve Group'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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Revolve Group Beneish M-Score Chart

Revolve Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-1.09

-2.26

-2.09

-1.99

-2.34

Revolve Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-1.99	-2.00	-2.44	-2.54	-2.34

Competitive Comparison of Revolve Group's Beneish M-Score

For the Internet Retail subindustry, Revolve Group'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.

Revolve Group's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Revolve Group's Beneish M-Score distribution charts can be found below:

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

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Revolve Group 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 Revolve Group 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 * 0.879

0.528 * 0.9874

0.404 * 1.5021

0.892 * 1.149

0.115 * 1.1286

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9638

4.679 * 0.018174

0.327 * 0.9313

-2.13

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN241 Mil.
Revenue was 6125.903 + 5575.23 + 5174.623 + 4490.631 = MXN21,366 Mil.
Gross Profit was 3217.993 + 2852.475 + 2795.758 + 2348.403 = MXN11,215 Mil.
Total Current Assets was MXN11,702 Mil.
Total Assets was MXN13,880 Mil.
Property, Plant and Equipment(Net PPE) was MXN943 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN97 Mil.
Selling, General, & Admin. Expense(SGA) was MXN9,535 Mil.
Total Current Liabilities was MXN4,090 Mil.
Long-Term Debt & Capital Lease Obligation was MXN660 Mil.
Net Income was 257.276 + 216.022 + 281.708 + 180.451 = MXN935 Mil.
Non Operating Income was 67.698 + 3.781 + 78.245 + 88.309 = MXN238 Mil.
Cash Flow from Operations was 81.713 + 178.237 + -451.939 + 637.147 = MXN445 Mil.

Total Receivables was MXN238 Mil.
Revenue was 4375.588 + 4487.16 + 4692.783 + 5039.952 = MXN18,595 Mil.
Gross Profit was 2275.381 + 2320.754 + 2532.12 + 2509.44 = MXN9,638 Mil.
Total Current Assets was MXN8,972 Mil.
Total Assets was MXN10,335 Mil.
Property, Plant and Equipment(Net PPE) was MXN750 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN89 Mil.
Selling, General, & Admin. Expense(SGA) was MXN8,610 Mil.
Total Current Liabilities was MXN3,219 Mil.
Long-Term Debt & Capital Lease Obligation was MXN579 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)
	=	(240.529 / 21366.387)	/	(238.149 / 18595.483)
	=	0.011257	/	0.012807
	=	0.879

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)
	=	(9637.695 / 18595.483)	/	(11214.629 / 21366.387)
	=	0.518282	/	0.524873
	=	0.9874

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 - (11701.883 + 942.594) / 13880.449)	/	(1 - (8972.401 + 750.313) / 10335.382)
	=	0.089044	/	0.059279
	=	1.5021

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
	=	21366.387	/	18595.483
	=	1.149

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))
	=	(88.532 / (88.532 + 750.313))	/	(97.243 / (97.243 + 942.594))
	=	0.10554	/	0.093518
	=	1.1286

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)
	=	(9534.852 / 21366.387)	/	(8610.333 / 18595.483)
	=	0.446255	/	0.463034
	=	0.9638

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)
	=	((660.396 + 4089.74) / 13880.449)	/	((579.263 + 3218.657) / 10335.382)
	=	0.342218	/	0.367468
	=	0.9313

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
	=	(935.457 - 238.033	-	445.158)	/	13880.449
	=	0.018174

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.

Revolve Group has a M-score of -2.13 suggests that the company is unlikely to be a manipulator.

Revolve Group Beneish M-Score Related Terms

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Revolve Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Revolve Group Inc (MEX:RVLV) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RVLV:USA

Address

12889 Moore Street, Cerritos, CA, USA, 90703

Website

https://www.revolve.com

The Revolve Group is an emerging e-commerce retailer, selling women's dresses, handbags, shoes, beauty products, and incidentals across its marketplace properties, Revolve and FWRD. The platform is built to suit the "next-generation customer," emphasizing mobile commerce, influencer marketing, and occupying an aspirational but attainable luxury niche. With $1.1 billion in 2024 net sales, the firm sits just outside the top 30 apparel retailers (by sales) in the US, but has consistently generated robust top-line growth as the industry continues to favor digital channels. Revolve generates approximately 18% of sales from private-label offerings, while focusing on building an inventory of unique products from emerging fashion brands with less than $10 million in annual sales.