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Italian Wine Brands SpA (MIL:IWB) Beneish M-Score : -2.91 (As of Jun. 15, 2024)


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What is Italian Wine Brands SpA 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 -2.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Italian Wine Brands SpA's Beneish M-Score or its related term are showing as below:

MIL:IWB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Med: -2.53   Max: -1.59
Current: -2.91

During the past 9 years, the highest Beneish M-Score of Italian Wine Brands SpA was -1.59. The lowest was -2.91. And the median was -2.53.


Italian Wine Brands SpA Beneish M-Score Historical Data

The historical data trend for Italian Wine Brands SpA'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.

Italian Wine Brands SpA Beneish M-Score Chart

Italian Wine Brands SpA Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -2.47 -2.28 -1.59 -2.53 -2.91

Italian Wine Brands SpA Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -1.59 - -2.53 - -2.91

Competitive Comparison of Italian Wine Brands SpA's Beneish M-Score

For the Beverages - Wineries & Distilleries subindustry, Italian Wine Brands SpA'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.


Italian Wine Brands SpA's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Italian Wine Brands SpA's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Italian Wine Brands SpA's Beneish M-Score falls into.



Italian Wine Brands SpA 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 Italian Wine Brands SpA 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 * 0.7732+0.528 * 0.8268+0.404 * 1.0464+0.892 * 1.0985+0.115 * 0.8053
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.050648-0.327 * 0.9259
=-2.91

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was €52.8 Mil.
Revenue was €429.1 Mil.
Gross Profit was €63.9 Mil.
Total Current Assets was €212.1 Mil.
Total Assets was €537.1 Mil.
Property, Plant and Equipment(Net PPE) was €67.3 Mil.
Depreciation, Depletion and Amortization(DDA) was €12.0 Mil.
Selling, General, & Admin. Expense(SGA) was €0.0 Mil.
Total Current Liabilities was €160.7 Mil.
Long-Term Debt & Capital Lease Obligation was €155.4 Mil.
Net Income was €16.3 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €43.5 Mil.
Total Receivables was €62.2 Mil.
Revenue was €390.7 Mil.
Gross Profit was €48.1 Mil.
Total Current Assets was €234.1 Mil.
Total Assets was €561.3 Mil.
Property, Plant and Equipment(Net PPE) was €69.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €9.7 Mil.
Selling, General, & Admin. Expense(SGA) was €0.0 Mil.
Total Current Liabilities was €190.5 Mil.
Long-Term Debt & Capital Lease Obligation was €166.4 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)
=(52.8 / 429.127) / (62.167 / 390.654)
=0.12304 / 0.159136
=0.7732

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)
=(48.061 / 390.654) / (63.853 / 429.127)
=0.123027 / 0.148797
=0.8268

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 - (212.091 + 67.288) / 537.056) / (1 - (234.101 + 69.841) / 561.317)
=0.479795 / 0.45852
=1.0464

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
=429.127 / 390.654
=1.0985

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))
=(9.666 / (9.666 + 69.841)) / (11.965 / (11.965 + 67.288))
=0.121574 / 0.150972
=0.8053

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)
=(0 / 429.127) / (0 / 390.654)
=0 / 0
=1

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)
=((155.445 + 160.675) / 537.056) / ((166.352 + 190.484) / 561.317)
=0.588616 / 0.635712
=0.9259

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
=(16.3 - 0 - 43.501) / 537.056
=-0.050648

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.

Italian Wine Brands SpA has a M-score of -2.91 suggests that the company is unlikely to be a manipulator.


Italian Wine Brands SpA Beneish M-Score Related Terms

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Italian Wine Brands SpA (MIL:IWB) Business Description

Traded in Other Exchanges
Address
Viale Abruzzi 94, Milan, ITA, 20131
Italian Wine Brands SpA through its subsidiaries is engaged in the production and distribution of wine in Italy. The group works through two different sales channels namely Distance Selling and Wholesale. The company also offers gourmet food products, coffee, and extra virgin olive oil, to Terre dei Gigli and Italian Art Cafe brands. The company operates in Europe and rest of the world.

Italian Wine Brands SpA (MIL:IWB) Headlines

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