Valtecne SPA (MIL:VLT) Beneish M-Score : -2.08 (As of Apr. 30, 2024)

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What is Valtecne 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 -2.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:VLT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.08 Med: -2.08 Max: -2.08
Current: -2.08

During the past 3 years, the highest Beneish M-Score of Valtecne SPA was -2.08. The lowest was -2.08. And the median was -2.08.

Valtecne SPA Beneish M-Score Historical Data

The historical data trend for Valtecne 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.

Valtecne SPA Beneish M-Score Chart

Valtecne SPA Annual Data

Trend

Dec20

Dec21

Dec22

Beneish M-Score

-2.08

Valtecne SPA Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial			-	-	-	-2.08	-

Competitive Comparison of Valtecne SPA's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Valtecne 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.

Valtecne SPA's Beneish M-Score Distribution in the Industrial Products Industry

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

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

Valtecne 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 Valtecne SPA 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 * 0.9113

0.528 * 1.0316

0.404 * 1.2265

0.892 * 1.2846

0.115 * 0.956

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.027349

0.327 * 1.0069

-2.08

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was €8.05 Mil.
Revenue was €23.34 Mil.
Gross Profit was €13.02 Mil.
Total Current Assets was €20.65 Mil.
Total Assets was €28.05 Mil.
Property, Plant and Equipment(Net PPE) was €6.65 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.15 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €11.68 Mil.
Long-Term Debt & Capital Lease Obligation was €5.04 Mil.
Net Income was €2.30 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €1.53 Mil.

Total Receivables was €6.88 Mil.
Revenue was €18.17 Mil.
Gross Profit was €10.46 Mil.
Total Current Assets was €15.79 Mil.
Total Assets was €22.09 Mil.
Property, Plant and Equipment(Net PPE) was €5.82 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.95 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €8.38 Mil.
Long-Term Debt & Capital Lease Obligation was €4.69 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)
	=	(8.053 / 23.342)	/	(6.879 / 18.171)
	=	0.345	/	0.37857
	=	0.9113

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)
	=	(10.457 / 18.171)	/	(13.021 / 23.342)
	=	0.575477	/	0.557836
	=	1.0316

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 - (20.652 + 6.647) / 28.045)	/	(1 - (15.792 + 5.815) / 22.086)
	=	0.0266	/	0.021688
	=	1.2265

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
	=	23.342	/	18.171
	=	1.2846

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))
	=	(0.952 / (0.952 + 5.815))	/	(1.147 / (1.147 + 6.647))
	=	0.140683	/	0.147164
	=	0.956

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 / 23.342)	/	(0 / 18.171)
	=	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)
	=	((5.035 + 11.675) / 28.045)	/	((4.689 + 8.38) / 22.086)
	=	0.595828	/	0.591732
	=	1.0069

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
	=	(2.3 - 0	-	1.533)	/	28.045
	=	0.027349

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.

Valtecne SPA has a M-score of -2.08 suggests that the company is unlikely to be a manipulator.

Valtecne SPA Beneish M-Score Related Terms

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