Yolo Group SpA (MIL:YOLO) Beneish M-Score : -2.02 (As of Jun. 19, 2024)

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What is Yolo Group SpA Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:YOLO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.02 Med: -2.02 Max: -2.02
Current: -2.02

During the past 4 years, the highest Beneish M-Score of Yolo Group SpA was -2.02. The lowest was -2.02. And the median was -2.02.

Yolo Group 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 Yolo Group 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 * 0.711

0.528 * 1

0.404 * 0.9985

0.892 * 2.0604

0.115 * 0.9996

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.050935

0.327 * 0.9481

-2.02

* 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 €7.06 Mil.
Revenue was €9.49 Mil.
Gross Profit was €9.49 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €24.86 Mil.
Property, Plant and Equipment(Net PPE) was €0.08 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.64 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €4.02 Mil.
Net Income was €-2.75 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €-1.48 Mil.

Total Receivables was €4.82 Mil.
Revenue was €4.61 Mil.
Gross Profit was €4.61 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €25.45 Mil.
Property, Plant and Equipment(Net PPE) was €0.05 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.44 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €4.34 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)
	=	(7.055 / 9.488)	/	(4.816 / 4.605)
	=	0.743571	/	1.04582
	=	0.711

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)
	=	(4.605 / 4.605)	/	(9.488 / 9.488)
	=	1	/	1
	=	1

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 - (0 + 0.083) / 24.855)	/	(1 - (0 + 0.046) / 25.453)
	=	0.996661	/	0.998193
	=	0.9985

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
	=	9.488	/	4.605
	=	2.0604

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))
	=	(1.441 / (1.441 + 0.046))	/	(2.637 / (2.637 + 0.083))
	=	0.969065	/	0.969485
	=	0.9996

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 / 9.488)	/	(0 / 4.605)
	=	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)
	=	((4.017 + 0) / 24.855)	/	((4.339 + 0) / 25.453)
	=	0.161617	/	0.170471
	=	0.9481

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
	=	(-2.745 - 0	-	-1.479)	/	24.855
	=	-0.050935

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.

Yolo Group SpA has a M-score of -2.02 suggests that the company is unlikely to be a manipulator.

Yolo Group SpA Beneish M-Score Related Terms

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Yolo Group SpA (MIL:YOLO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Yolo Group SpA (MIL:YOLO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

X2Y:Germany

Address

Via Fabio Filzi 27, Milan, ITA, 20124

Website

https://www.yolo-insurance.com

Yolo Group SpA operates as a digital insurance brokerage firm. The company distributes digital insurance policies. It offers end to end operations; Integrated marketplace; Customer engagement; and Remarketing Engine.