Brown (N) Group (Brown (N) Group) Beneish M-Score : -2.95 (As of Apr. 29, 2024)

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What is Brown (N) 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 -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NBRNF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.62 Max: -2.19
Current: -2.95

During the past 13 years, the highest Beneish M-Score of Brown (N) Group was -2.19. The lowest was -3.02. And the median was -2.62.

Brown (N) Group Beneish M-Score Historical Data

The historical data trend for Brown (N) 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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Brown (N) Group Beneish M-Score Chart

Brown (N) Group Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Beneish M-Score

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-2.65

-2.59

-3.02

-2.84

-2.95

Brown (N) Group Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.84	-	-2.95	-

Competitive Comparison of Brown (N) Group's Beneish M-Score

For the Internet Retail subindustry, Brown (N) 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.

Brown (N) Group's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Brown (N) Group's Beneish M-Score falls into.

Brown (N) 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 Brown (N) 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 * 1.0001

0.528 * 1.068

0.404 * 0.7504

0.892 * 0.8449

0.115 * 0.9514

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0692

4.679 * -0.069756

0.327 * 1.0541

-3.04

This Year (Feb23) TTM:

Last Year (Feb22) TTM:

Total Receivables was $609.5 Mil.
Revenue was $818.2 Mil.
Gross Profit was $377.8 Mil.
Total Current Assets was $789.3 Mil.
Total Assets was $990.3 Mil.
Property, Plant and Equipment(Net PPE) was $62.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.1 Mil.
Selling, General, & Admin. Expense(SGA) was $232.2 Mil.
Total Current Liabilities was $100.2 Mil.
Long-Term Debt & Capital Lease Obligation was $402.3 Mil.
Net Income was $-62.1 Mil.
Gross Profit was $0.0 Mil.
Cash Flow from Operations was $7.0 Mil.

Total Receivables was $721.4 Mil.
Revenue was $968.5 Mil.
Gross Profit was $477.5 Mil.
Total Current Assets was $901.5 Mil.
Total Assets was $1,208.1 Mil.
Property, Plant and Equipment(Net PPE) was $80.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $51.6 Mil.
Selling, General, & Admin. Expense(SGA) was $257.1 Mil.
Total Current Liabilities was $171.7 Mil.
Long-Term Debt & Capital Lease Obligation was $409.9 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)
	=	(609.541 / 818.237)	/	(721.38 / 968.471)
	=	0.744944	/	0.744865
	=	1.0001

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)
	=	(477.537 / 968.471)	/	(377.778 / 818.237)
	=	0.493083	/	0.461698
	=	1.068

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 - (789.251 + 62.077) / 990.338)	/	(1 - (901.488 + 80.65) / 1208.119)
	=	0.140366	/	0.187052
	=	0.7504

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
	=	818.237	/	968.471
	=	0.8449

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))
	=	(51.556 / (51.556 + 80.65))	/	(43.116 / (43.116 + 62.077))
	=	0.389967	/	0.409875
	=	0.9514

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)
	=	(232.246 / 818.237)	/	(257.104 / 968.471)
	=	0.283837	/	0.265474
	=	1.0692

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)
	=	((402.295 + 100.242) / 990.338)	/	((409.878 + 171.719) / 1208.119)
	=	0.50744	/	0.481407
	=	1.0541

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
	=	(-62.077 - 0	-	7.005)	/	990.338
	=	-0.069756

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.

Brown (N) Group has a M-score of -3.04 suggests that the company is unlikely to be a manipulator.

Brown (N) Group Beneish M-Score Related Terms

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Brown (N) Group (Brown (N) Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Brown (N) Group PLC (OTCPK:NBRNF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BWNG:UK

Address

40 Lever Street, Griffin House, Manchester, GBR, M60 6ES

Website

https://www.nbrown.co.uk

Brown (N) Group PLC is an apparel, footwear, and homeware retailer, based in the UK. The company's main brands are Simply Be JD Williams, and Jacamo. The JD Williams brand is targeted to plus-size consumers with ranges for women, men, home, and kids. Simply Be offers fashion items to women of all sizes, while Jacamo offers collections for men in a wide size range (from small to 5XL). The main markets are the United Kingdom, Ireland, and the United States. The company offers also credit-line facilities to its customers. N Brown Group offers products mainly through the online channel; however, the company also owns stores.