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Compagnie Financiere Richemont Beneish M-Score

: -2.73 (As of Today)
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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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CFRHF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Med: -2.61   Max: -1.75
Current: -2.73

During the past 13 years, the highest Beneish M-Score of Compagnie Financiere Richemont was -1.75. The lowest was -3.06. And the median was -2.61.


Compagnie Financiere Richemont Beneish M-Score Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.05 -1.75 -3.06 -2.50 -2.73

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.06 - -2.50 - -2.73

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Beneish M-Score Distribution

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

* The bar in red indicates where Compagnie Financiere Richemont's Beneish M-Score falls into.



Compagnie Financiere Richemont 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 Compagnie Financiere Richemont 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 * 0.7873+0.528 * 0.9538+0.404 * 0.8608+0.892 * 1.35+0.115 * 1.0721
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9296+4.679 * -0.0641-0.327 * 1.0169
=-2.73

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $807 Mil.
Revenue was $21,124 Mil.
Gross Profit was $13,246 Mil.
Total Current Assets was $27,956 Mil.
Total Assets was $44,037 Mil.
Property, Plant and Equipment(Net PPE) was $7,258 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,710 Mil.
Selling, General, & Admin. Expense(SGA) was $8,598 Mil.
Total Current Liabilities was $11,572 Mil.
Long-Term Debt & Capital Lease Obligation was $10,012 Mil.
Net Income was $2,284 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $5,108 Mil.
Total Receivables was $760 Mil.
Revenue was $15,648 Mil.
Gross Profit was $9,358 Mil.
Total Current Assets was $25,245 Mil.
Total Assets was $42,094 Mil.
Property, Plant and Equipment(Net PPE) was $7,050 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,812 Mil.
Selling, General, & Admin. Expense(SGA) was $6,851 Mil.
Total Current Liabilities was $9,686 Mil.
Long-Term Debt & Capital Lease Obligation was $10,602 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)
=(807.26872246696 / 21124.449339207) / (759.52380952381 / 15647.619047619)
=0.0382149 / 0.04853926
=0.7873

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)
=(9358.3333333333 / 15647.619047619) / (13245.594713656 / 21124.449339207)
=0.59806756 / 0.62702675
=0.9538

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 - (27955.947136564 + 7257.7092511013) / 44037.444933921) / (1 - (25245.238095238 + 7050) / 42094.047619048)
=0.20037013 / 0.23278373
=0.8608

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
=21124.449339207 / 15647.619047619
=1.35

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))
=(1811.9047619048 / (1811.9047619048 + 7050)) / (1710.3524229075 / (1710.3524229075 + 7257.7092511013))
=0.20445997 / 0.19071595
=1.0721

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)
=(8598.0176211454 / 21124.449339207) / (6851.1904761905 / 15647.619047619)
=0.40701736 / 0.43784236
=0.9296

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)
=((10012.114537445 + 11571.585903084) / 44037.444933921) / ((10602.380952381 + 9685.7142857143) / 42094.047619048)
=0.49012154 / 0.48197064
=1.0169

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
=(2284.140969163 - 0 - 5107.9295154185) / 44037.444933921
=-0.0641

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.

Compagnie Financiere Richemont has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.


Compagnie Financiere Richemont Beneish M-Score Related Terms

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Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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