PHC Holdings (PHC Holdings) Beneish M-Score : -2.83 (As of Jun. 23, 2024)

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What is PHC Holdings 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PHCCF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98 Med: -2.83 Max: -2.57
Current: -2.83

During the past 6 years, the highest Beneish M-Score of PHC Holdings was -2.57. The lowest was -2.98. And the median was -2.83.

PHC Holdings Beneish M-Score Historical Data

The historical data trend for PHC Holdings'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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PHC Holdings Beneish M-Score Chart

PHC Holdings Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.98

-2.57

-2.83

PHC Holdings Quarterly Data
	Mar19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial													-2.57	-2.62	-2.81	-3.05	-2.83

Competitive Comparison of PHC Holdings's Beneish M-Score

For the Medical Devices subindustry, PHC Holdings'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.

PHC Holdings's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, PHC Holdings's Beneish M-Score distribution charts can be found below:

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

PHC Holdings 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 PHC Holdings 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 * 1.0238

0.528 * 1.0621

0.404 * 1.0278

0.892 * 0.9283

0.115 * 1.0216

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0723

4.679 * -0.098616

0.327 * 1.0034

-2.95

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $493 Mil.
Revenue was 648.898 + 624.136 + 578.261 + 575.312 = $2,427 Mil.
Gross Profit was 280.966 + 283.307 + 254.949 + 264.548 = $1,084 Mil.
Total Current Assets was $1,254 Mil.
Total Assets was $3,767 Mil.
Property, Plant and Equipment(Net PPE) was $332 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General, & Admin. Expense(SGA) was $1,027 Mil.
Total Current Liabilities was $984 Mil.
Long-Term Debt & Capital Lease Obligation was $1,656 Mil.
Net Income was -11.594 + -60.404 + 5.019 + -22.63 = $-90 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 85.19 + 40.727 + 97.771 + 58.164 = $282 Mil.

Total Receivables was $518 Mil.
Revenue was 683.294 + 700.568 + 621.708 + 608.397 = $2,614 Mil.
Gross Profit was 315.993 + 340.148 + 299.16 + 284.693 = $1,240 Mil.
Total Current Assets was $1,478 Mil.
Total Assets was $4,201 Mil.
Property, Plant and Equipment(Net PPE) was $356 Mil.
Depreciation, Depletion and Amortization(DDA) was $213 Mil.
Selling, General, & Admin. Expense(SGA) was $1,032 Mil.
Total Current Liabilities was $971 Mil.
Long-Term Debt & Capital Lease Obligation was $1,963 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)
	=	(492.609 / 2426.607)	/	(518.313 / 2613.967)
	=	0.203003	/	0.198286
	=	1.0238

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)
	=	(1239.994 / 2613.967)	/	(1083.77 / 2426.607)
	=	0.474372	/	0.446619
	=	1.0621

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 - (1253.843 + 331.788) / 3766.735)	/	(1 - (1478.203 + 356.064) / 4201.324)
	=	0.579044	/	0.563407
	=	1.0278

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
	=	2426.607	/	2613.967
	=	0.9283

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))
	=	(212.735 / (212.735 + 356.064))	/	(191.619 / (191.619 + 331.788))
	=	0.374007	/	0.366099
	=	1.0216

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)
	=	(1027.394 / 2426.607)	/	(1032.073 / 2613.967)
	=	0.423387	/	0.39483
	=	1.0723

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)
	=	((1656.156 + 983.856) / 3766.735)	/	((1963.149 + 971.404) / 4201.324)
	=	0.700875	/	0.698483
	=	1.0034

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
	=	(-89.609 - 0	-	281.852)	/	3766.735
	=	-0.098616

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.

PHC Holdings has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

PHC Holdings Beneish M-Score Related Terms

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