Svenska Cellulosa AB (Svenska Cellulosa AB) Beneish M-Score : -2.47 (As of Apr. 29, 2024)

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What is Svenska Cellulosa AB 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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SVCBF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74 Med: -2.23 Max: 8.32
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Svenska Cellulosa AB was 8.32. The lowest was -2.74. And the median was -2.23.

Svenska Cellulosa AB Beneish M-Score Historical Data

The historical data trend for Svenska Cellulosa AB'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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Svenska Cellulosa AB Beneish M-Score Chart

Svenska Cellulosa AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.17

-2.16

-2.19

-2.27

-2.47

Svenska Cellulosa AB Quarterly Data
	Jun19	Sep19	Dec19	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															-2.42	-2.45	-2.65	-2.47	-

Competitive Comparison of Svenska Cellulosa AB's Beneish M-Score

For the Lumber & Wood Production subindustry, Svenska Cellulosa AB'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.

Svenska Cellulosa AB's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Svenska Cellulosa AB's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Svenska Cellulosa AB's Beneish M-Score falls into.

Svenska Cellulosa AB 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 Svenska Cellulosa AB 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 * 1.2262

0.528 * 1.0104

0.404 * 0.9646

0.892 * 0.8497

0.115 * 0.9132

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * 0.000472

0.327 * 1.0534

-2.27

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $407 Mil.
Revenue was 437.794 + 427.39 + 388.099 + 425.477 = $1,679 Mil.
Gross Profit was 362.395 + 392.977 + 336.407 + 351.654 = $1,443 Mil.
Total Current Assets was $1,167 Mil.
Total Assets was $14,453 Mil.
Property, Plant and Equipment(Net PPE) was $7,170 Mil.
Depreciation, Depletion and Amortization(DDA) was $189 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $945 Mil.
Long-Term Debt & Capital Lease Obligation was $44 Mil.
Net Income was 75.783 + 83.255 + 60.804 + 86.08 = $306 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 54.748 + 31.684 + 132.073 + 80.601 = $299 Mil.

Total Receivables was $391 Mil.
Revenue was 459.418 + 469.551 + 458.933 + 587.848 = $1,976 Mil.
Gross Profit was 392.41 + 402.101 + 409.437 + 512.511 = $1,716 Mil.
Total Current Assets was $951 Mil.
Total Assets was $13,210 Mil.
Property, Plant and Equipment(Net PPE) was $6,464 Mil.
Depreciation, Depletion and Amortization(DDA) was $156 Mil.
Selling, General, & Admin. Expense(SGA) was $441 Mil.
Total Current Liabilities was $857 Mil.
Long-Term Debt & Capital Lease Obligation was $0 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)
	=	(407.154 / 1678.76)	/	(390.787 / 1975.75)
	=	0.242533	/	0.197792
	=	1.2262

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)
	=	(1716.459 / 1975.75)	/	(1443.433 / 1678.76)
	=	0.868763	/	0.859821
	=	1.0104

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 - (1167.481 + 7170.478) / 14453.334)	/	(1 - (951.29 + 6464.21) / 13210.389)
	=	0.423112	/	0.438661
	=	0.9646

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
	=	1678.76	/	1975.75
	=	0.8497

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))
	=	(155.607 / (155.607 + 6464.21))	/	(189.451 / (189.451 + 7170.478))
	=	0.023506	/	0.025741
	=	0.9132

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 / 1678.76)	/	(440.586 / 1975.75)
	=	0	/	0.222997
	=	0

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)
	=	((43.606 + 944.647) / 14453.334)	/	((0 + 857.459) / 13210.389)
	=	0.068375	/	0.064908
	=	1.0534

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
	=	(305.922 - 0	-	299.106)	/	14453.334
	=	0.000472

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.

Svenska Cellulosa AB has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Svenska Cellulosa AB Beneish M-Score Related Terms

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Svenska Cellulosa AB (Svenska Cellulosa AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Svenska Cellulosa AB (OTCPK:SVCBF) » Definitions » Beneish M-Score

Traded in Other Exchanges

SCABY:USA SCA B:Sweden SCA A:Sweden SCABs:UK 0MCK:UK SCA:Germany

Address

Skepparplatsen 1, Sundsvall, SWE, SE-851 88

Website

https://www.sca.com

Svenska Cellulosa AB is Europe's private forest owner, engaged in four business segments; the Forest segment supplies its industries with timber. The segment includes managing and harvesting on its own forest land, sourcing timber from other forest owners, and transporting the timber to its industries, The Wood segment includes five sawmills in northern Sweden and wood processing and distribution to the building materials trade in Sweden and France, The Pulp segment encompasses the production and sale of bleached softwood kraft pulp (NBSK) and chemi-thermomechanical pulp (CTMP), which are produced at the Ostrand pulp mill, and The Containerboard segment includes packaging paper with kraft liner manufacturing at the Obbola and Munksund paper mills.