Dorel Industries (TSX:DII.A) Beneish M-Score : -3.19 (As of Apr. 25, 2024)

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What is Dorel Industries 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 -3.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:DII.A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.7 Max: -1.09
Current: -3.19

During the past 13 years, the highest Beneish M-Score of Dorel Industries was -1.09. The lowest was -3.19. And the median was -2.70.

Dorel Industries Beneish M-Score Historical Data

The historical data trend for Dorel Industries'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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Dorel Industries Beneish M-Score Chart

Dorel Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.69

-2.70

-3.19

-1.09

-3.19

Dorel Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.09	-3.19	-3.46	-3.49	-3.19

Competitive Comparison of Dorel Industries's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Dorel Industries'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.

Dorel Industries's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Dorel Industries's Beneish M-Score distribution charts can be found below:

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

Dorel Industries 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 Dorel Industries 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 * 1.1149

0.528 * 0.7388

0.404 * 1.1985

0.892 * 0.9126

0.115 * 0.9337

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1189

4.679 * -0.134777

0.327 * 1.0637

-3.19

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$273 Mil.
Revenue was 470.471 + 486.657 + 458.647 + 455.913 = C$1,872 Mil.
Gross Profit was 95.035 + 89.298 + 80.028 + 63.917 = C$328 Mil.
Total Current Assets was C$831 Mil.
Total Assets was C$1,343 Mil.
Property, Plant and Equipment(Net PPE) was C$286 Mil.
Depreciation, Depletion and Amortization(DDA) was C$94 Mil.
Selling, General, & Admin. Expense(SGA) was C$358 Mil.
Total Current Liabilities was C$576 Mil.
Long-Term Debt & Capital Lease Obligation was C$440 Mil.
Net Income was -5.04 + -14.018 + -22.22 + -43.114 = C$-84 Mil.
Non Operating Income was -7.203 + 0.072 + 0.108 + -0.566 = C$-8 Mil.
Cash Flow from Operations was 19.885 + 17.036 + 16.641 + 50.62 = C$104 Mil.

Total Receivables was C$269 Mil.
Revenue was 462.245 + 499.069 + 547.8 + 541.892 = C$2,051 Mil.
Gross Profit was 38.854 + 51.883 + 83.65 + 91.386 = C$266 Mil.
Total Current Assets was C$926 Mil.
Total Assets was C$1,441 Mil.
Property, Plant and Equipment(Net PPE) was C$312 Mil.
Depreciation, Depletion and Amortization(DDA) was C$94 Mil.
Selling, General, & Admin. Expense(SGA) was C$351 Mil.
Total Current Liabilities was C$510 Mil.
Long-Term Debt & Capital Lease Obligation was C$516 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)
	=	(273.207 / 1871.688)	/	(268.532 / 2051.006)
	=	0.145968	/	0.130927
	=	1.1149

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)
	=	(265.773 / 2051.006)	/	(328.278 / 1871.688)
	=	0.129582	/	0.175391
	=	0.7388

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 - (831.2 + 285.77) / 1342.844)	/	(1 - (926.276 + 312.152) / 1440.619)
	=	0.168206	/	0.14035
	=	1.1985

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
	=	1871.688	/	2051.006
	=	0.9126

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))
	=	(93.532 / (93.532 + 312.152))	/	(93.696 / (93.696 + 285.77))
	=	0.230554	/	0.246915
	=	0.9337

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)
	=	(358.264 / 1871.688)	/	(350.876 / 2051.006)
	=	0.191412	/	0.171075
	=	1.1189

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)
	=	((440.388 + 576.327) / 1342.844)	/	((515.877 + 509.552) / 1440.619)
	=	0.757136	/	0.711797
	=	1.0637

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
	=	(-84.392 - -7.589	-	104.182)	/	1342.844
	=	-0.134777

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.

Dorel Industries has a M-score of -3.19 suggests that the company is unlikely to be a manipulator.

Dorel Industries Beneish M-Score Related Terms

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Dorel Industries (TSX:DII.A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Dorel Industries Inc (TSX:DII.A) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DIIBF:USA DO4B:Germany DII.B:Canada

Address

1255 Greene Avenue, Suite 300, Westmount, QC, CAN, H3Z 2A4

Website

https://www.dorel.com

Dorel Industries Inc is a Canadian company that sells juvenile products and furniture. Its segments include Dorel Home and Dorel Juvenile. Dorel Home segment is engaged in the design, sourcing, manufacturing, and distribution of ready-to-assemble furniture and home furnishings which include metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. Dorel Juvenile segment is engaged in the design, sourcing, manufacturing, distribution, and retail of children's accessories which include infant car seats, strollers, high chairs, and infant health and safety aids. Its geographical segments include Canada, the United States, Europe, Latin America, Asia, and Other countries.

Dorel Industries (TSX:DII.A) Headlines

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