Redan (WAR:RDN) Beneish M-Score : -3.72 (As of Dec. 13, 2024)

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What is Redan 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 -3.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAR:RDN' s Beneish M-Score Range Over the Past 10 Years
Min: -6.63 Med: -2.58 Max: 3.81
Current: -3.72

During the past 13 years, the highest Beneish M-Score of Redan was 3.81. The lowest was -6.63. And the median was -2.58.

Redan Beneish M-Score Historical Data

The historical data trend for Redan'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.

Redan Beneish M-Score Chart

Redan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-6.63

1.85

-2.08

-0.85

-0.53

Redan Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-0.60	-0.53	-1.21	-2.51	-3.72

Competitive Comparison of Redan's Beneish M-Score

For the Apparel Manufacturing subindustry, Redan'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.

Redan's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Redan's Beneish M-Score distribution charts can be found below:

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

Redan 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 Redan 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 * 2.4083

0.528 * 1.5082

0.404 * 1.0554

0.892 * 0.5092

0.115 * 0.2788

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -0.495418

0.327 * 1.4909

-3.72

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was zł29.80 Mil.
Revenue was 1.898 + 7.432 + 11.083 + 17.886 = zł38.30 Mil.
Gross Profit was 1.735 + -0.24 + 2.812 + 0.713 = zł5.02 Mil.
Total Current Assets was zł31.60 Mil.
Total Assets was zł42.45 Mil.
Property, Plant and Equipment(Net PPE) was zł0.23 Mil.
Depreciation, Depletion and Amortization(DDA) was zł1.59 Mil.
Selling, General, & Admin. Expense(SGA) was zł0.00 Mil.
Total Current Liabilities was zł60.52 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 Mil.
Net Income was -1.005 + -13.37 + -2.079 + -1.2 = zł-17.65 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.00 Mil.
Cash Flow from Operations was 3.495 + -0.13 + -0.547 + 0.556 = zł3.37 Mil.

Total Receivables was zł24.30 Mil.
Revenue was 16.562 + 16.282 + 16.645 + 25.719 = zł75.21 Mil.
Gross Profit was 3.64 + 3.259 + 3.328 + 4.641 = zł14.87 Mil.
Total Current Assets was zł51.50 Mil.
Total Assets was zł76.56 Mil.
Property, Plant and Equipment(Net PPE) was zł6.92 Mil.
Depreciation, Depletion and Amortization(DDA) was zł2.23 Mil.
Selling, General, & Admin. Expense(SGA) was zł1.96 Mil.
Total Current Liabilities was zł66.25 Mil.
Long-Term Debt & Capital Lease Obligation was zł6.97 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)
	=	(29.802 / 38.299)	/	(24.3 / 75.208)
	=	0.77814	/	0.323104
	=	2.4083

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)
	=	(14.868 / 75.208)	/	(5.02 / 38.299)
	=	0.197692	/	0.131074
	=	1.5082

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 - (31.6 + 0.23) / 42.445)	/	(1 - (51.499 + 6.92) / 76.56)
	=	0.250088	/	0.236951
	=	1.0554

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
	=	38.299	/	75.208
	=	0.5092

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))
	=	(2.228 / (2.228 + 6.92))	/	(1.591 / (1.591 + 0.23))
	=	0.243551	/	0.873696
	=	0.2788

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 / 38.299)	/	(1.961 / 75.208)
	=	0	/	0.026074
	=	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)
	=	((0 + 60.524) / 42.445)	/	((6.973 + 66.251) / 76.56)
	=	1.425939	/	0.956426
	=	1.4909

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
	=	(-17.654 - 0	-	3.374)	/	42.445
	=	-0.495418

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.

Redan has a M-score of -3.72 suggests that the company is unlikely to be a manipulator.

Redan Beneish M-Score Related Terms

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