Grenke AG (WBO:GLJ) Beneish M-Score : -2.56 (As of Mar. 04, 2025)

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What is Grenke AG 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:GLJ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03 Med: -2.31 Max: 17.2
Current: -2.56

During the past 13 years, the highest Beneish M-Score of Grenke AG was 17.20. The lowest was -3.03. And the median was -2.31.

Grenke AG Beneish M-Score Historical Data

The historical data trend for Grenke AG'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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Grenke AG Beneish M-Score Chart

Grenke AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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17.20

-2.73

-2.36

-2.28

-2.46

Grenke AG 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															-2.34	-2.46	-2.20	-2.16	-2.56

Competitive Comparison of Grenke AG's Beneish M-Score

For the Credit Services subindustry, Grenke AG'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.

Grenke AG's Beneish M-Score Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Grenke AG's Beneish M-Score distribution charts can be found below:

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

Grenke AG 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 Grenke AG 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 * 0.9146

0.528 * 1.135

0.404 * 0.9824

0.892 * 1.1702

0.115 * 0.8468

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.916

4.679 * -0.037617

0.327 * 1.1137

-2.56

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €9.1 Mil.
Revenue was 198.898 + 193.271 + 176.749 + 212.206 = €781.1 Mil.
Gross Profit was 94.74 + 95.302 + 83.893 + 113.445 = €387.4 Mil.
Total Current Assets was €3,933.4 Mil.
Total Assets was €8,155.7 Mil.
Property, Plant and Equipment(Net PPE) was €135.5 Mil.
Depreciation, Depletion and Amortization(DDA) was €29.7 Mil.
Selling, General, & Admin. Expense(SGA) was €104.4 Mil.
Total Current Liabilities was €3,317.0 Mil.
Long-Term Debt & Capital Lease Obligation was €2,765.5 Mil.
Net Income was 13.472 + 26.402 + 20.92 + 24.123 = €84.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 720.789 + -92.025 + 28.697 + -265.752 = €391.7 Mil.

Total Receivables was €8.5 Mil.
Revenue was 165.163 + 159.092 + 150.675 + 192.578 = €667.5 Mil.
Gross Profit was 88.557 + 85.577 + 84.887 + 116.706 = €375.7 Mil.
Total Current Assets was €3,365.6 Mil.
Total Assets was €7,122.1 Mil.
Property, Plant and Equipment(Net PPE) was €123.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €22.2 Mil.
Selling, General, & Admin. Expense(SGA) was €97.4 Mil.
Total Current Liabilities was €2,071.1 Mil.
Long-Term Debt & Capital Lease Obligation was €2,698.0 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)
	=	(9.077 / 781.124)	/	(8.481 / 667.508)
	=	0.01162	/	0.012705
	=	0.9146

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)
	=	(375.727 / 667.508)	/	(387.38 / 781.124)
	=	0.56288	/	0.495926
	=	1.135

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 - (3933.373 + 135.498) / 8155.669)	/	(1 - (3365.618 + 123.754) / 7122.05)
	=	0.501099	/	0.510061
	=	0.9824

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
	=	781.124	/	667.508
	=	1.1702

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))
	=	(22.201 / (22.201 + 123.754))	/	(29.67 / (29.67 + 135.498))
	=	0.152109	/	0.179635
	=	0.8468

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)
	=	(104.381 / 781.124)	/	(97.374 / 667.508)
	=	0.133629	/	0.145877
	=	0.916

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)
	=	((2765.463 + 3316.971) / 8155.669)	/	((2698.025 + 2071.1) / 7122.05)
	=	0.745792	/	0.669628
	=	1.1137

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
	=	(84.917 - 0	-	391.709)	/	8155.669
	=	-0.037617

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.

Grenke AG has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Grenke AG Beneish M-Score Related Terms

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Grenke AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Grenke AG (WBO:GLJ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

0R97:UK GLJ:Germany

Address

Neuer Markt 2, Baden-Baden, DEU, 76532

Website

https://www.grenke.de

Grenke AG is a financial services company that, under a franchise model, provides operational infrastructure, and other support services. The firm retains the right to acquire the franchisee based on a predetermined formula and time frame. Grenke's reporting segments include; The Leasing segment which generates key revenue, and consists of financing to commercial lessees, rental, service, protection and maintenance offerings, and the disposal of used equipment. The Banking segment acts as a financing partner, particularly to small- and medium-sized companies, and the Factoring segment offers traditional factoring services with a focus on small-ticket factoring. Geographically, the majority of the company's revenue is generated from France and rest from Italy, Germany and other regions.

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