Realco NV (XBRU:REAL) Beneish M-Score : -1.62 (As of May. 25, 2024)

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What is Realco NV 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.

Warning Sign:

Beneish M-Score -1.62 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XBRU:REAL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.52 Med: -1.98 Max: -0.98
Current: -1.62

During the past 13 years, the highest Beneish M-Score of Realco NV was -0.98. The lowest was -2.52. And the median was -1.98.

Realco NV Beneish M-Score Historical Data

The historical data trend for Realco NV'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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Realco NV Beneish M-Score Chart

Realco NV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.24

-2.22

-1.73

-0.98

-1.62

Realco NV Semi-Annual Data
	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Beneish M-Score	Get a 7-Day Free Trial										-2.24	-2.22	-1.73	-0.98	-1.62

Competitive Comparison of Realco NV's Beneish M-Score

For the Household & Personal Products subindustry, Realco NV'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.

Realco NV's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Realco NV's Beneish M-Score distribution charts can be found below:

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

Realco NV 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 Realco NV 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 * 1.7218

0.528 * 0.9059

0.404 * 1.4353

0.892 * 0.7138

0.115 * 4.0466

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.007131

0.327 * 1.1799

-1.62

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was €4.31 Mil.
Revenue was €9.72 Mil.
Gross Profit was €2.96 Mil.
Total Current Assets was €7.25 Mil.
Total Assets was €17.39 Mil.
Property, Plant and Equipment(Net PPE) was €7.80 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.36 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €4.16 Mil.
Long-Term Debt & Capital Lease Obligation was €4.04 Mil.
Net Income was €0.12 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €0.00 Mil.

Total Receivables was €3.51 Mil.
Revenue was €13.62 Mil.
Gross Profit was €3.76 Mil.
Total Current Assets was €9.99 Mil.
Total Assets was €13.36 Mil.
Property, Plant and Equipment(Net PPE) was €2.11 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.45 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €3.39 Mil.
Long-Term Debt & Capital Lease Obligation was €1.94 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)
	=	(4.31 / 9.723)	/	(3.507 / 13.622)
	=	0.443279	/	0.257451
	=	1.7218

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)
	=	(3.762 / 13.622)	/	(2.964 / 9.723)
	=	0.276171	/	0.304844
	=	0.9059

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 - (7.245 + 7.804) / 17.39)	/	(1 - (9.993 + 2.113) / 13.359)
	=	0.134618	/	0.093794
	=	1.4353

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
	=	9.723	/	13.622
	=	0.7138

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))
	=	(0.453 / (0.453 + 2.113))	/	(0.356 / (0.356 + 7.804))
	=	0.176539	/	0.043627
	=	4.0466

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 / 9.723)	/	(0 / 13.622)
	=	0	/	0
	=	1

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)
	=	((4.04 + 4.157) / 17.39)	/	((1.943 + 3.394) / 13.359)
	=	0.471363	/	0.399506
	=	1.1799

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
	=	(0.124 - 0	-	0)	/	17.39
	=	0.007131

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.

Realco NV has a M-score of -1.62 signals that the company is likely to be a manipulator.

Realco NV Beneish M-Score Related Terms

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Realco NV (XBRU:REAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Realco NV (XBRU:REAL) » Definitions » Beneish M-Score

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Address

Avenue Albert Einstein 15, Louvain-la-Neuve, BEL, 1348

Website

https://www.realco.be

Realco NV Formerly Realco SA is specializes in environmental biotechnology. It develops makes and sells cleaning and purification products based on enzymes and green chemistry technology.