Burkhalter Holding AG (XSWX:BRKN) Beneish M-Score : -2.27 (As of May. 05, 2024)

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What is Burkhalter Holding 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 -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSWX:BRKN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74 Med: -2.53 Max: -1.96
Current: -2.27

During the past 13 years, the highest Beneish M-Score of Burkhalter Holding AG was -1.96. The lowest was -2.74. And the median was -2.53.

Burkhalter Holding AG Beneish M-Score Historical Data

The historical data trend for Burkhalter Holding 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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Burkhalter Holding AG Beneish M-Score Chart

Burkhalter Holding AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.63

-2.74

-2.44

-1.96

-2.27

Burkhalter Holding AG Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.44	-	-1.96	-	-2.27

Competitive Comparison of Burkhalter Holding AG's Beneish M-Score

For the Engineering & Construction subindustry, Burkhalter Holding 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.

Burkhalter Holding AG's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Burkhalter Holding AG's Beneish M-Score distribution charts can be found below:

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

Burkhalter Holding 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 Burkhalter Holding 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 * 0.7994

0.528 * 1.1475

0.404 * 1.1147

0.892 * 1.531

0.115 * 0.8257

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9356

4.679 * -0.035132

0.327 * 1.1035

-2.27

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was CHF328 Mil.
Revenue was CHF1,160 Mil.
Gross Profit was CHF637 Mil.
Total Current Assets was CHF404 Mil.
Total Assets was CHF470 Mil.
Property, Plant and Equipment(Net PPE) was CHF54 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF8 Mil.
Selling, General, & Admin. Expense(SGA) was CHF21 Mil.
Total Current Liabilities was CHF299 Mil.
Long-Term Debt & Capital Lease Obligation was CHF0 Mil.
Net Income was CHF52 Mil.
Gross Profit was CHF0 Mil.
Cash Flow from Operations was CHF68 Mil.

Total Receivables was CHF268 Mil.
Revenue was CHF758 Mil.
Gross Profit was CHF478 Mil.
Total Current Assets was CHF366 Mil.
Total Assets was CHF424 Mil.
Property, Plant and Equipment(Net PPE) was CHF48 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF6 Mil.
Selling, General, & Admin. Expense(SGA) was CHF15 Mil.
Total Current Liabilities was CHF244 Mil.
Long-Term Debt & Capital Lease Obligation was CHF0 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)
	=	(327.93 / 1159.829)	/	(267.954 / 757.552)
	=	0.28274	/	0.35371
	=	0.7994

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)
	=	(477.603 / 757.552)	/	(637.243 / 1159.829)
	=	0.630456	/	0.549428
	=	1.1475

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 - (404.236 + 53.589) / 469.887)	/	(1 - (365.98 + 48.298) / 424.043)
	=	0.02567	/	0.023028
	=	1.1147

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
	=	1159.829	/	757.552
	=	1.531

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))
	=	(5.993 / (5.993 + 48.298))	/	(8.27 / (8.27 + 53.589))
	=	0.110387	/	0.133691
	=	0.8257

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)
	=	(21.121 / 1159.829)	/	(14.744 / 757.552)
	=	0.01821	/	0.019463
	=	0.9356

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 + 298.878) / 469.887)	/	((0 + 244.41) / 424.043)
	=	0.636064	/	0.57638
	=	1.1035

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
	=	(51.869 - 0	-	68.377)	/	469.887
	=	-0.035132

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.

Burkhalter Holding AG has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Burkhalter Holding AG Beneish M-Score Related Terms

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Burkhalter Holding AG (XSWX:BRKN) Business Description

Industry

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Traded in Other Exchanges

BRKNz:UK

Address

Hohlstrasse 475, Zurich, CHE, 8048

Website

https://www.burkhalter.ch

Burkhalter Holding AG is a Switzerland-based company which provides electrical engineering services to the construction sector comprising residential and non-residential buildings as well as infrastructure facilities. It provides electrical engineering services at the place of a power station and includes all processes up to and including the regulation of electrical installations and end user machines for buildings. The company's products and services include installations, switchboards, maintenance and repairs, telematics, wiring, cabling, building automation, control & regulation systems and technical security solutions. It undertakes installations and implements systems for high and low voltage equipment in industrial, commercial, non-residential and residential properties.

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