Leclanche (XSWX:LECN) Beneish M-Score : -4.78 (As of May. 26, 2024)

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What is Leclanche 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 -4.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSWX:LECN' s Beneish M-Score Range Over the Past 10 Years
Min: -19.07 Med: -4.25 Max: 1.7
Current: -4.78

During the past 13 years, the highest Beneish M-Score of Leclanche was 1.70. The lowest was -19.07. And the median was -4.25.

Leclanche Beneish M-Score Historical Data

The historical data trend for Leclanche'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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Leclanche Beneish M-Score Chart

Leclanche Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-4.40

-6.18

-4.19

-19.07

-4.78

Leclanche Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial															-	-19.07	-	-4.78	-

Competitive Comparison of Leclanche's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Leclanche'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.

Leclanche's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Leclanche's Beneish M-Score distribution charts can be found below:

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

Leclanche 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 Leclanche 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 * 1.4428

0.528 * -0.2964

0.404 * 1.4924

0.892 * 0.9493

0.115 * 0.8706

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.6361

4.679 * -0.429897

0.327 * 1.1268

-4.78

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was CHF10.03 Mil.
Revenue was CHF17.97 Mil.
Gross Profit was CHF-1.58 Mil.
Total Current Assets was CHF31.21 Mil.
Total Assets was CHF90.82 Mil.
Property, Plant and Equipment(Net PPE) was CHF41.63 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF6.94 Mil.
Selling, General, & Admin. Expense(SGA) was CHF9.95 Mil.
Total Current Liabilities was CHF72.60 Mil.
Long-Term Debt & Capital Lease Obligation was CHF59.38 Mil.
Net Income was CHF-85.55 Mil.
Gross Profit was CHF0.00 Mil.
Cash Flow from Operations was CHF-46.51 Mil.

Total Receivables was CHF7.32 Mil.
Revenue was CHF18.93 Mil.
Gross Profit was CHF0.49 Mil.
Total Current Assets was CHF31.95 Mil.
Total Assets was CHF89.68 Mil.
Property, Plant and Equipment(Net PPE) was CHF45.83 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF6.51 Mil.
Selling, General, & Admin. Expense(SGA) was CHF6.41 Mil.
Total Current Liabilities was CHF59.55 Mil.
Long-Term Debt & Capital Lease Obligation was CHF56.10 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)
	=	(10.029 / 17.967)	/	(7.322 / 18.926)
	=	0.55819	/	0.386875
	=	1.4428

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)
	=	(0.494 / 18.926)	/	(-1.582 / 17.967)
	=	0.026102	/	-0.08805
	=	-0.2964

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 - (31.213 + 41.625) / 90.824)	/	(1 - (31.946 + 45.834) / 89.68)
	=	0.198031	/	0.132694
	=	1.4924

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
	=	17.967	/	18.926
	=	0.9493

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))
	=	(6.508 / (6.508 + 45.834))	/	(6.935 / (6.935 + 41.625))
	=	0.124336	/	0.142813
	=	0.8706

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)
	=	(9.95 / 17.967)	/	(6.406 / 18.926)
	=	0.553793	/	0.338476
	=	1.6361

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)
	=	((59.375 + 72.604) / 90.824)	/	((56.101 + 59.547) / 89.68)
	=	1.453129	/	1.289563
	=	1.1268

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
	=	(-85.553 - 0	-	-46.508)	/	90.824
	=	-0.429897

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.

Leclanche has a M-score of -4.78 suggests that the company is unlikely to be a manipulator.

Leclanche Beneish M-Score Related Terms

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Leclanche (XSWX:LECN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Leclanche SA (XSWX:LECN) » Definitions » Beneish M-Score

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LECNz:UK

Address

Avenue des Sports 42, Yverdon-les-Bains, CHE, CH-1401

Website

https://www.leclanche.com

Leclanche SA is a Switzerland-based company. It operates through three segments. Stationery Business, which is the key revenue driver, sells customized systems to both electricity generation markets and transmission and distribution markets. E-Transport Business sells customized systems in mass marine, road, and rail transportation. Specialty Battery Business develops and delivers both turn-key customized solutions and off-the-shelf solutions incorporating battery storage and/or charging solutions utilizing both in-house and third-party technologies for civil, military, medical, and industrial machinery markets. Geographically, it exports its products to the Netherlands, Canada, the USA, Switzerland, Norway, Netherlands, Canada, France, Germany, and others.

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