Private Equity Holding AG (XSWX:PEHN) Beneish M-Score : 0.00 (As of Apr. 24, 2024)

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Private Equity Holding AG Beneish M-Score Definition

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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.

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

During the past 13 years, the highest Beneish M-Score of Private Equity Holding AG was 3.52. The lowest was -21.90. And the median was -2.58.

Private Equity 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 Private Equity 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* 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.

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was CHF0.00 Mil.
Revenue was CHF-0.18 Mil.
Gross Profit was CHF-0.18 Mil.
Total Current Assets was CHF0.06 Mil.
Total Assets was CHF421.35 Mil.
Property, Plant and Equipment(Net PPE) was CHF0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF0.00 Mil.
Selling, General, & Admin. Expense(SGA) was CHF0.74 Mil.
Total Current Liabilities was CHF0.03 Mil.
Long-Term Debt & Capital Lease Obligation was CHF44.69 Mil.
Net Income was CHF-0.92 Mil.
Gross Profit was CHF0.00 Mil.
Cash Flow from Operations was CHF-0.78 Mil.

Total Receivables was CHF0.00 Mil.
Revenue was CHF87.89 Mil.
Gross Profit was CHF87.89 Mil.
Total Current Assets was CHF0.32 Mil.
Total Assets was CHF434.25 Mil.
Property, Plant and Equipment(Net PPE) was CHF0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF0.00 Mil.
Selling, General, & Admin. Expense(SGA) was CHF0.80 Mil.
Total Current Liabilities was CHF0.06 Mil.
Long-Term Debt & Capital Lease Obligation was CHF37.74 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)
	=	(0 / -0.179)	/	(0 / 87.885)
	=		/	0
	=

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)
	=	(87.885 / 87.885)	/	(-0.179 / -0.179)
	=	1	/
	=

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 - (0.062 + 0) / 421.352)	/	(1 - (0.317 + 0) / 434.252)
	=	0.999853	/	0.99927
	=

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
	=	-0.179	/	87.885
	=

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 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=

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)
	=	(0.743 / -0.179)	/	(0.796 / 87.885)
	=		/	0.009057
	=

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)
	=	((44.685 + 0.027) / 421.352)	/	((37.741 + 0.058) / 434.252)
	=	0.106116	/	0.087044
	=

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
	=	(-0.923 - 0	-	-0.779)	/	421.352
	=	-0.000342

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.

Private Equity Holding AG Beneish M-Score Related Terms

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Private Equity Holding AG (XSWX:PEHN) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Gotthardstrasse 28, Zug, CHE, CH-6302

Website

https://www.peh.ch

Private Equity Holding AG offers institutional and private investors the opportunity to invest in a broadly diversified private equity portfolio within a simple legal and tax-optimized structure. The company's investment is managed by Alpha Associates. Their business model consists of Investing in Private Equity Fund, Acquisition of Fund interest on the Secondary markets, and direct co-investments. It has a presence in the United States of America, Europe, and the Rest of the World.