8I Holdings (ASX:8IH) Beneish M-Score : -4.94 (As of May. 26, 2024)

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What is 8I Holdings 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 -4.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for 8I Holdings's Beneish M-Score or its related term are showing as below:

ASX:8IH' s Beneish M-Score Range Over the Past 10 Years
Min: -4.94 Med: -2.9 Max: -1.59
Current: -4.94

During the past 8 years, the highest Beneish M-Score of 8I Holdings was -1.59. The lowest was -4.94. And the median was -2.90.

8I Holdings Beneish M-Score Historical Data

The historical data trend for 8I Holdings'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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8I Holdings Beneish M-Score Chart

8I Holdings Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.30

-3.90

-3.30

-1.59

-4.94

8I Holdings Semi-Annual Data
	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial												-	-1.59	-	-4.94	-

Competitive Comparison of 8I Holdings's Beneish M-Score

For the Education & Training Services subindustry, 8I Holdings'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.

8I Holdings's Beneish M-Score Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, 8I Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where 8I Holdings's Beneish M-Score falls into.

8I Holdings 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 8I Holdings 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 * 0.9596

0.528 * 2.127

0.404 * 0.3634

0.892 * 0.582

0.115 * 0.8333

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7469

4.679 * -0.478838

0.327 * 1.0067

-4.94

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was A$1.79 Mil.
Revenue was A$18.08 Mil.
Gross Profit was A$8.50 Mil.
Total Current Assets was A$30.86 Mil.
Total Assets was A$38.23 Mil.
Property, Plant and Equipment(Net PPE) was A$6.60 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3.07 Mil.
Selling, General, & Admin. Expense(SGA) was A$22.03 Mil.
Total Current Liabilities was A$13.11 Mil.
Long-Term Debt & Capital Lease Obligation was A$3.96 Mil.
Net Income was A$-16.68 Mil.
Gross Profit was A$-2.45 Mil.
Cash Flow from Operations was A$4.07 Mil.

Total Receivables was A$3.20 Mil.
Revenue was A$31.07 Mil.
Gross Profit was A$31.07 Mil.
Total Current Assets was A$54.84 Mil.
Total Assets was A$65.35 Mil.
Property, Plant and Equipment(Net PPE) was A$6.89 Mil.
Depreciation, Depletion and Amortization(DDA) was A$2.48 Mil.
Selling, General, & Admin. Expense(SGA) was A$21.66 Mil.
Total Current Liabilities was A$24.53 Mil.
Long-Term Debt & Capital Lease Obligation was A$4.47 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)
	=	(1.785 / 18.084)	/	(3.196 / 31.071)
	=	0.098706	/	0.102861
	=	0.9596

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)
	=	(31.071 / 31.071)	/	(8.502 / 18.084)
	=	1	/	0.470139
	=	2.127

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 - (30.863 + 6.595) / 38.228)	/	(1 - (54.835 + 6.894) / 65.351)
	=	0.020142	/	0.055424
	=	0.3634

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
	=	18.084	/	31.071
	=	0.582

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))
	=	(2.48 / (2.48 + 6.894))	/	(3.068 / (3.068 + 6.595))
	=	0.264562	/	0.3175
	=	0.8333

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)
	=	(22.026 / 18.084)	/	(21.664 / 31.071)
	=	1.217983	/	0.697242
	=	1.7469

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)
	=	((3.963 + 13.114) / 38.228)	/	((4.474 + 24.526) / 65.351)
	=	0.446714	/	0.443758
	=	1.0067

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
	=	(-16.684 - -2.45	-	4.071)	/	38.228
	=	-0.478838

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.

8I Holdings has a M-score of -4.94 suggests that the company is unlikely to be a manipulator.

8I Holdings Beneish M-Score Related Terms

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8I Holdings (ASX:8IH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » 8I Holdings Ltd (ASX:8IH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1557 Keppel Road, No. 01-01, Singapore, SGP, 089066

Website

https://www.8iholdings.com

8I Holdings Ltd is an investment holding company. The company's operating segments include Financial Education; Financial Investment and Others. The Financial Education segment is involved in providing financial education in the discipline of value investing and supporting a community of value investors from 29 cities globally under the VI brand. It generates maximum revenue from the Financial Education segment. Geographically, it derives a majority of its revenue from Singapore and also has a presence in Malaysia and Other countries.

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