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Rede d oro Luiz (BSP:RDOR3) Beneish M-Score : -1.71 (As of May. 03, 2024)


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What is Rede d oro Luiz 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 -1.71 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BSP:RDOR3' s Beneish M-Score Range Over the Past 10 Years
Min: -2.3   Med: -2.05   Max: -1.71
Current: -1.71

During the past 6 years, the highest Beneish M-Score of Rede d oro Luiz was -1.71. The lowest was -2.30. And the median was -2.05.


Rede d oro Luiz Beneish M-Score Historical Data

The historical data trend for Rede d oro Luiz'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.

* Premium members only.

Rede d oro Luiz Beneish M-Score Chart

Rede d oro Luiz Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.15 -1.94 -2.30 -1.71

Rede d oro Luiz Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.30 -2.11 -1.93 -1.81 -1.71

Competitive Comparison of Rede d oro Luiz's Beneish M-Score

For the Medical Care Facilities subindustry, Rede d oro Luiz'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.


Rede d oro Luiz's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Rede d oro Luiz's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Rede d oro Luiz's Beneish M-Score falls into.



Rede d oro Luiz 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 Rede d oro Luiz for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.5588+0.528 * 1.39+0.404 * 0.945+0.892 * 2.0232+0.115 * 1.0425
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.019+4.679 * 0.018206-0.327 * 1.0193
=-1.71

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was R$9,085 Mil.
Revenue was 11499.541 + 12015.091 + 11678.702 + 11315.224 = R$46,509 Mil.
Gross Profit was 2064.367 + 2005.461 + 1879.988 + 1621.666 = R$7,571 Mil.
Total Current Assets was R$43,123 Mil.
Total Assets was R$90,342 Mil.
Property, Plant and Equipment(Net PPE) was R$15,590 Mil.
Depreciation, Depletion and Amortization(DDA) was R$1,500 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,309 Mil.
Total Current Liabilities was R$14,238 Mil.
Long-Term Debt & Capital Lease Obligation was R$33,967 Mil.
Net Income was 590.915 + 753.845 + 408.529 + 287.433 = R$2,041 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was -829.4 + 861.036 + 246.402 + 117.874 = R$396 Mil.
Total Receivables was R$8,036 Mil.
Revenue was 5751.698 + 6063.258 + 5799.204 + 5373.283 = R$22,987 Mil.
Gross Profit was 1225.634 + 1507.217 + 1371.568 + 1097.362 = R$5,202 Mil.
Total Current Assets was R$40,624 Mil.
Total Assets was R$86,678 Mil.
Property, Plant and Equipment(Net PPE) was R$13,941 Mil.
Depreciation, Depletion and Amortization(DDA) was R$1,404 Mil.
Selling, General, & Admin. Expense(SGA) was R$635 Mil.
Total Current Liabilities was R$14,751 Mil.
Long-Term Debt & Capital Lease Obligation was R$30,621 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)
=(9085.143 / 46508.558) / (8035.727 / 22987.443)
=0.195343 / 0.34957
=0.5588

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)
=(5201.781 / 22987.443) / (7571.482 / 46508.558)
=0.226288 / 0.162798
=1.39

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 - (43123.481 + 15589.865) / 90342.356) / (1 - (40623.899 + 13940.886) / 86678.327)
=0.350102 / 0.370491
=0.945

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
=46508.558 / 22987.443
=2.0232

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))
=(1404.142 / (1404.142 + 13940.886)) / (1500.033 / (1500.033 + 15589.865))
=0.091505 / 0.087773
=1.0425

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)
=(1309.154 / 46508.558) / (635.027 / 22987.443)
=0.028149 / 0.027625
=1.019

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)
=((33967.19 + 14237.547) / 90342.356) / ((30620.81 + 14751.327) / 86678.327)
=0.533578 / 0.523454
=1.0193

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
=(2040.722 - 0 - 395.912) / 90342.356
=0.018206

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.

Rede d oro Luiz has a M-score of -1.71 signals that the company is likely to be a manipulator.


Rede d oro Luiz Beneish M-Score Related Terms

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Rede d oro Luiz (BSP:RDOR3) Business Description

Traded in Other Exchanges
N/A
Address
Street Francisco Marengo, No. 1312, Sao Paulo, SP, BRA, 03313-000
Rede d or Sao Luiz SA is a provider of integrated healthcare services. The company offers medical and hospital care services in the areas of women healthcare, oncology, dermatology, gastroenterology, neurology, psychology, urology, reproductive medicine, and others.

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