Donegal Investment Group (DUB:DQ7A) Beneish M-Score : -1.84 (As of Apr. 29, 2024)

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What is Donegal Investment Group 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 -1.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DUB:DQ7A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23 Med: -2.57 Max: 1.58
Current: -1.84

During the past 13 years, the highest Beneish M-Score of Donegal Investment Group was 1.58. The lowest was -3.23. And the median was -2.57.

Donegal Investment Group Beneish M-Score Historical Data

The historical data trend for Donegal Investment Group'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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Donegal Investment Group Beneish M-Score Chart

Donegal Investment Group Annual Data

Trend

Dec13

Dec14

Dec15

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Beneish M-Score

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-3.06

-3.03

-3.08

1.58

-1.84

Donegal Investment Group Semi-Annual Data
	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Beneish M-Score	Get a 7-Day Free Trial															-3.08	-	1.58	-	-1.84

Competitive Comparison of Donegal Investment Group's Beneish M-Score

For the Farm Products subindustry, Donegal Investment Group'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.

Donegal Investment Group's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Donegal Investment Group's Beneish M-Score distribution charts can be found below:

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

Donegal Investment Group 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 Donegal Investment Group 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 * 0.7003

0.528 * 1.0115

0.404 * 1.209

0.892 * 1.1784

0.115 * 0.983

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7957

4.679 * 0.101099

0.327 * 0.5016

-1.84

This Year (Aug23) TTM:

Last Year (Aug22) TTM:

Total Receivables was €4.35 Mil.
Revenue was €29.72 Mil.
Gross Profit was €9.79 Mil.
Total Current Assets was €14.54 Mil.
Total Assets was €19.65 Mil.
Property, Plant and Equipment(Net PPE) was €3.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.46 Mil.
Selling, General, & Admin. Expense(SGA) was €8.29 Mil.
Total Current Liabilities was €3.24 Mil.
Long-Term Debt & Capital Lease Obligation was €0.55 Mil.
Net Income was €2.02 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €0.03 Mil.

Total Receivables was €5.27 Mil.
Revenue was €25.22 Mil.
Gross Profit was €8.40 Mil.
Total Current Assets was €16.43 Mil.
Total Assets was €21.89 Mil.
Property, Plant and Equipment(Net PPE) was €3.51 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.52 Mil.
Selling, General, & Admin. Expense(SGA) was €8.84 Mil.
Total Current Liabilities was €7.85 Mil.
Long-Term Debt & Capital Lease Obligation was €0.56 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)
	=	(4.345 / 29.719)	/	(5.265 / 25.22)
	=	0.146203	/	0.208763
	=	0.7003

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)
	=	(8.404 / 25.22)	/	(9.791 / 29.719)
	=	0.333228	/	0.329453
	=	1.0115

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 - (14.536 + 2.998) / 19.654)	/	(1 - (16.429 + 3.508) / 21.89)
	=	0.107866	/	0.089219
	=	1.209

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
	=	29.719	/	25.22
	=	1.1784

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))
	=	(0.522 / (0.522 + 3.508))	/	(0.455 / (0.455 + 2.998))
	=	0.129529	/	0.131769
	=	0.983

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)
	=	(8.293 / 29.719)	/	(8.844 / 25.22)
	=	0.279047	/	0.350674
	=	0.7957

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)
	=	((0.548 + 3.241) / 19.654)	/	((0.561 + 7.853) / 21.89)
	=	0.192785	/	0.384376
	=	0.5016

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
	=	(2.016 - 0	-	0.029)	/	19.654
	=	0.101099

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.

Donegal Investment Group has a M-score of -1.84 suggests that the company is unlikely to be a manipulator.

Donegal Investment Group Beneish M-Score Related Terms

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Donegal Investment Group (DUB:DQ7A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Donegal Investment Group PLC (DUB:DQ7A) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ballyraine, Co. Donegal, Letterkenny, IRL

Website

http://www.donegaligroup.com

Donegal Investment Group PLC is engaged in the development, purchase, and sale of seed potatoes and the rental and sale of property assets. Its only segment being Produce. The Group operates in three geographical segments: Ireland; Europe and the Rest of the World; generating a vast majority of its revenue within Ireland.

Donegal Investment Group (DUB:DQ7A) Headlines

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