Forward Fashion (International) Holdings Co (HKSE:02528) Beneish M-Score : -3.81 (As of May. 20, 2024)

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What is Forward Fashion (International) Holdings Co 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 -3.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Forward Fashion (International) Holdings Co's Beneish M-Score or its related term are showing as below:

HKSE:02528' s Beneish M-Score Range Over the Past 10 Years
Min: -4.43 Med: -3.75 Max: -3
Current: -3.81

During the past 8 years, the highest Beneish M-Score of Forward Fashion (International) Holdings Co was -3.00. The lowest was -4.43. And the median was -3.75.

Forward Fashion (International) Holdings Co Beneish M-Score Historical Data

The historical data trend for Forward Fashion (International) Holdings Co'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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Forward Fashion (International) Holdings Co Beneish M-Score Chart

Forward Fashion (International) Holdings Co Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.69

-4.43

-3.00

-3.94

-3.81

Forward Fashion (International) Holdings Co Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial								-3.00	-	-3.94	-	-3.81

Competitive Comparison of Forward Fashion (International) Holdings Co's Beneish M-Score

For the Apparel Retail subindustry, Forward Fashion (International) Holdings Co'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.

Forward Fashion (International) Holdings Co's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Forward Fashion (International) Holdings Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Forward Fashion (International) Holdings Co's Beneish M-Score falls into.

Forward Fashion (International) Holdings Co 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 Forward Fashion (International) Holdings Co 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 * 1.0167

0.528 * 1.0195

0.404 * 0.5327

0.892 * 1.0499

0.115 * 1.1422

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0012

4.679 * -0.259709

0.327 * 1.0304

-3.81

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$60 Mil.
Revenue was HK$1,008 Mil.
Gross Profit was HK$468 Mil.
Total Current Assets was HK$542 Mil.
Total Assets was HK$912 Mil.
Property, Plant and Equipment(Net PPE) was HK$316 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$165 Mil.
Selling, General, & Admin. Expense(SGA) was HK$490 Mil.
Total Current Liabilities was HK$536 Mil.
Long-Term Debt & Capital Lease Obligation was HK$119 Mil.
Net Income was HK$-17 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$220 Mil.

Total Receivables was HK$56 Mil.
Revenue was HK$960 Mil.
Gross Profit was HK$454 Mil.
Total Current Assets was HK$519 Mil.
Total Assets was HK$910 Mil.
Property, Plant and Equipment(Net PPE) was HK$289 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$186 Mil.
Selling, General, & Admin. Expense(SGA) was HK$466 Mil.
Total Current Liabilities was HK$518 Mil.
Long-Term Debt & Capital Lease Obligation was HK$116 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)
	=	(59.9 / 1007.801)	/	(56.118 / 959.9)
	=	0.059436	/	0.058462
	=	1.0167

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)
	=	(454.242 / 959.9)	/	(467.805 / 1007.801)
	=	0.473218	/	0.464184
	=	1.0195

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 - (541.524 + 315.855) / 912.168)	/	(1 - (518.567 + 289.238) / 910.462)
	=	0.060065	/	0.112753
	=	0.5327

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
	=	1007.801	/	959.9
	=	1.0499

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))
	=	(185.913 / (185.913 + 289.238))	/	(164.585 / (164.585 + 315.855))
	=	0.391271	/	0.342571
	=	1.1422

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)
	=	(489.826 / 1007.801)	/	(465.972 / 959.9)
	=	0.486034	/	0.485438
	=	1.0012

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)
	=	((119.256 + 535.574) / 912.168)	/	((115.979 + 518.314) / 910.462)
	=	0.717883	/	0.696672
	=	1.0304

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
	=	(-16.852 - 0	-	220.046)	/	912.168
	=	-0.259709

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.

Forward Fashion (International) Holdings Co has a M-score of -3.81 suggests that the company is unlikely to be a manipulator.

Forward Fashion (International) Holdings Co Beneish M-Score Related Terms

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Forward Fashion (International) Holdings Co (HKSE:02528) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Forward Fashion (International) Holdings Co Ltd (HKSE:02528) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

The Gateway, Harbour City, Suite 1204, 12th Floor, Tower 6, Tsim Sha Tsui, Kowloon, Hong Kong, HKG

Website

https://www.forward-fashion.com

Forward Fashion (International) Holdings Co Ltd is engaged in the retail of fashion apparel of international brands ranging from designer label brands, and popular brands to up-and-coming brands in Greater China. Its brands include UM, UM IXOX, and IXOX. It has opened mono-brand stores in Greater China for the brands BLACK BARRETT, CK CALVIN KLEIN, Calvin Klein Jeans, Calvin Klein Performance, Calvin Klein Underwear, EA7, Ed Hardy, Hogan, Moschino, Neil Barrett, Philipp Plein, Tommy Hilfiger and Under Armour. It has a business presence in Mainland China, Macau, Hong Kong, and Other regions.

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