CMO Group (LSE:CMO) Beneish M-Score : -2.72 (As of May. 15, 2024)

View and export this data going back to 2021. Start your Free Trial

What is CMO 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 -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:CMO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94 Med: -2.72 Max: -1.88
Current: -2.72

During the past 5 years, the highest Beneish M-Score of CMO Group was -1.88. The lowest was -2.94. And the median was -2.72.

CMO Group Beneish M-Score Historical Data

The historical data trend for CMO 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.

* Premium members only.

CMO Group Beneish M-Score Chart

CMO Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-2.94

-1.88

-2.72

CMO Group Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial				-	-1.88	-	-2.72	-

Competitive Comparison of CMO Group's Beneish M-Score

For the Home Improvement Retail subindustry, CMO 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.

CMO Group's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, CMO Group's Beneish M-Score distribution charts can be found below:

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

CMO 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 CMO 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 * 0.8534

0.528 * 1.0093

0.404 * 1.1198

0.892 * 1.0882

0.115 * 0.7126

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8681

4.679 * -0.052287

0.327 * 0.959

-2.72

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was £2.73 Mil.
Revenue was £83.07 Mil.
Gross Profit was £16.54 Mil.
Total Current Assets was £14.40 Mil.
Total Assets was £39.70 Mil.
Property, Plant and Equipment(Net PPE) was £1.57 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.81 Mil.
Selling, General, & Admin. Expense(SGA) was £15.91 Mil.
Total Current Liabilities was £16.79 Mil.
Long-Term Debt & Capital Lease Obligation was £4.79 Mil.
Net Income was £0.37 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £2.44 Mil.

Total Receivables was £2.94 Mil.
Revenue was £76.34 Mil.
Gross Profit was £15.34 Mil.
Total Current Assets was £17.49 Mil.
Total Assets was £41.64 Mil.
Property, Plant and Equipment(Net PPE) was £1.92 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.18 Mil.
Selling, General, & Admin. Expense(SGA) was £16.85 Mil.
Total Current Liabilities was £20.37 Mil.
Long-Term Debt & Capital Lease Obligation was £3.23 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)
	=	(2.732 / 83.073)	/	(2.942 / 76.34)
	=	0.032887	/	0.038538
	=	0.8534

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)
	=	(15.343 / 76.34)	/	(16.542 / 83.073)
	=	0.200982	/	0.199126
	=	1.0093

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 - (14.396 + 1.571) / 39.704)	/	(1 - (17.492 + 1.918) / 41.644)
	=	0.597849	/	0.533906
	=	1.1198

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
	=	83.073	/	76.34
	=	1.0882

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))
	=	(1.182 / (1.182 + 1.918))	/	(1.808 / (1.808 + 1.571))
	=	0.38129	/	0.53507
	=	0.7126

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)
	=	(15.914 / 83.073)	/	(16.846 / 76.34)
	=	0.191566	/	0.220671
	=	0.8681

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)
	=	((4.788 + 16.79) / 39.704)	/	((3.229 + 20.37) / 41.644)
	=	0.543472	/	0.566684
	=	0.959

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
	=	(0.367 - 0	-	2.443)	/	39.704
	=	-0.052287

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.

CMO Group has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

CMO Group Beneish M-Score Related Terms

Thank you for viewing the detailed overview of CMO Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.