Nightcap (LSE:NGHT) Beneish M-Score : -2.66 (As of May. 19, 2024)

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What is Nightcap 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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:NGHT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66 Med: -0.67 Max: 1.33
Current: -2.66

During the past 4 years, the highest Beneish M-Score of Nightcap was 1.33. The lowest was -2.66. And the median was -0.67.

Nightcap Beneish M-Score Historical Data

The historical data trend for Nightcap'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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Nightcap Beneish M-Score Chart

Nightcap Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

1.33

-2.66

Nightcap Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-	1.33	-	-2.66	-

Competitive Comparison of Nightcap's Beneish M-Score

For the Restaurants subindustry, Nightcap'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.

Nightcap's Beneish M-Score Distribution in the Restaurants Industry

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

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

Nightcap 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 Nightcap 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 * 1.2614

0.528 * 0.9894

0.404 * 1.064

0.892 * 1.2913

0.115 * 0.9655

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1296

4.679 * -0.135406

0.327 * 1.1159

-2.66

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was £3.27 Mil.
Revenue was £46.41 Mil.
Gross Profit was £37.39 Mil.
Total Current Assets was £9.44 Mil.
Total Assets was £79.95 Mil.
Property, Plant and Equipment(Net PPE) was £48.63 Mil.
Depreciation, Depletion and Amortization(DDA) was £6.37 Mil.
Selling, General, & Admin. Expense(SGA) was £39.85 Mil.
Total Current Liabilities was £17.26 Mil.
Long-Term Debt & Capital Lease Obligation was £45.28 Mil.
Net Income was £-4.17 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £6.66 Mil.

Total Receivables was £2.01 Mil.
Revenue was £35.94 Mil.
Gross Profit was £28.65 Mil.
Total Current Assets was £7.91 Mil.
Total Assets was £58.54 Mil.
Property, Plant and Equipment(Net PPE) was £35.57 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.48 Mil.
Selling, General, & Admin. Expense(SGA) was £27.32 Mil.
Total Current Liabilities was £11.06 Mil.
Long-Term Debt & Capital Lease Obligation was £29.98 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)
	=	(3.266 / 46.414)	/	(2.005 / 35.943)
	=	0.070367	/	0.055783
	=	1.2614

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)
	=	(28.646 / 35.943)	/	(37.386 / 46.414)
	=	0.796984	/	0.80549
	=	0.9894

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 - (9.438 + 48.628) / 79.945)	/	(1 - (7.911 + 35.57) / 58.537)
	=	0.273676	/	0.257205
	=	1.064

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
	=	46.414	/	35.943
	=	1.2913

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))
	=	(4.48 / (4.48 + 35.57))	/	(6.372 / (6.372 + 48.628))
	=	0.11186	/	0.115855
	=	0.9655

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)
	=	(39.851 / 46.414)	/	(27.32 / 35.943)
	=	0.858599	/	0.760092
	=	1.1296

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)
	=	((45.281 + 17.261) / 79.945)	/	((29.977 + 11.062) / 58.537)
	=	0.782313	/	0.701078
	=	1.1159

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
	=	(-4.169 - 0	-	6.656)	/	79.945
	=	-0.135406

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.

Nightcap has a M-score of -2.66 suggests that the company is unlikely to be a manipulator.

Nightcap Beneish M-Score Related Terms

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Nightcap (LSE:NGHT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Nightcap PLC (LSE:NGHT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

C/O Locke Lord (UK) LLP, 201 Bishopsgate, London, GBR, EC2M 3AB

Website

https://www.nightcapplc.com

Nightcap PLC operates cocktail-bars. It focuses on the hospitality industry and in consumer preferences. It acquires, recapitalizes and develops drinks-led concepts with potential across the UK.