Ramsdens Holdings (LSE:RFX) Beneish M-Score : -2.05 (As of May. 05, 2024)

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What is Ramsdens Holdings 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 -2.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:RFX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84 Med: -2.41 Max: -1.5
Current: -2.05

During the past 9 years, the highest Beneish M-Score of Ramsdens Holdings was -1.50. The lowest was -2.84. And the median was -2.41.

Ramsdens Holdings Beneish M-Score Historical Data

The historical data trend for Ramsdens Holdings'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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Ramsdens Holdings Beneish M-Score Chart

Ramsdens Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Sep21

Sep22

Sep23

Beneish M-Score

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-2.53

-1.50

-2.84

-1.91

-2.05

Ramsdens Holdings Semi-Annual Data
	Mar14	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial											-2.84	-	-1.91	-	-2.05

Competitive Comparison of Ramsdens Holdings's Beneish M-Score

For the Conglomerates subindustry, Ramsdens Holdings'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.

Ramsdens Holdings's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Ramsdens Holdings's Beneish M-Score distribution charts can be found below:

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

Ramsdens Holdings 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 Ramsdens Holdings 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 * 0.9141

0.528 * 1.0589

0.404 * 0.7946

0.892 * 1.2678

0.115 * 1.0562

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.060235

0.327 * 0.8987

-2.05

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was £14.70 Mil.
Revenue was £83.81 Mil.
Gross Profit was £45.76 Mil.
Total Current Assets was £56.04 Mil.
Total Assets was £74.28 Mil.
Property, Plant and Equipment(Net PPE) was £17.56 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.73 Mil.
Selling, General, & Admin. Expense(SGA) was £10.56 Mil.
Total Current Liabilities was £17.98 Mil.
Long-Term Debt & Capital Lease Obligation was £7.66 Mil.
Net Income was £7.76 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £3.28 Mil.

Total Receivables was £12.68 Mil.
Revenue was £66.10 Mil.
Gross Profit was £38.22 Mil.
Total Current Assets was £51.31 Mil.
Total Assets was £68.32 Mil.
Property, Plant and Equipment(Net PPE) was £16.23 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.69 Mil.
Selling, General, & Admin. Expense(SGA) was £8.33 Mil.
Total Current Liabilities was £18.37 Mil.
Long-Term Debt & Capital Lease Obligation was £7.87 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)
	=	(14.698 / 83.805)	/	(12.683 / 66.101)
	=	0.175383	/	0.191873
	=	0.9141

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)
	=	(38.219 / 66.101)	/	(45.759 / 83.805)
	=	0.578191	/	0.546018
	=	1.0589

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 - (56.039 + 17.564) / 74.276)	/	(1 - (51.306 + 16.232) / 68.317)
	=	0.009061	/	0.011403
	=	0.7946

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
	=	83.805	/	66.101
	=	1.2678

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))
	=	(3.689 / (3.689 + 16.232))	/	(3.734 / (3.734 + 17.564))
	=	0.185181	/	0.175322
	=	1.0562

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)
	=	(10.559 / 83.805)	/	(8.328 / 66.101)
	=	0.125995	/	0.125989
	=	1

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)
	=	((7.661 + 17.975) / 74.276)	/	((7.871 + 18.366) / 68.317)
	=	0.345145	/	0.384048
	=	0.8987

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
	=	(7.756 - 0	-	3.282)	/	74.276
	=	0.060235

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.

Ramsdens Holdings has a M-score of -2.05 suggests that the company is unlikely to be a manipulator.

Ramsdens Holdings Beneish M-Score Related Terms

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Ramsdens Holdings (LSE:RFX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Ramsdens Holdings PLC (LSE:RFX) » Definitions » Beneish M-Score

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Traded in Other Exchanges

RSDEF:USA

Address

The Parkway Centre, Unit 16, Coulby Newham, Middlesbrough, GBR, TS8 0TJ

Website

https://www.ramsdensplc.com

Ramsdens Holdings PLC is a diversified financial services provider and retailer operating in the following core segments - Foreign currency segment which comprises the sale and purchase of foreign currency notes to holidaymakers; Pawnbroking segment, which involves providing a cash loan in return for jewellery and watches; Purchases of precious metals segment, involves buying unwanted jewellery, gold, and other precious metals from customers for cash; Retail Jewellery segment and Income from other financial services. Maximum revenue is generated by the Retail Jewellery segment. Geographically, it derives a majority of revenue from the United Kingdom.

Ramsdens Holdings (LSE:RFX) Headlines

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