Various Eateries (LSE:VARE) Beneish M-Score : -2.67 (As of May. 16, 2024)

View and export this data going back to 2020. Start your Free Trial

What is Various Eateries 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:VARE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.35 Med: -2.67 Max: 24.77
Current: -2.67

During the past 7 years, the highest Beneish M-Score of Various Eateries was 24.77. The lowest was -5.35. And the median was -2.67.

Various Eateries Beneish M-Score Historical Data

The historical data trend for Various Eateries'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.

Various Eateries Beneish M-Score Chart

Various Eateries Annual Data

Trend

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

Get a 7-Day Free Trial

-5.35

24.77

-4.55

-2.55

-2.67

Various Eateries Semi-Annual Data
	Sep17	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial							-4.55	-	-2.55	-	-2.67

Competitive Comparison of Various Eateries's Beneish M-Score

For the Restaurants subindustry, Various Eateries'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.

Various Eateries's Beneish M-Score Distribution in the Restaurants Industry

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

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

Various Eateries 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 Various Eateries 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 * 0.6963

0.528 * 2.1661

0.404 * 1.0697

0.892 * 1.1187

0.115 * 0.8994

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.131442

0.327 * 1.1072

-2.67

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was £1.29 Mil.
Revenue was £45.50 Mil.
Gross Profit was £1.90 Mil.
Total Current Assets was £5.22 Mil.
Total Assets was £66.64 Mil.
Property, Plant and Equipment(Net PPE) was £50.27 Mil.
Depreciation, Depletion and Amortization(DDA) was £5.57 Mil.
Selling, General, & Admin. Expense(SGA) was £0.00 Mil.
Total Current Liabilities was £26.89 Mil.
Long-Term Debt & Capital Lease Obligation was £28.05 Mil.
Net Income was £-6.68 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £2.08 Mil.

Total Receivables was £1.66 Mil.
Revenue was £40.67 Mil.
Gross Profit was £3.68 Mil.
Total Current Assets was £12.76 Mil.
Total Assets was £71.68 Mil.
Property, Plant and Equipment(Net PPE) was £47.70 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.70 Mil.
Selling, General, & Admin. Expense(SGA) was £0.00 Mil.
Total Current Liabilities was £24.13 Mil.
Long-Term Debt & Capital Lease Obligation was £29.24 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)
	=	(1.29 / 45.495)	/	(1.656 / 40.667)
	=	0.028355	/	0.040721
	=	0.6963

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)
	=	(3.675 / 40.667)	/	(1.898 / 45.495)
	=	0.090368	/	0.041719
	=	2.1661

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 - (5.216 + 50.27) / 66.638)	/	(1 - (12.761 + 47.701) / 71.676)
	=	0.167352	/	0.156454
	=	1.0697

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
	=	45.495	/	40.667
	=	1.1187

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))
	=	(4.702 / (4.702 + 47.701))	/	(5.571 / (5.571 + 50.27))
	=	0.089728	/	0.099765
	=	0.8994

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)
	=	(0 / 45.495)	/	(0 / 40.667)
	=	0	/	0
	=	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)
	=	((28.049 + 26.891) / 66.638)	/	((29.244 + 24.127) / 71.676)
	=	0.824455	/	0.744615
	=	1.1072

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
	=	(-6.677 - 0	-	2.082)	/	66.638
	=	-0.131442

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.

Various Eateries has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

Various Eateries Beneish M-Score Related Terms

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

Various Eateries (LSE:VARE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Various Eateries PLC (LSE:VARE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

20 Saint Thomas Street, Runway East, London, GBR, SE1 9RS

Website

http://www.variouseateries.co.uk

Various Eateries PLC owns, develops, and operates restaurant sites in the United Kingdom. The company operates two core brands; Coppa Club, a multi-use, all-day concept that combines a restaurant, terrace, cafe, lounge, bar, and workspaces; and Tavolino, a restaurant aiming to address a gap in the market for high-quality Italian food at mid-market prices. The company has two operating segments; the Restaurant Segment, and the Hotel Segment, out of which a majority of the company's revenue is derived from the Restaurant Segment.

Various Eateries (LSE:VARE) Headlines

No Headlines