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AddLife AB (OSTO:ALIF B) Beneish M-Score : -2.64 (As of May. 24, 2024)


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What is AddLife AB 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OSTO:ALIF B' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68   Med: -2.46   Max: -1.94
Current: -2.64

During the past 11 years, the highest Beneish M-Score of AddLife AB was -1.94. The lowest was -2.68. And the median was -2.46.


AddLife AB Beneish M-Score Historical Data

The historical data trend for AddLife AB'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.

AddLife AB Beneish M-Score Chart

AddLife AB Annual Data
Trend Mar14 Mar15 Mar16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.68 -2.56 -2.11 -2.56 -2.63

AddLife AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.51 -2.33 -2.52 -2.63 -2.64

Competitive Comparison of AddLife AB's Beneish M-Score

For the Medical Instruments & Supplies subindustry, AddLife AB'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.


AddLife AB's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, AddLife AB's Beneish M-Score distribution charts can be found below:

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



AddLife AB 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 AddLife AB for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0212+0.528 * 1.0065+0.404 * 0.9639+0.892 * 1.0933+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0219+4.679 * -0.051727-0.327 * 1.0087
=-2.64

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was kr1,870 Mil.
Revenue was 2570 + 2544 + 2319 + 2365 = kr9,798 Mil.
Gross Profit was 968 + 919 + 859 + 895 = kr3,641 Mil.
Total Current Assets was kr3,824 Mil.
Total Assets was kr13,262 Mil.
Property, Plant and Equipment(Net PPE) was kr1,147 Mil.
Depreciation, Depletion and Amortization(DDA) was kr0 Mil.
Selling, General, & Admin. Expense(SGA) was kr3,089 Mil.
Total Current Liabilities was kr4,500 Mil.
Long-Term Debt & Capital Lease Obligation was kr2,993 Mil.
Net Income was 62 + -41 + 25 + 33 = kr79 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0 Mil.
Cash Flow from Operations was 97 + 448 + 138 + 82 = kr765 Mil.
Total Receivables was kr1,675 Mil.
Revenue was 2457 + 2326 + 2100 + 2079 = kr8,962 Mil.
Gross Profit was 926 + 864 + 751 + 811 = kr3,352 Mil.
Total Current Assets was kr3,745 Mil.
Total Assets was kr13,243 Mil.
Property, Plant and Equipment(Net PPE) was kr909 Mil.
Depreciation, Depletion and Amortization(DDA) was kr0 Mil.
Selling, General, & Admin. Expense(SGA) was kr2,765 Mil.
Total Current Liabilities was kr4,577 Mil.
Long-Term Debt & Capital Lease Obligation was kr2,841 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)
=(1870 / 9798) / (1675 / 8962)
=0.190855 / 0.1869
=1.0212

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)
=(3352 / 8962) / (3641 / 9798)
=0.374024 / 0.371606
=1.0065

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 - (3824 + 1147) / 13262) / (1 - (3745 + 909) / 13243)
=0.62517 / 0.648569
=0.9639

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
=9798 / 8962
=1.0933

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))
=(0 / (0 + 909)) / (0 / (0 + 1147))
=0 / 0
=1

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)
=(3089 / 9798) / (2765 / 8962)
=0.315268 / 0.308525
=1.0219

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)
=((2993 + 4500) / 13262) / ((2841 + 4577) / 13243)
=0.564998 / 0.560145
=1.0087

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
=(79 - 0 - 765) / 13262
=-0.051727

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.

AddLife AB has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.


AddLife AB Beneish M-Score Related Terms

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AddLife AB (OSTO:ALIF B) Business Description

Traded in Other Exchanges
Address
Brunkebergstorg 5, Box 3145, Stockholm, SWE, 103 62
AddLife AB is engaged in the business of providing products, services, and advisory services. The company operates in Labtech and Medtech segments. The Labtech segment, which accounts for the majority of the company revenue, provides analytical instruments, equipment, microscopes, consumables, and reagents, as well as software support and technical service. The Medtech segment includes products related to surgery, thoracic medicine, neurology, wound care, anesthesia, intensive care, ear, nose and throat, ostomies, and home healthcare. AddLife mainly caters to hospitals & laboratories within healthcare, research, colleges, and universities, as well as the food and pharmaceutical industries. Its geographical segments are Sweden, Denmark, Finland, Norway, and Other countries.

AddLife AB (OSTO:ALIF B) Headlines

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