Careium AB (OSTO:CARE) Beneish M-Score : -2.64 (As of Jun. 05, 2024)

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

What is Careium 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 Careium AB's Beneish M-Score or its related term are showing as below:

OSTO:CARE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36 Med: -2.56 Max: -2.06
Current: -2.64

During the past 5 years, the highest Beneish M-Score of Careium AB was -2.06. The lowest was -3.36. And the median was -2.56.

Careium AB Beneish M-Score Historical Data

The historical data trend for Careium 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.

Careium AB Beneish M-Score Chart

Careium AB Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.56

-2.91

Careium AB Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial											-2.35	-2.36	-2.06	-2.91	-2.64

Competitive Comparison of Careium AB's Beneish M-Score

For the Security & Protection Services subindustry, Careium 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.

Careium AB's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Careium AB's Beneish M-Score distribution charts can be found below:

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

Careium 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 Careium AB 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 * 1.0552

0.528 * 0.8932

0.404 * 1.0188

0.892 * 1.136

0.115 * 0.9631

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8199

4.679 * -0.0561

0.327 * 1.1478

-2.64

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was kr190.6 Mil.
Revenue was 210.7 + 199.4 + 217.3 + 213.8 = kr841.2 Mil.
Gross Profit was 90.3 + 80.2 + 94.6 + 90.1 = kr355.2 Mil.
Total Current Assets was kr283.7 Mil.
Total Assets was kr1,041.0 Mil.
Property, Plant and Equipment(Net PPE) was kr89.5 Mil.
Depreciation, Depletion and Amortization(DDA) was kr76.4 Mil.
Selling, General, & Admin. Expense(SGA) was kr264.8 Mil.
Total Current Liabilities was kr184.9 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.0 Mil.
Net Income was 13.5 + 4.5 + 12.1 + 14.3 = kr44.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.0 Mil.
Cash Flow from Operations was 28.9 + 53.8 + 1.6 + 18.5 = kr102.8 Mil.

Total Receivables was kr159.0 Mil.
Revenue was 194 + 196.2 + 175.9 + 174.4 = kr740.5 Mil.
Gross Profit was 75.6 + 77.3 + 61.2 + 65.2 = kr279.3 Mil.
Total Current Assets was kr276.9 Mil.
Total Assets was kr997.8 Mil.
Property, Plant and Equipment(Net PPE) was kr92.6 Mil.
Depreciation, Depletion and Amortization(DDA) was kr73.8 Mil.
Selling, General, & Admin. Expense(SGA) was kr284.3 Mil.
Total Current Liabilities was kr154.4 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.0 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)
	=	(190.6 / 841.2)	/	(159 / 740.5)
	=	0.226581	/	0.21472
	=	1.0552

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)
	=	(279.3 / 740.5)	/	(355.2 / 841.2)
	=	0.377178	/	0.422254
	=	0.8932

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 - (283.7 + 89.5) / 1041)	/	(1 - (276.9 + 92.6) / 997.8)
	=	0.641499	/	0.629685
	=	1.0188

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
	=	841.2	/	740.5
	=	1.136

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))
	=	(73.8 / (73.8 + 92.6))	/	(76.4 / (76.4 + 89.5))
	=	0.44351	/	0.460518
	=	0.9631

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)
	=	(264.8 / 841.2)	/	(284.3 / 740.5)
	=	0.314788	/	0.38393
	=	0.8199

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)
	=	((0 + 184.9) / 1041)	/	((0 + 154.4) / 997.8)
	=	0.177618	/	0.15474
	=	1.1478

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
	=	(44.4 - 0	-	102.8)	/	1041
	=	-0.0561

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.

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

Careium AB Beneish M-Score Related Terms

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

Careium AB (OSTO:CARE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Careium AB (OSTO:CARE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

I81:Germany

Address

Jorgen Kocksgatan 1B, Malmo, SWE, 211 20

Website

https://www.careium.com

Careium AB is a player in technology-enabled care in Sweden which provides solutions to improve the safety, quality of life, and independence of seniors both inside and outside the home. It offers a complete digital alarm chain. Its product catalog includes security alarms, fall sensors, smoke detectors motion detectors, accessories such as cameras, electronic locks, robotic medication assistive devices, and secure communication with alarm response. Geographically it has a presence in Nordics, the United Kingdom and Ireland, Central Europe, and Other markets, Its majority of the revenue comes from Nordics.