IVE Group (ASX:IGL) Beneish M-Score : -2.33 (As of May. 19, 2024)

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What is IVE Group 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:IGL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53 Med: -2.7 Max: -2.29
Current: -2.33

During the past 8 years, the highest Beneish M-Score of IVE Group was -2.29. The lowest was -3.53. And the median was -2.70.

IVE Group Beneish M-Score Historical Data

The historical data trend for IVE Group'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.

IVE Group Beneish M-Score Chart

IVE Group Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-2.71

-3.53

-3.17

-2.69

-2.33

IVE Group Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial												-	-2.69	-	-2.33	-

Competitive Comparison of IVE Group's Beneish M-Score

For the Advertising Agencies subindustry, IVE Group'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.

IVE Group's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, IVE Group's Beneish M-Score distribution charts can be found below:

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

IVE Group 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 IVE Group 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 * 0.9436

0.528 * 1.0337

0.404 * 0.9271

0.892 * 1.2783

0.115 * 1.0858

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9121

4.679 * -0.013214

0.327 * 1.008

-2.33

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was A$137.2 Mil.
Revenue was A$970.2 Mil.
Gross Profit was A$437.4 Mil.
Total Current Assets was A$292.4 Mil.
Total Assets was A$675.3 Mil.
Property, Plant and Equipment(Net PPE) was A$229.2 Mil.
Depreciation, Depletion and Amortization(DDA) was A$48.7 Mil.
Selling, General, & Admin. Expense(SGA) was A$148.9 Mil.
Total Current Liabilities was A$207.5 Mil.
Long-Term Debt & Capital Lease Obligation was A$259.6 Mil.
Net Income was A$17.1 Mil.
Gross Profit was A$2.8 Mil.
Cash Flow from Operations was A$23.2 Mil.

Total Receivables was A$113.8 Mil.
Revenue was A$759.0 Mil.
Gross Profit was A$353.7 Mil.
Total Current Assets was A$265.1 Mil.
Total Assets was A$624.4 Mil.
Property, Plant and Equipment(Net PPE) was A$206.0 Mil.
Depreciation, Depletion and Amortization(DDA) was A$48.4 Mil.
Selling, General, & Admin. Expense(SGA) was A$127.7 Mil.
Total Current Liabilities was A$206.0 Mil.
Long-Term Debt & Capital Lease Obligation was A$222.6 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)
	=	(137.243 / 970.212)	/	(113.781 / 758.976)
	=	0.141457	/	0.149914
	=	0.9436

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)
	=	(353.7 / 758.976)	/	(437.408 / 970.212)
	=	0.466023	/	0.450838
	=	1.0337

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 - (292.399 + 229.178) / 675.278)	/	(1 - (265.107 + 206.005) / 624.417)
	=	0.227611	/	0.245517
	=	0.9271

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
	=	970.212	/	758.976
	=	1.2783

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))
	=	(48.42 / (48.42 + 206.005))	/	(48.706 / (48.706 + 229.178))
	=	0.190311	/	0.175275
	=	1.0858

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)
	=	(148.931 / 970.212)	/	(127.732 / 758.976)
	=	0.153504	/	0.168295
	=	0.9121

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)
	=	((259.631 + 207.527) / 675.278)	/	((222.55 + 205.994) / 624.417)
	=	0.691801	/	0.686311
	=	1.008

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
	=	(17.148 - 2.843	-	23.228)	/	675.278
	=	-0.013214

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.

IVE Group has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.

IVE Group Beneish M-Score Related Terms

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IVE Group (ASX:IGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » IVE Group Ltd (ASX:IGL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

350-374 Parramatta Road, Building B, Homebush, Sydney, NSW, AUS, 2140

Website

https://www.ivegroup.com.au

IVE Group Ltd is a diversified print and marketing communications company. The principal activities of the company include conceptual and creative design across print, mobile and interactive media; catalogues, the printing of magazines, marketing, and corporate communications materials and stationery. Also, the company provides personalized communications including marketing mail, publication mail, e-communications, and multi-channel solutions. It serves sectors such as financial services, publishing, retail, communications, property, clubs and associations, not-for-profit, utilities, manufacturing, education, and government.

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