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FGI Industries (FGI Industries) Beneish M-Score : -2.64 (As of May. 11, 2024)


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

FGI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.64   Med: -2.6   Max: -2.55
Current: -2.64

During the past 5 years, the highest Beneish M-Score of FGI Industries was -2.55. The lowest was -2.64. And the median was -2.60.


FGI Industries Beneish M-Score Historical Data

The historical data trend for FGI Industries'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.

FGI Industries Beneish M-Score Chart

FGI Industries Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - -2.55 -2.64

FGI Industries Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -2.55 -3.27 -3.57 -2.58 -2.64

Competitive Comparison of FGI Industries's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, FGI Industries'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.


FGI Industries's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, FGI Industries's Beneish M-Score distribution charts can be found below:

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



FGI Industries 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 FGI Industries 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 * 1.6461+0.528 * 0.7122+0.404 * 0.6809+0.892 * 0.725+0.115 * 0.1829
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5443+4.679 * -0.007255-0.327 * 1.0182
=-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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $23.8 Mil.
Revenue was 30.957 + 29.933 + 29.19 + 27.162 = $117.2 Mil.
Gross Profit was 9.035 + 7.829 + 8.01 + 7.202 = $32.1 Mil.
Total Current Assets was $46.1 Mil.
Total Assets was $65.7 Mil.
Property, Plant and Equipment(Net PPE) was $17.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.0 Mil.
Selling, General, & Admin. Expense(SGA) was $28.4 Mil.
Total Current Liabilities was $28.0 Mil.
Long-Term Debt & Capital Lease Obligation was $13.7 Mil.
Net Income was 0.539 + 0.41 + 0.088 + -0.303 = $0.7 Mil.
Non Operating Income was -0.197 + 0.05 + -0.011 + -0.02 = $-0.2 Mil.
Cash Flow from Operations was 3.985 + -1.588 + 0.223 + -1.231 = $1.4 Mil.
Total Receivables was $19.9 Mil.
Revenue was 31.79 + 38.544 + 47.809 + 43.575 = $161.7 Mil.
Gross Profit was 7.523 + 8.041 + 8.421 + 7.525 = $31.5 Mil.
Total Current Assets was $45.9 Mil.
Total Assets was $60.4 Mil.
Property, Plant and Equipment(Net PPE) was $11.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.2 Mil.
Selling, General, & Admin. Expense(SGA) was $25.4 Mil.
Total Current Liabilities was $29.8 Mil.
Long-Term Debt & Capital Lease Obligation was $7.8 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)
=(23.796 / 117.242) / (19.94 / 161.718)
=0.202965 / 0.123301
=1.6461

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)
=(31.51 / 161.718) / (32.076 / 117.242)
=0.194845 / 0.273588
=0.7122

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 - (46.115 + 17.114) / 65.745) / (1 - (45.888 + 11.086) / 60.367)
=0.038269 / 0.056206
=0.6809

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
=117.242 / 161.718
=0.725

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))
=(0.218 / (0.218 + 11.086)) / (2.017 / (2.017 + 17.114))
=0.019285 / 0.105431
=0.1829

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)
=(28.396 / 117.242) / (25.363 / 161.718)
=0.2422 / 0.156835
=1.5443

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)
=((13.674 + 28.044) / 65.745) / ((7.847 + 29.775) / 60.367)
=0.634543 / 0.623221
=1.0182

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
=(0.734 - -0.178 - 1.389) / 65.745
=-0.007255

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.

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


FGI Industries Beneish M-Score Related Terms

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FGI Industries (FGI Industries) Business Description

Traded in Other Exchanges
N/A
Address
906 Murray Road, East Hanover, NJ, USA, 07869
FGI Industries Ltd is a supplier of kitchen and bath products. It offers sanitaryware, bath furniture, shower systems, customer kitchen cabinetry, and other accessory items. It is business to business supplier of bath and kitchen products to large retail, wholesale, commercial, and specialty channel customers around the globe. its revenue is generated by sanitaryware. Geographically it operates in the United States, Canada, Europe, Rest of the World, and the majority of its revenue comes from the United States.
Executives
Todd M. Heysse director 906 MURRAY ROAD, EAST HANOVER NJ 07869
Myong Jae Chung director 906 MURRAY ROAD, EAST HANOVER NJ 07869
Kellie Z. Weir director 906 MURRAY ROAD, EAST HANOVER NJ 07869
John Shu-nan Chen director, officer: Executive Chairman 906 MURRAY ROAD, EAST HANOVER NJ 07869
David E. Bruce director, officer: Chief Executive Officer 906 MURRAY ROAD, EAST HANOVER NJ 07869
Jennifer Earl officer: Executive VP, Canada 906 MURRAY ROAD, EAST HANOVER NJ 07869
Perry Lin officer: Chief Financial Officer 906 MURRAY ROAD, EAST HANOVER NJ 07869
Robert Kermelewicz officer: Executive VP, United States 906 MURRAY ROAD, EAST HANOVER NJ 07869
Foremost Groups Ltd 10 percent owner 906 MURRAY ROAD, EAST HANOVER NJ 07869
Norman Kroenke officer: Executive VP, Europe 906 MURRAY ROAD, EAST HANOVER NJ 07869