Marks Electrical Group (LSE:MRK) Beneish M-Score : -2.64 (As of May. 27, 2024)

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

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

LSE:MRK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.71 Med: -2.64 Max: -1.39
Current: -2.64

During the past 5 years, the highest Beneish M-Score of Marks Electrical Group was -1.39. The lowest was -2.71. And the median was -2.64.

Marks Electrical Group Beneish M-Score Historical Data

The historical data trend for Marks Electrical 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.

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Marks Electrical Group Beneish M-Score Chart

Marks Electrical Group Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

-1.39

-2.71

-2.64

Marks Electrical Group Semi-Annual Data
	Mar19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial				-	-2.71	-	-2.64	-

Competitive Comparison of Marks Electrical Group's Beneish M-Score

For the Internet Retail subindustry, Marks Electrical 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.

Marks Electrical Group's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Marks Electrical Group's Beneish M-Score distribution charts can be found below:

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

Marks Electrical 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 Marks Electrical 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 * 1.2285

0.528 * 1.0182

0.404 * 1.0242

0.892 * 1.2147

0.115 * 0.6964

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1188

4.679 * -0.119098

0.327 * 0.9098

-2.64

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was £3.4 Mil.
Revenue was £97.8 Mil.
Gross Profit was £19.0 Mil.
Total Current Assets was £28.2 Mil.
Total Assets was £32.8 Mil.
Property, Plant and Equipment(Net PPE) was £3.0 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.3 Mil.
Selling, General, & Admin. Expense(SGA) was £13.0 Mil.
Total Current Liabilities was £17.8 Mil.
Long-Term Debt & Capital Lease Obligation was £0.5 Mil.
Net Income was £5.2 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £9.1 Mil.

Total Receivables was £2.3 Mil.
Revenue was £80.5 Mil.
Gross Profit was £15.9 Mil.
Total Current Assets was £20.9 Mil.
Total Assets was £25.4 Mil.
Property, Plant and Equipment(Net PPE) was £3.2 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.9 Mil.
Selling, General, & Admin. Expense(SGA) was £9.6 Mil.
Total Current Liabilities was £14.2 Mil.
Long-Term Debt & Capital Lease Obligation was £1.3 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)
	=	(3.368 / 97.754)	/	(2.257 / 80.478)
	=	0.034454	/	0.028045
	=	1.2285

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)
	=	(15.895 / 80.478)	/	(18.962 / 97.754)
	=	0.197507	/	0.193977
	=	1.0182

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 - (28.154 + 2.977) / 32.847)	/	(1 - (20.888 + 3.169) / 25.35)
	=	0.052242	/	0.051006
	=	1.0242

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
	=	97.754	/	80.478
	=	1.2147

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))
	=	(0.878 / (0.878 + 3.169))	/	(1.347 / (1.347 + 2.977))
	=	0.216951	/	0.311517
	=	0.6964

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)
	=	(13.024 / 97.754)	/	(9.584 / 80.478)
	=	0.133232	/	0.119088
	=	1.1188

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)
	=	((0.473 + 17.768) / 32.847)	/	((1.324 + 14.15) / 25.35)
	=	0.555332	/	0.610414
	=	0.9098

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
	=	(5.157 - 0	-	9.069)	/	32.847
	=	-0.119098

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.

Marks Electrical Group has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.

Marks Electrical Group Beneish M-Score Related Terms

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Marks Electrical Group (LSE:MRK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Marks Electrical Group PLC (LSE:MRK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

4 Boston Road, Leicester, GBR, LE4 1AU

Website

https://www.markselectrical.co.uk

Marks Electrical Group PLC sells, delivers, installs, and recycles a wide range of household electrical products. Primarily through its retail website - markselectrical.co.uk, the company offers over 3,000 products from over fifty brands across its main product categories, which include Cooking, Refrigeration, Washers & Dryers, Dishwashers and Audio-Visual. These products are sourced from UK distributors of the brands, with whom the group maintains strong and direct relationships. Delivery to customers is operated by its own skilled team of delivery drivers in its owned and branded vehicles, who are also able to offer installation and recycling services.