Trustpilot Group (LSE:TRST) Beneish M-Score : -2.45 (As of May. 21, 2024)

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What is Trustpilot 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:TRST' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25 Med: -2.79 Max: -2.45
Current: -2.45

During the past 6 years, the highest Beneish M-Score of Trustpilot Group was -2.45. The lowest was -3.25. And the median was -2.79.

Trustpilot Group Beneish M-Score Historical Data

The historical data trend for Trustpilot 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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Trustpilot Group Beneish M-Score Chart

Trustpilot Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.25

-2.96

-2.61

-2.45

Trustpilot Group Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial					-2.96	-	-2.61	-	-2.45

Competitive Comparison of Trustpilot Group's Beneish M-Score

For the Software - Application subindustry, Trustpilot 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.

Trustpilot Group's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Trustpilot Group's Beneish M-Score distribution charts can be found below:

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

Trustpilot 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 Trustpilot 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 * 0.9329

0.528 * 0.9932

0.404 * 1.8944

0.892 * 1.1395

0.115 * 0.7703

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8294

4.679 * -0.088057

0.327 * 0.9466

-2.45

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £8.7 Mil.
Revenue was £139.3 Mil.
Gross Profit was £114.9 Mil.
Total Current Assets was £87.3 Mil.
Total Assets was £123.5 Mil.
Property, Plant and Equipment(Net PPE) was £18.8 Mil.
Depreciation, Depletion and Amortization(DDA) was £7.1 Mil.
Selling, General, & Admin. Expense(SGA) was £74.8 Mil.
Total Current Liabilities was £56.0 Mil.
Long-Term Debt & Capital Lease Obligation was £14.7 Mil.
Net Income was £5.6 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £16.5 Mil.

Total Receivables was £8.2 Mil.
Revenue was £122.3 Mil.
Gross Profit was £100.2 Mil.
Total Current Assets was £72.2 Mil.
Total Assets was £102.4 Mil.
Property, Plant and Equipment(Net PPE) was £22.6 Mil.
Depreciation, Depletion and Amortization(DDA) was £6.0 Mil.
Selling, General, & Admin. Expense(SGA) was £79.2 Mil.
Total Current Liabilities was £44.5 Mil.
Long-Term Debt & Capital Lease Obligation was £17.4 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)
	=	(8.686 / 139.326)	/	(8.171 / 122.273)
	=	0.062343	/	0.066826
	=	0.9329

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)
	=	(100.158 / 122.273)	/	(114.904 / 139.326)
	=	0.819134	/	0.824713
	=	0.9932

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 - (87.323 + 18.784) / 123.534)	/	(1 - (72.235 + 22.583) / 102.447)
	=	0.14107	/	0.074468
	=	1.8944

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
	=	139.326	/	122.273
	=	1.1395

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))
	=	(6.041 / (6.041 + 22.583))	/	(7.089 / (7.089 + 18.784))
	=	0.211047	/	0.273992
	=	0.7703

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)
	=	(74.846 / 139.326)	/	(79.194 / 122.273)
	=	0.537201	/	0.647682
	=	0.8294

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)
	=	((14.672 + 56.043) / 123.534)	/	((17.441 + 44.513) / 102.447)
	=	0.572434	/	0.604742
	=	0.9466

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
	=	(5.616 - 0	-	16.494)	/	123.534
	=	-0.088057

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.

Trustpilot Group has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

Trustpilot Group Beneish M-Score Related Terms

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Trustpilot Group (LSE:TRST) Business Description

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TRSTl:UK

Address

21 Mincing Lane, 5th Floor The Minster Building, London, GBR, EC3R 7AG

Website

https://www.trustpilot.com

Trustpilot Group PLC is a global review platform in an emerging and growing category. It seeks to provide a trust layer for the open commerce ecosystem by giving consumers the confidence to purchase goods and services from a wide range of online and offline businesses across the world.