HRH Next Services Beneish M-Score Historical Data
The historical data trend for HRH Next Services'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.
HRH Next Services Beneish M-Score Chart
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HRH Next Services Annual Data
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|
Trend |
Mar21 |
Mar22 |
Mar23 |
| Beneish M-Score |
|
- |
- |
-2.54 |
|
HRH Next Services Semi-Annual Data
|
|
Mar21 |
Mar22 |
Mar23 |
Sep23 |
| Beneish M-Score |
- |
- |
-2.54 |
- |
Competitive Comparison of HRH Next Services's Beneish M-Score
For the Information Technology Services subindustry, HRH Next Services'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.
HRH Next Services's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, HRH Next Services's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where HRH Next Services's Beneish M-Score falls into.
HRH Next Services 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 HRH Next Services 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 * 1.501 | + | 0.528 * 0.852 | + | 0.404 * 1.2384 | + | 0.892 * 1.1582 | + | 0.115 * 0.984 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8951 | + | 4.679 * -0.147178 | - | 0.327 * 1.0135 |
| = | -2.54 |
* 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.
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) |
| = | (121.524 / 511.363) | / | (69.904 / 441.523) |
| = | 0.237647 | / | 0.158325 |
| | = | 1.501 |
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) |
| = | (158.591 / 441.523) | / | (215.587 / 511.363) |
| = | 0.359191 | / | 0.421593 |
| | = | 0.852 |
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 - (144.943 + 50.009) / 288.229) | / | (1 - (102.667 + 35.086) / 186.485) |
| = | 0.323621 | / | 0.261319 |
| | = | 1.2384 |
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 |
| = | 511.363 | / | 441.523 |
| | = | 1.1582 |
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)) |
| = | (11.174 / (11.174 + 35.086)) | / | (16.27 / (16.27 + 50.009)) |
| = | 0.241548 | / | 0.245477 |
| | = | 0.984 |
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) |
| = | (42.487 / 511.363) | / | (40.984 / 441.523) |
| = | 0.083086 | / | 0.092824 |
| | = | 0.8951 |
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) |
| = | ((13.483 + 161.097) / 288.229) | / | ((7.668 + 103.778) / 186.485) |
| = | 0.605699 | / | 0.597614 |
| | = | 1.0135 |
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 |
| = | (34.779 - 0 | - | 77.2) | / | 288.229 |
| | = | -0.147178 |
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.
HRH Next Services has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.
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