Falabella (XSGO:FALABELLA) Beneish M-Score : -2.81 (As of May. 10, 2024)

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What is Falabella 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSGO:FALABELLA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -2.52 Max: -2.23
Current: -2.81

During the past 13 years, the highest Beneish M-Score of Falabella was -2.23. The lowest was -3.14. And the median was -2.52.

Falabella Beneish M-Score Historical Data

The historical data trend for Falabella'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.

Falabella Beneish M-Score Chart

Falabella Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-3.14

-2.23

-2.39

-2.81

Falabella Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.62	-2.73	-2.84	-2.81	-

Competitive Comparison of Falabella's Beneish M-Score

For the Department Stores subindustry, Falabella'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.

Falabella's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

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

Falabella 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 Falabella 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 * 1.1014

0.528 * 0.9789

0.404 * 1.1323

0.892 * 0.9368

0.115 * 1.1137

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9798

4.679 * -0.05838

0.327 * 0.9655

-2.65

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was CLP6,428,733 Mil.
Revenue was 2850403.92 + 3112830.567 + 2682232.876 + 2600546.87 = CLP11,246,014 Mil.
Gross Profit was 1084656.163 + 1192586.063 + 1022151.394 + 945196.419 = CLP4,244,590 Mil.
Total Current Assets was CLP11,771,732 Mil.
Total Assets was CLP24,342,177 Mil.
Property, Plant and Equipment(Net PPE) was CLP4,062,838 Mil.
Depreciation, Depletion and Amortization(DDA) was CLP40,905 Mil.
Selling, General, & Admin. Expense(SGA) was CLP911,579 Mil.
Total Current Liabilities was CLP7,125,118 Mil.
Long-Term Debt & Capital Lease Obligation was CLP2,320,201 Mil.
Net Income was 58499.798 + 70435.112 + -4641.729 + 48829.331 = CLP173,123 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = CLP0 Mil.
Cash Flow from Operations was 57990.612 + 493354.637 + 606183.386 + 436699.411 = CLP1,594,228 Mil.

Total Receivables was CLP6,230,292 Mil.
Revenue was 2745115.815 + 3294558.792 + 2973020.374 + 2991381.405 = CLP12,004,076 Mil.
Gross Profit was 1005062.174 + 1256357.294 + 1087842.454 + 1085873.094 = CLP4,435,135 Mil.
Total Current Assets was CLP11,249,996 Mil.
Total Assets was CLP21,628,352 Mil.
Property, Plant and Equipment(Net PPE) was CLP3,702,318 Mil.
Depreciation, Depletion and Amortization(DDA) was CLP41,559 Mil.
Selling, General, & Admin. Expense(SGA) was CLP993,077 Mil.
Total Current Liabilities was CLP6,836,216 Mil.
Long-Term Debt & Capital Lease Obligation was CLP1,856,395 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)
	=	(6428733.096 / 11246014.233)	/	(6230291.92 / 12004076.386)
	=	0.571645	/	0.519015
	=	1.1014

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)
	=	(4435135.016 / 12004076.386)	/	(4244590.039 / 11246014.233)
	=	0.369469	/	0.377431
	=	0.9789

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 - (11771731.65 + 4062837.912) / 24342176.985)	/	(1 - (11249996.024 + 3702318.398) / 21628352.062)
	=	0.349501	/	0.308671
	=	1.1323

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
	=	11246014.233	/	12004076.386
	=	0.9368

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))
	=	(41559.324 / (41559.324 + 3702318.398))	/	(40904.903 / (40904.903 + 4062837.912))
	=	0.011101	/	0.009968
	=	1.1137

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)
	=	(911578.645 / 11246014.233)	/	(993076.504 / 12004076.386)
	=	0.081058	/	0.082728
	=	0.9798

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)
	=	((2320200.701 + 7125118.27) / 24342176.985)	/	((1856394.735 + 6836216.16) / 21628352.062)
	=	0.388023	/	0.401908
	=	0.9655

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
	=	(173122.512 - 0	-	1594228.046)	/	24342176.985
	=	-0.05838

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.

Falabella has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.

Falabella Beneish M-Score Related Terms

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Falabella (XSGO:FALABELLA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Falabella SA (XSGO:FALABELLA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Manuel Rodriguez Norte 730, Santiago, CHL

Website

https://www.falabella.com

Falabella SA is involved in offering products and services in five business divisions: department stores, home improvement, supermarkets, financial services, and real estate. All business segments operate in South American countries. The largest division by revenue, financial services offers access to credit by combining traditional financial business with proximity to customers through retail formats. Home improvement has a diverse customer base: from individuals to construction-sector players and corporates. This segment's main categories are construction materials, home improvement products, home accessories and furniture. The department stores segment offers various brands such as private brands, second generation, exclusive brands, and international brands.

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