Charles & Colvard Ltd
CTHRQ Consumer Cyclical Luxury Goods
Charles & Colvard Ltd’s revenue for fiscal 2024 (year ended June 2024) was $22.0 million, down 26.7% from fiscal 2023. In the quarter to March 2025, revenue fell 23.0%, EPS grew 47.3% and free cash flow fell 23.0%, each against the same quarter a year earlier. Dividend growth for three consecutive years.
Follow CTHRQ
Charles & Colvard Ltd (CTHRQ) Beneish M-score
Charles & Colvard Ltd's Beneish M-score for fiscal 2024 is −3.12; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
Embed this chart
Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2024 | −3.12 | 0.96 |
| FY2023 | −4.08 | (2.05) |
| FY2022 | −2.03 | (1.00) |
| FY2021 | −1.03 | 2.55 |
| FY2020 | −3.58 | (1.22) |
| FY2019 | −2.36 | 1.06 |
| FY2015 | −3.43 | — |
How fiscal 2024’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 2.13 | — | 1.96 | |
| Gross margin index | 0.67 | — | 0.35 | |
| Asset quality index | 1.06 | — | 0.43 | |
| Sales growth index | 0.73 | — | 0.65 | |
| Depreciation index | 1.02 | — | 0.12 | |
| SG&A index | 1.34 | — | −0.23 | |
| Total accruals to total assets | (0.17) | — | −0.80 | |
| Leverage index | 2.34 | — | −0.77 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −3.12 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| JEWL Adamas One Corp. compare | −9.6× |
| LANV Lanvin Group Holdings Limited compare | −4.7× |
| CTHRQ Charles & Colvard Ltd | −3.1× |
| REAL The RealReal, Inc. compare | −2.8× |
| MOV Movado Group Inc. compare | −2.7× |
| LUXE LuxExperience B.V. - Sponsored ADR compare | −2.2× |
| ELA Envela Corporation compare | −0.6× |
| SORA AsiaStrategy compare | 810× |
| BRLT Brilliant Earth Group, Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI