PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Beneish M-Score : -2.43 (As of May. 16, 2024)

View and export this data going back to 1996. Start your Free Trial

What is PT PP London Sumatra Indonesia Tbk 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PT PP London Sumatra Indonesia Tbk's Beneish M-Score or its related term are showing as below:

ISX:LSIP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46 Med: -2.43 Max: -0.27
Current: -2.43

During the past 13 years, the highest Beneish M-Score of PT PP London Sumatra Indonesia Tbk was -0.27. The lowest was -3.46. And the median was -2.43.

PT PP London Sumatra Indonesia Tbk Beneish M-Score Historical Data

The historical data trend for PT PP London Sumatra Indonesia Tbk'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.

PT PP London Sumatra Indonesia Tbk Beneish M-Score Chart

PT PP London Sumatra Indonesia Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-0.27

-3.39

-2.95

-2.04

-3.04

PT PP London Sumatra Indonesia Tbk 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															-2.19	-2.58	-2.28	-3.04	-2.43

Competitive Comparison of PT PP London Sumatra Indonesia Tbk's Beneish M-Score

For the Farm Products subindustry, PT PP London Sumatra Indonesia Tbk'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.

PT PP London Sumatra Indonesia Tbk's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PT PP London Sumatra Indonesia Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT PP London Sumatra Indonesia Tbk's Beneish M-Score falls into.

PT PP London Sumatra Indonesia Tbk 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 PT PP London Sumatra Indonesia Tbk 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 * 1.3889

0.528 * 0.9471

0.404 * 0.9756

0.892 * 0.8816

0.115 * 0.5497

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0196

4.679 * -0.029279

0.327 * 0.9213

-2.43

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was Rp231,863 Mil.
Revenue was 879465 + 1267060 + 1038950 + 979701 = Rp4,165,176 Mil.
Gross Profit was 257051 + 521083 + 300775 + 106756 = Rp1,185,665 Mil.
Total Current Assets was Rp5,741,486 Mil.
Total Assets was Rp12,858,497 Mil.
Property, Plant and Equipment(Net PPE) was Rp5,469,591 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp4,900 Mil.
Selling, General, & Admin. Expense(SGA) was Rp121,377 Mil.
Total Current Liabilities was Rp634,982 Mil.
Long-Term Debt & Capital Lease Obligation was Rp2,242 Mil.
Net Income was 269305 + 304405 + 291082 + 54553 = Rp919,345 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 277025 + 554353 + 300672 + 163783 = Rp1,295,833 Mil.

Total Receivables was Rp189,364 Mil.
Revenue was 904185 + 1540734 + 997287 + 1282395 = Rp4,724,601 Mil.
Gross Profit was 222254 + 395122 + 256520 + 399924 = Rp1,273,820 Mil.
Total Current Assets was Rp5,172,644 Mil.
Total Assets was Rp12,497,229 Mil.
Property, Plant and Equipment(Net PPE) was Rp5,683,377 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp2,799 Mil.
Selling, General, & Admin. Expense(SGA) was Rp135,030 Mil.
Total Current Liabilities was Rp672,216 Mil.
Long-Term Debt & Capital Lease Obligation was Rp0 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)
	=	(231863 / 4165176)	/	(189364 / 4724601)
	=	0.055667	/	0.04008
	=	1.3889

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)
	=	(1273820 / 4724601)	/	(1185665 / 4165176)
	=	0.269614	/	0.284661
	=	0.9471

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 - (5741486 + 5469591) / 12858497)	/	(1 - (5172644 + 5683377) / 12497229)
	=	0.128119	/	0.131326
	=	0.9756

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
	=	4165176	/	4724601
	=	0.8816

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))
	=	(2799 / (2799 + 5683377))	/	(4900 / (4900 + 5469591))
	=	0.000492	/	0.000895
	=	0.5497

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)
	=	(121377 / 4165176)	/	(135030 / 4724601)
	=	0.029141	/	0.02858
	=	1.0196

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)
	=	((2242 + 634982) / 12858497)	/	((0 + 672216) / 12497229)
	=	0.049557	/	0.053789
	=	0.9213

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
	=	(919345 - 0	-	1295833)	/	12858497
	=	-0.029279

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.

PT PP London Sumatra Indonesia Tbk has a M-score of -2.43 suggests that the company is unlikely to be a manipulator.

PT PP London Sumatra Indonesia Tbk Beneish M-Score Related Terms

Thank you for viewing the detailed overview of PT PP London Sumatra Indonesia Tbk's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT PP London Sumatra Indonesia Tbk (ISX:LSIP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PPLFY:USA

Address

Jalan HR. Rasuna Said Blok X-2 Kavling 5, 12th Floor, Ariobimo Sentral Building, Kuningan Timur, South Jakarta, Jakarta, IDN, 12950

Website

https://www.londonsumatra.com

PT PP London Sumatra Indonesia Tbk is engaged in plant breeding, planting, harvesting, processing, and the selling of palm products, rubber, oil palm seeds, cocoa, and tea. The company's operating segments are Oil Palm Products, Rubber, Seeds, and others. It generates a majority of its revenue from the oil palm products segment.

PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Headlines

No Headlines