Aarti Surfactants (BOM:543210) Beneish M-Score : -2.10 (As of May. 18, 2024)

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What is Aarti Surfactants 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 -2.1 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:543210' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75 Med: -2.36 Max: -1.82
Current: -2.1

During the past 6 years, the highest Beneish M-Score of Aarti Surfactants was -1.82. The lowest was -2.75. And the median was -2.36.

Aarti Surfactants Beneish M-Score Historical Data

The historical data trend for Aarti Surfactants'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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Aarti Surfactants Beneish M-Score Chart

Aarti Surfactants Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-1.82

-2.75

-2.62

-2.10

Aarti Surfactants Quarterly Data
	Mar19	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	-	-	-	-2.10

Competitive Comparison of Aarti Surfactants's Beneish M-Score

For the Specialty Chemicals subindustry, Aarti Surfactants'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.

Aarti Surfactants's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Aarti Surfactants's Beneish M-Score distribution charts can be found below:

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

Aarti Surfactants 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 Aarti Surfactants 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 * 0.8412

0.528 * 0.869

0.404 * 2.8206

0.892 * 0.981

0.115 * 0.9693

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -0.072538

0.327 * 0.8567

-2.10

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹702 Mil.
Revenue was ₹5,899 Mil.
Gross Profit was ₹1,433 Mil.
Total Current Assets was ₹1,995 Mil.
Total Assets was ₹4,223 Mil.
Property, Plant and Equipment(Net PPE) was ₹2,154 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹160 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹1,292 Mil.
Long-Term Debt & Capital Lease Obligation was ₹496 Mil.
Net Income was ₹213 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹520 Mil.

Total Receivables was ₹851 Mil.
Revenue was ₹6,013 Mil.
Gross Profit was ₹1,270 Mil.
Total Current Assets was ₹1,847 Mil.
Total Assets was ₹4,023 Mil.
Property, Plant and Equipment(Net PPE) was ₹2,151 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹155 Mil.
Selling, General, & Admin. Expense(SGA) was ₹255 Mil.
Total Current Liabilities was ₹1,464 Mil.
Long-Term Debt & Capital Lease Obligation was ₹525 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)
	=	(702.286 / 5898.574)	/	(851.02 / 6012.932)
	=	0.11906	/	0.141532
	=	0.8412

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)
	=	(1269.505 / 6012.932)	/	(1433.052 / 5898.574)
	=	0.211129	/	0.242949
	=	0.869

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 - (1994.97 + 2153.961) / 4223.093)	/	(1 - (1847.326 + 2150.687) / 4023.061)
	=	0.017561	/	0.006226
	=	2.8206

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
	=	5898.574	/	6012.932
	=	0.981

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))
	=	(154.869 / (154.869 + 2150.687))	/	(160.375 / (160.375 + 2153.961))
	=	0.067172	/	0.069296
	=	0.9693

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)
	=	(0 / 5898.574)	/	(254.631 / 6012.932)
	=	0	/	0.042347
	=	0

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)
	=	((495.952 + 1292.134) / 4223.093)	/	((524.722 + 1463.527) / 4023.061)
	=	0.423407	/	0.494213
	=	0.8567

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
	=	(213.269 - 0	-	519.604)	/	4223.093
	=	-0.072538

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.

Aarti Surfactants has a M-score of -2.10 suggests that the company is unlikely to be a manipulator.

Aarti Surfactants Beneish M-Score Related Terms

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Aarti Surfactants (BOM:543210) Business Description

Industry

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Traded in Other Exchanges

E1AARTIPP:India 890180:India AARTISURF:India

Address

Mulund-Goregaon Link Road, 2nd Floor, Unit 202, Plot 71, Udyog Kshetra, L.B.S. Marg, Mulund (West), Mumbai, MH, IND, 400 080

Website

https://www.aarti-surfactants.com

Aarti Surfactants Ltd is the producer of ionic and non-ionic surfactants and specialty products, serving Home and Personal Care, Industrial Applications, and the Agro and Oil industries. The company's product portfolio includes Surfactants, Mild surfactants, Rheology modifiers, Pearlising agents, UV filters, Syndet and soap bases, and Active ingredients, as well as conditioning agents, blends, proteins, and quats. Geographically the group has a business presence in India and Outside India, of which a majority of its revenue is derived from India. The products of the group have application in consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products.

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