The Goldmanchs Group 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 The Goldmanchs Group 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 * 1.0273 | + | 0.528 * 1 | + | 0.404 * 1.0369 | + | 0.892 * 2.1181 | + | 0.115 * 0.4239 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0271 | + | 4.679 * 0.020308 | - | 0.327 * 0.8485 |
| = | -1.37 |
* 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.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was ARS53,636,297 Mil.
Revenue was 4085798.004 + 4135359.264 + 2614799.979 + 2414851.256 = ARS13,250,809 Mil.
Gross Profit was 4085798.004 + 4135359.264 + 2614799.979 + 2414851.256 = ARS13,250,809 Mil.
Total Current Assets was ARS152,821,047 Mil.
Total Assets was ARS592,615,435 Mil.
Property, Plant and Equipment(Net PPE) was ARS4,842,815 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,384,888 Mil.
Selling, General, & Admin. Expense(SGA) was ARS4,622,239 Mil.
Total Current Liabilities was ARS118,141,582 Mil.
Long-Term Debt & Capital Lease Obligation was ARS90,285,739 Mil.
Net Income was 724888.001 + 720197.12 + 291839.998 + 638876.715 = ARS2,375,802 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was -10237238.009 + -8935623.546 + 7656239.939 + 1857760.243 = ARS-9,658,861 Mil.
|
Total Receivables was ARS24,649,076 Mil.
Revenue was 1775916.401 + 1663926.225 + 1427595.14 + 1388642.783 = ARS6,256,081 Mil.
Gross Profit was 1775916.401 + 1663926.225 + 1427595.14 + 1388642.783 = ARS6,256,081 Mil.
Total Current Assets was ARS67,400,663 Mil.
Total Assets was ARS241,717,596 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,226,592 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS335,837 Mil.
Selling, General, & Admin. Expense(SGA) was ARS2,124,643 Mil.
Total Current Liabilities was ARS57,210,058 Mil.
Long-Term Debt & Capital Lease Obligation was ARS42,985,291 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) |
| = | (53636297.048 / 13250808.503) | / | (24649075.868 / 6256080.549) |
| = | 4.047775 | / | 3.940019 |
| | = | 1.0273 |
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) |
| = | (6256080.549 / 6256080.549) | / | (13250808.503 / 13250808.503) |
| = | 1 | / | 1 |
| | = | 1 |
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 - (152821047.137 + 4842815.004) / 592615434.533) | / | (1 - (67400662.935 + 3226591.811) / 241717595.662) |
| = | 0.733952 | / | 0.707811 |
| | = | 1.0369 |
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 |
| = | 13250808.503 | / | 6256080.549 |
| | = | 2.1181 |
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)) |
| = | (335837.398 / (335837.398 + 3226591.811)) | / | (1384887.916 / (1384887.916 + 4842815.004)) |
| = | 0.094272 | / | 0.222375 |
| | = | 0.4239 |
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) |
| = | (4622238.956 / 13250808.503) | / | (2124643.003 / 6256080.549) |
| = | 0.348827 | / | 0.339612 |
| | = | 1.0271 |
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) |
| = | ((90285739.081 + 118141582.106) / 592615434.533) | / | ((42985291.161 + 57210057.967) / 241717595.662) |
| = | 0.351708 | / | 0.414514 |
| | = | 0.8485 |
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 |
| = | (2375801.834 - 0 | - | -9658861.373) | / | 592615434.533 |
| | = | 0.020308 |
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.
The Goldmanchs Group has a M-score of -1.37 signals that the company is likely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BUE:GS has been successfully added to your