PT Gudang Garam Tbk (ISX:GGRM) Beneish M-Score : 17.47 (As of May. 03, 2024)

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What is PT Gudang Garam 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.

Warning Sign:

Beneish M-Score 17.47 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ISX:GGRM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06 Med: -2.42 Max: 17.47
Current: 17.47

During the past 13 years, the highest Beneish M-Score of PT Gudang Garam Tbk was 17.47. The lowest was -3.06. And the median was -2.42.

PT Gudang Garam Tbk Beneish M-Score Historical Data

The historical data trend for PT Gudang Garam 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 Gudang Garam Tbk Beneish M-Score Chart

PT Gudang Garam Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.41

-2.51

-2.43

-2.94

17.47

PT Gudang Garam Tbk Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.94	-2.61	-2.43	-2.75	17.47

Competitive Comparison of PT Gudang Garam Tbk's Beneish M-Score

For the Tobacco subindustry, PT Gudang Garam 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 Gudang Garam Tbk's Beneish M-Score Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, PT Gudang Garam Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Gudang Garam Tbk's Beneish M-Score falls into.

PT Gudang Garam 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 Gudang Garam 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 * 0.9379

0.528 * 0.7253

0.404 * 50.9285

0.892 * 0.954

0.115 * 0.7255

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.006

4.679 * 0.0099

0.327 * 0.9693

17.47

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was Rp1,952,036 Mil.
Revenue was 37204424 + 25897494 + 26119850 + 29731229 = Rp118,952,997 Mil.
Gross Profit was 3177680 + 3484620 + 3577297 + 4356024 = Rp14,595,621 Mil.
Total Current Assets was Rp54,115,182 Mil.
Total Assets was Rp92,450,823 Mil.
Property, Plant and Equipment(Net PPE) was Rp24,902,659 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp909,381 Mil.
Selling, General, & Admin. Expense(SGA) was Rp3,249,741 Mil.
Total Current Liabilities was Rp29,536,433 Mil.
Long-Term Debt & Capital Lease Obligation was Rp0 Mil.
Net Income was 867344 + 1168953 + 1324734 + 1963483 = Rp5,324,514 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was -4426573 + 7746553 + -1761643 + 2850926 = Rp4,409,263 Mil.

Total Receivables was Rp2,181,496 Mil.
Revenue was 30763233 + 32247192 + 32381555 + 29290712 = Rp124,682,692 Mil.
Gross Profit was 3406225 + 2553257 + 1863441 + 3272680 = Rp11,095,603 Mil.
Total Current Assets was Rp55,445,127 Mil.
Total Assets was Rp88,562,617 Mil.
Property, Plant and Equipment(Net PPE) was Rp32,864,840 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp862,018 Mil.
Selling, General, & Admin. Expense(SGA) was Rp3,385,869 Mil.
Total Current Liabilities was Rp29,125,010 Mil.
Long-Term Debt & Capital Lease Obligation was Rp65,385 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)
	=	(1952036 / 118952997)	/	(2181496 / 124682692)
	=	0.01641	/	0.017496
	=	0.9379

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)
	=	(11095603 / 124682692)	/	(14595621 / 118952997)
	=	0.088991	/	0.122701
	=	0.7253

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 - (54115182 + 24902659) / 92450823)	/	(1 - (55445127 + 32864840) / 88562617)
	=	0.145299	/	0.002853
	=	50.9285

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
	=	118952997	/	124682692
	=	0.954

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))
	=	(862018 / (862018 + 32864840))	/	(909381 / (909381 + 24902659))
	=	0.025559	/	0.035231
	=	0.7255

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)
	=	(3249741 / 118952997)	/	(3385869 / 124682692)
	=	0.02732	/	0.027156
	=	1.006

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)
	=	((0 + 29536433) / 92450823)	/	((65385 + 29125010) / 88562617)
	=	0.319483	/	0.329602
	=	0.9693

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
	=	(5324514 - 0	-	4409263)	/	92450823
	=	0.0099

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 Gudang Garam Tbk has a M-score of 17.47 signals that the company is likely to be a manipulator.

PT Gudang Garam Tbk Beneish M-Score Related Terms

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PT Gudang Garam Tbk (ISX:GGRM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » PT Gudang Garam Tbk (ISX:GGRM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GGNPF:USA GDNGY:USA GGG:Germany

Address

Jl. Semampir II/1, East Java, Kediri, IDN, 64121

Website

https://www.gudanggaramtbk.com

PT Gudang Garam Tbk manufactures kretek cigarettes, which are clove cigarettes common in Indonesia. The firm's operations are almost entirely domestic, with its tobacco and clove farmers, two production facilities, and dozens of offices all located in Indonesia. Nearly all of the company's sales are generated in Indonesia. The company's brand families include Gudang Garam, Surya, GG, and Merah. Other brands include Sriwedari, which is a hand-rolled brand, and Klobot.

PT Gudang Garam Tbk (ISX:GGRM) Headlines

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