PT Equity Development Investment 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 Equity Development Investment Tbk 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 * 1.1456 | + | 0.528 * 1 | + | 0.404 * 0.9995 | + | 0.892 * 0.7581 | + | 0.115 * 1.4683 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9526 | + | 4.679 * -0.033587 | - | 0.327 * 7.0788 |
| = | -4.64 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was Rp453,036 Mil.
Revenue was 298552 + 320383 + 299323 + 300337 = Rp1,218,595 Mil.
Gross Profit was 298552 + 320383 + 299323 + 300337 = Rp1,218,595 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp5,807,062 Mil.
Property, Plant and Equipment(Net PPE) was Rp128,001 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp21,160 Mil.
Selling, General, & Admin. Expense(SGA) was Rp93,764 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp513,464 Mil.
Net Income was 6222 + -45879 + 5409 + 3014 = Rp-31,234 Mil.
Non Operating Income was 26872 + 24645 + 32729 + 23638 = Rp107,884 Mil.
Cash Flow from Operations was 39292 + 27742 + -33292 + 22182 = Rp55,924 Mil.
|
Total Receivables was Rp521,670 Mil.
Revenue was 261404 + 570536 + 409244 + 366267 = Rp1,607,451 Mil.
Gross Profit was 261404 + 570536 + 409244 + 366267 = Rp1,607,451 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp5,690,469 Mil.
Property, Plant and Equipment(Net PPE) was Rp122,471 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp32,221 Mil.
Selling, General, & Admin. Expense(SGA) was Rp129,839 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp71,081 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) |
| = | (453036 / 1218595) | / | (521670 / 1607451) |
| = | 0.371769 | / | 0.324532 |
| | = | 1.1456 |
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) |
| = | (1607451 / 1607451) | / | (1218595 / 1218595) |
| = | 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 - (0 + 128001) / 5807062) | / | (1 - (0 + 122471) / 5690469) |
| = | 0.977958 | / | 0.978478 |
| | = | 0.9995 |
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 |
| = | 1218595 | / | 1607451 |
| | = | 0.7581 |
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)) |
| = | (32221 / (32221 + 122471)) | / | (21160 / (21160 + 128001)) |
| = | 0.208291 | / | 0.14186 |
| | = | 1.4683 |
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) |
| = | (93764 / 1218595) | / | (129839 / 1607451) |
| = | 0.076944 | / | 0.080773 |
| | = | 0.9526 |
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) |
| = | ((513464 + 0) / 5807062) | / | ((71081 + 0) / 5690469) |
| = | 0.088421 | / | 0.012491 |
| | = | 7.0788 |
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 |
| = | (-31234 - 107884 | - | 55924) | / | 5807062 |
| | = | -0.033587 |
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 Equity Development Investment Tbk has a M-score of -4.64 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ISX:GSMF has been successfully added to your