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Sambandam Spinning Mills (BOM:521240) Beneish M-Score : -3.02 (As of May. 25, 2024)


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What is Sambandam Spinning Mills 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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:521240' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Med: -2.73   Max: -1.24
Current: -3.02

During the past 13 years, the highest Beneish M-Score of Sambandam Spinning Mills was -1.24. The lowest was -3.23. And the median was -2.73.


Sambandam Spinning Mills Beneish M-Score Historical Data

The historical data trend for Sambandam Spinning Mills'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.

Sambandam Spinning Mills Beneish M-Score Chart

Sambandam Spinning Mills Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.73 -3.04 -2.48 -2.89 -3.02

Sambandam Spinning Mills 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -3.02 - - -

Competitive Comparison of Sambandam Spinning Mills's Beneish M-Score

For the Textile Manufacturing subindustry, Sambandam Spinning Mills'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.


Sambandam Spinning Mills's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sambandam Spinning Mills's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sambandam Spinning Mills's Beneish M-Score falls into.



Sambandam Spinning Mills 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 Sambandam Spinning Mills 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 * 1.1405+0.528 * 1.5327+0.404 * 1.0444+0.892 * 0.739+0.115 * 0.904
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2549+4.679 * -0.144978-0.327 * 1.0043
=-3.02

* 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 (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was ₹315 Mil.
Revenue was ₹2,613 Mil.
Gross Profit was ₹653 Mil.
Total Current Assets was ₹1,222 Mil.
Total Assets was ₹2,794 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,467 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹152 Mil.
Selling, General, & Admin. Expense(SGA) was ₹39 Mil.
Total Current Liabilities was ₹992 Mil.
Long-Term Debt & Capital Lease Obligation was ₹659 Mil.
Net Income was ₹-117 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹288 Mil.
Total Receivables was ₹373 Mil.
Revenue was ₹3,536 Mil.
Gross Profit was ₹1,354 Mil.
Total Current Assets was ₹1,664 Mil.
Total Assets was ₹3,221 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,441 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹133 Mil.
Selling, General, & Admin. Expense(SGA) was ₹42 Mil.
Total Current Liabilities was ₹1,196 Mil.
Long-Term Debt & Capital Lease Obligation was ₹699 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)
=(314.739 / 2612.894) / (373.423 / 3535.518)
=0.120456 / 0.10562
=1.1405

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)
=(1354.354 / 3535.518) / (653.038 / 2612.894)
=0.383071 / 0.249929
=1.5327

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 - (1222.403 + 1466.61) / 2794.208) / (1 - (1664.499 + 1440.511) / 3221.125)
=0.037648 / 0.036048
=1.0444

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
=2612.894 / 3535.518
=0.739

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))
=(133.417 / (133.417 + 1440.511)) / (151.75 / (151.75 + 1466.61))
=0.084767 / 0.093768
=0.904

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)
=(38.856 / 2612.894) / (41.896 / 3535.518)
=0.014871 / 0.01185
=1.2549

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)
=((658.875 + 991.947) / 2794.208) / ((699.361 + 1195.585) / 3221.125)
=0.590801 / 0.588287
=1.0043

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
=(-117.299 - 0 - 287.8) / 2794.208
=-0.144978

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.

Sambandam Spinning Mills has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.


Sambandam Spinning Mills Beneish M-Score Related Terms

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Sambandam Spinning Mills (BOM:521240) Business Description

Traded in Other Exchanges
N/A
Address
Kamaraj Nagar Colony, Mill Premises, Salem, TN, IND, 636 014
Sambandam Spinning Mills Ltd is engaged in the manufacturing and distribution of cotton yarn and other related services. The company's product portfolio includes products like 100% cotton, Sustainable Yarns, Cellulosic Yarns, Sollucell Air yarns, Melange, R-Elan, and Core Spun Yarns. The company earns the majority of its revenue comes from the Indian market.

Sambandam Spinning Mills (BOM:521240) Headlines

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