NMDC (BOM:526371) Beneish M-Score : -1.56 (As of May. 22, 2024)

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What is NMDC 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 -1.56 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BOM:526371' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76 Med: -1.78 Max: 1.03
Current: -1.56

During the past 13 years, the highest Beneish M-Score of NMDC was 1.03. The lowest was -2.76. And the median was -1.78.

NMDC Beneish M-Score Historical Data

The historical data trend for NMDC'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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NMDC Beneish M-Score Chart

NMDC Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.24

-1.77

-2.76

-1.41

-1.56

NMDC 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															-	-1.56	-	-	-

Competitive Comparison of NMDC's Beneish M-Score

For the Steel subindustry, NMDC'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.

NMDC's Beneish M-Score Distribution in the Steel Industry

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

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

NMDC 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 NMDC 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 * 1.4967

0.528 * 1.1535

0.404 * 1.4708

0.892 * 0.6804

0.115 * 0.8683

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.8369

4.679 * 0.111013

0.327 * 0.658

-1.56

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ₹36,793 Mil.
Revenue was ₹176,669 Mil.
Gross Profit was ₹98,115 Mil.
Total Current Assets was ₹158,072 Mil.
Total Assets was ₹282,477 Mil.
Property, Plant and Equipment(Net PPE) was ₹43,803 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹3,362 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,596 Mil.
Total Current Liabilities was ₹42,014 Mil.
Long-Term Debt & Capital Lease Obligation was ₹50 Mil.
Net Income was ₹56,015 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹24,656 Mil.

Total Receivables was ₹36,129 Mil.
Revenue was ₹259,648 Mil.
Gross Profit was ₹166,339 Mil.
Total Current Assets was ₹157,182 Mil.
Total Assets was ₹249,123 Mil.
Property, Plant and Equipment(Net PPE) was ₹43,612 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹2,877 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,077 Mil.
Total Current Liabilities was ₹56,321 Mil.
Long-Term Debt & Capital Lease Obligation was ₹59 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)
	=	(36793 / 176668.8)	/	(36129.1 / 259647.9)
	=	0.20826	/	0.139147
	=	1.4967

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)
	=	(166339.4 / 259647.9)	/	(98115.1 / 176668.8)
	=	0.640634	/	0.555362
	=	1.1535

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 - (158072.1 + 43802.9) / 282477.1)	/	(1 - (157182.4 + 43611.8) / 249123.4)
	=	0.28534	/	0.193997
	=	1.4708

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
	=	176668.8	/	259647.9
	=	0.6804

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))
	=	(2877.4 / (2877.4 + 43611.8))	/	(3361.8 / (3361.8 + 43802.9))
	=	0.061894	/	0.071278
	=	0.8683

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)
	=	(2596.1 / 176668.8)	/	(2077.1 / 259647.9)
	=	0.014695	/	0.008
	=	1.8369

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)
	=	((50.2 + 42013.6) / 282477.1)	/	((58.5 + 56320.5) / 249123.4)
	=	0.14891	/	0.22631
	=	0.658

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
	=	(56014.6 - 0	-	24656.1)	/	282477.1
	=	0.111013

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.

NMDC has a M-score of -1.56 signals that the company is likely to be a manipulator.

NMDC Beneish M-Score Related Terms

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NMDC (BOM:526371) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » NMDC Ltd (BOM:526371) » Definitions » Beneish M-Score

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NMDC:India

Address

Khanij Bhavan, 10-3-311/A, Castle Hills, Masab Tank, Hyderabad, TG, IND, 500 028

Website

https://www.nmdc.co.in

NMDC Ltd is engaged in the mining of a wide range of minerals, including iron ore, copper, sponge iron, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. The company also owns a windmill project in Karnataka. Iron ore accounts for most of its revenue. It produces iron ore from three mines: namely, Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State), and Donimalai Iron Ore Mines (Karnataka State). Geographically, the company generates the majority of its revenue from the Indian domestic market. The Indian government owns a majority share of the company.

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