RO Jewels (BOM:543171) Beneish M-Score : 5.05 (As of May. 26, 2024)

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What is RO Jewels 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 5.05 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BOM:543171' s Beneish M-Score Range Over the Past 10 Years
Min: -0.51 Med: 5.05 Max: 15.82
Current: 5.05

During the past 7 years, the highest Beneish M-Score of RO Jewels was 15.82. The lowest was -0.51. And the median was 5.05.

RO Jewels Beneish M-Score Historical Data

The historical data trend for RO Jewels'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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RO Jewels Beneish M-Score Chart

RO Jewels Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-0.51

15.82

5.05

RO Jewels Quarterly Data
	Mar17	Mar18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial												-	5.05	-	-	-

Competitive Comparison of RO Jewels's Beneish M-Score

For the Luxury Goods subindustry, RO Jewels'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.

RO Jewels's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RO Jewels's Beneish M-Score distribution charts can be found below:

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

RO Jewels 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 RO Jewels 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 * 0.1187

0.528 * 1.495

0.404 * 1.1919

0.892 * 10.1725

0.115 * 1.428

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4039

4.679 * -0.005119

0.327 * 1.9302

5.05

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ₹18 Mil.
Revenue was ₹5,065 Mil.
Gross Profit was ₹24 Mil.
Total Current Assets was ₹139 Mil.
Total Assets was ₹155 Mil.
Property, Plant and Equipment(Net PPE) was ₹5 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1 Mil.
Selling, General, & Admin. Expense(SGA) was ₹3 Mil.
Total Current Liabilities was ₹34 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 Mil.
Net Income was ₹20 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹21 Mil.

Total Receivables was ₹15 Mil.
Revenue was ₹498 Mil.
Gross Profit was ₹4 Mil.
Total Current Assets was ₹107 Mil.
Total Assets was ₹114 Mil.
Property, Plant and Equipment(Net PPE) was ₹1 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1 Mil.
Total Current Liabilities was ₹13 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 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)
	=	(17.968 / 5065.247)	/	(14.883 / 497.936)
	=	0.003547	/	0.029889
	=	0.1187

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)
	=	(3.579 / 497.936)	/	(24.353 / 5065.247)
	=	0.007188	/	0.004808
	=	1.495

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 - (139.093 + 5.45) / 155.095)	/	(1 - (106.593 + 0.779) / 113.872)
	=	0.068036	/	0.057082
	=	1.1919

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
	=	5065.247	/	497.936
	=	10.1725

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))
	=	(0.131 / (0.131 + 0.779))	/	(0.611 / (0.611 + 5.45))
	=	0.143956	/	0.100808
	=	1.428

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)
	=	(3.248 / 5065.247)	/	(0.79 / 497.936)
	=	0.000641	/	0.001587
	=	0.4039

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 + 34.102) / 155.095)	/	((0 + 12.972) / 113.872)
	=	0.219878	/	0.113917
	=	1.9302

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
	=	(20.098 - 0	-	20.892)	/	155.095
	=	-0.005119

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.

RO Jewels has a M-score of 5.05 signals that the company is likely to be a manipulator.

RO Jewels Beneish M-Score Related Terms

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RO Jewels (BOM:543171) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RO Jewels Ltd (BOM:543171) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Ground Floor, Hallmark4 Complex, Hari bhakti ni Pole Opp. B.D. College, Shankdi Sheri, Manekchowk, Ahmedabad, GJ, IND, 380001

Website

http://rojewels.co.in

RO Jewels Ltd is engaged in the wholesale business of precious metals and jewelry. It sells gold based chains, bracelets, gold/silver bars, and necklaces. It purchases readymade chains and other jewelry from manufacturers or independent jewelry wholesalers located in Ahmedabad and Mumbai. These are then sold through its showroom situated at Manek Chowk, Ahmedabad, and by the company's marketing and sales team directly to other jewelry stores. Its jewelry is widely sold throughout Gujarat only through B2B marketing and/ or Direct/Outbound marketing strategy.

RO Jewels (BOM:543171) Headlines

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