PT Adaro Minerals Indonesia Tbk (ISX:ADMR) Beneish M-Score : -1.28 (As of May. 12, 2024)

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What is PT Adaro Minerals Indonesia 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 -1.28 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ISX:ADMR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.56 Med: -2.11 Max: 0.01
Current: -1.28

During the past 6 years, the highest Beneish M-Score of PT Adaro Minerals Indonesia Tbk was 0.01. The lowest was -2.56. And the median was -2.11.

PT Adaro Minerals Indonesia Tbk Beneish M-Score Historical Data

The historical data trend for PT Adaro Minerals Indonesia 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 Adaro Minerals Indonesia Tbk Beneish M-Score Chart

PT Adaro Minerals Indonesia Tbk Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.31

0.01

PT Adaro Minerals Indonesia Tbk Quarterly Data
	Dec18	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial											-2.12	-2.10	-2.56	0.01	-1.28

Competitive Comparison of PT Adaro Minerals Indonesia Tbk's Beneish M-Score

For the Thermal Coal subindustry, PT Adaro Minerals Indonesia 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 Adaro Minerals Indonesia Tbk's Beneish M-Score Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, PT Adaro Minerals Indonesia Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Adaro Minerals Indonesia Tbk's Beneish M-Score falls into.

PT Adaro Minerals Indonesia 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 Adaro Minerals Indonesia 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 * 1.2021

0.528 * 1.0564

0.404 * 1.735

0.892 * 1.175

0.115 * 3.7132

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9368

4.679 * 0.024824

0.327 * 0.7143

-1.28

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was Rp2,562,708 Mil.
Revenue was 4232245.016 + 5631986.335 + 3990522.931 + 3386229.871 = Rp17,240,984 Mil.
Gross Profit was 2421266.67 + 3138742.394 + 1960234.815 + 1783766.808 = Rp9,304,011 Mil.
Total Current Assets was Rp13,757,309 Mil.
Total Assets was Rp27,476,710 Mil.
Property, Plant and Equipment(Net PPE) was Rp12,359,063 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp9,664 Mil.
Selling, General, & Admin. Expense(SGA) was Rp411,201 Mil.
Total Current Liabilities was Rp3,103,255 Mil.
Long-Term Debt & Capital Lease Obligation was Rp6,117,559 Mil.
Net Income was 1788979.723 + 2937039.544 + 1350653.101 + 1184064.023 = Rp7,260,736 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 2153999.602 + 1042629.845 + 1772152.881 + 1609885.908 = Rp6,578,668 Mil.

Total Receivables was Rp1,814,415 Mil.
Revenue was 3588508.891 + 3801509.233 + 3519417.809 + 3764133.448 = Rp14,673,569 Mil.
Gross Profit was 2027994.252 + 1888161.941 + 1943503.79 + 2505393.539 = Rp8,365,054 Mil.
Total Current Assets was Rp10,277,834 Mil.
Total Assets was Rp20,243,101 Mil.
Property, Plant and Equipment(Net PPE) was Rp9,387,624 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp27,301 Mil.
Selling, General, & Admin. Expense(SGA) was Rp373,571 Mil.
Total Current Liabilities was Rp2,902,314 Mil.
Long-Term Debt & Capital Lease Obligation was Rp6,607,538 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)
	=	(2562708.405 / 17240984.153)	/	(1814414.946 / 14673569.381)
	=	0.14864	/	0.123652
	=	1.2021

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)
	=	(8365053.522 / 14673569.381)	/	(9304010.687 / 17240984.153)
	=	0.570076	/	0.539645
	=	1.0564

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 - (13757309.108 + 12359063.139) / 27476710.289)	/	(1 - (10277833.842 + 9387623.847) / 20243100.846)
	=	0.049509	/	0.028535
	=	1.735

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
	=	17240984.153	/	14673569.381
	=	1.175

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))
	=	(27300.77 / (27300.77 + 9387623.847))	/	(9663.836 / (9663.836 + 12359063.139))
	=	0.0029	/	0.000781
	=	3.7132

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)
	=	(411200.978 / 17240984.153)	/	(373570.683 / 14673569.381)
	=	0.02385	/	0.025459
	=	0.9368

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)
	=	((6117559.278 + 3103254.779) / 27476710.289)	/	((6607538.235 + 2902313.826) / 20243100.846)
	=	0.335587	/	0.469782
	=	0.7143

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
	=	(7260736.391 - 0	-	6578668.236)	/	27476710.289
	=	0.024824

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 Adaro Minerals Indonesia Tbk has a M-score of -1.28 signals that the company is likely to be a manipulator.

PT Adaro Minerals Indonesia Tbk Beneish M-Score Related Terms

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PT Adaro Minerals Indonesia Tbk (ISX:ADMR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » PT Adaro Minerals Indonesia Tbk (ISX:ADMR) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Cyber 2 Tower Lt.34 Jl. Rasuna Said, Blok X-5 No.13 Kel Kuningan Timur, Kec Setiabudi, Prov DKI, Kota Adm Jakarta Selatan, Jakarta, IDN

Website

https://www.adarominerals.id

PT Adaro Minerals Indonesia Tbk is engaged in metallurgical coal mining, and minerals mining and processing businesses. The company's business operations comprise coal mining and other services.

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