PT Woori Finance 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 Woori Finance Indonesia 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 | + | 0.528 * 1 | + | 0.404 * 1.0306 | + | 0.892 * 1.2847 | + | 0.115 * 0.975 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9427 | + | 4.679 * 0.258366 | - | 0.327 * 1.5865 |
| = | -1.19 |
* 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 Rp0 Mil.
Revenue was 86497.408 + 86567.181 + 85874.267 + 73531.121 = Rp332,470 Mil.
Gross Profit was 86497.408 + 86567.181 + 85874.267 + 73531.121 = Rp332,470 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp1,933,023 Mil.
Property, Plant and Equipment(Net PPE) was Rp126,964 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp16,532 Mil.
Selling, General, & Admin. Expense(SGA) was Rp60,661 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp793,872 Mil.
Net Income was 22514.161 + 22478.522 + 21914.637 + 18133.062 = Rp85,040 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was -46565.918 + -133980.679 + -128771.911 + -105069.434 = Rp-414,388 Mil.
|
Total Receivables was Rp0 Mil.
Revenue was 74737.707 + 48620.92 + 82623.151 + 52800.952 = Rp258,783 Mil.
Gross Profit was 74737.707 + 48620.92 + 82623.151 + 52800.952 = Rp258,783 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp1,414,391 Mil.
Property, Plant and Equipment(Net PPE) was Rp132,137 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp16,721 Mil.
Selling, General, & Admin. Expense(SGA) was Rp50,085 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp366,143 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) |
| = | (0 / 332469.977) | / | (0 / 258782.73) |
| = | 0 | / | 0 |
| | = | 1 |
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) |
| = | (258782.73 / 258782.73) | / | (332469.977 / 332469.977) |
| = | 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 + 126963.995) / 1933023.097) | / | (1 - (0 + 132136.802) / 1414391.344) |
| = | 0.934318 | / | 0.906577 |
| | = | 1.0306 |
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 |
| = | 332469.977 | / | 258782.73 |
| | = | 1.2847 |
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)) |
| = | (16720.77 / (16720.77 + 132136.802)) | / | (16532.348 / (16532.348 + 126963.995)) |
| = | 0.112327 | / | 0.115211 |
| | = | 0.975 |
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) |
| = | (60660.694 / 332469.977) | / | (50085.417 / 258782.73) |
| = | 0.182455 | / | 0.193542 |
| | = | 0.9427 |
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) |
| = | ((793872.191 + 0) / 1933023.097) | / | ((366143.476 + 0) / 1414391.344) |
| = | 0.410689 | / | 0.25887 |
| | = | 1.5865 |
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 |
| = | (85040.382 - 0 | - | -414387.942) | / | 1933023.097 |
| | = | 0.258366 |
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 Woori Finance Indonesia Tbk has a M-score of -1.19 signals that the company is likely to be a manipulator.
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