PT Budi Starch & Sweetener Tbk (ISX:BUDI) Beneish M-Score : -2.35 (As of May. 25, 2024)

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What is PT Budi Starch & Sweetener 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.

Good Sign:

Beneish M-Score -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PT Budi Starch & Sweetener Tbk's Beneish M-Score or its related term are showing as below:

ISX:BUDI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52 Med: -2.45 Max: 0.49
Current: -2.35

During the past 13 years, the highest Beneish M-Score of PT Budi Starch & Sweetener Tbk was 0.49. The lowest was -3.52. And the median was -2.45.

PT Budi Starch & Sweetener Tbk Beneish M-Score Historical Data

The historical data trend for PT Budi Starch & Sweetener 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 Budi Starch & Sweetener Tbk Beneish M-Score Chart

PT Budi Starch & Sweetener Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.68

-2.84

-2.82

-2.34

-2.40

PT Budi Starch & Sweetener Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.25	-2.41	-2.23	-2.40	-2.35

Competitive Comparison of PT Budi Starch & Sweetener Tbk's Beneish M-Score

For the Packaged Foods subindustry, PT Budi Starch & Sweetener 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 Budi Starch & Sweetener Tbk's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Budi Starch & Sweetener Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Budi Starch & Sweetener Tbk's Beneish M-Score falls into.

PT Budi Starch & Sweetener 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 Budi Starch & Sweetener 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 * 1.1938

0.528 * 1.0412

0.404 * 1.0481

0.892 * 1.1155

0.115 * 1.1087

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.401

4.679 * -0.027702

0.327 * 1.0095

-2.35

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was Rp1,286,542 Mil.
Revenue was 968170 + 763237 + 1232464 + 962120 = Rp3,925,991 Mil.
Gross Profit was 110625 + 135683 + 110274 + 104606 = Rp461,188 Mil.
Total Current Assets was Rp1,917,499 Mil.
Total Assets was Rp3,512,869 Mil.
Property, Plant and Equipment(Net PPE) was Rp1,585,656 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp37,233 Mil.
Selling, General, & Admin. Expense(SGA) was Rp79,262 Mil.
Total Current Liabilities was Rp1,446,867 Mil.
Long-Term Debt & Capital Lease Obligation was Rp180,550 Mil.
Net Income was 20798 + 29120 + 21581 + 15851 = Rp87,350 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was -75436 + 40724 + 103478 + 115898 = Rp184,664 Mil.

Total Receivables was Rp966,113 Mil.
Revenue was 987132 + 930454 + 853876 + 748008 = Rp3,519,470 Mil.
Gross Profit was 129928 + 117558 + 102719 + 80248 = Rp430,453 Mil.
Total Current Assets was Rp1,669,198 Mil.
Total Assets was Rp3,225,547 Mil.
Property, Plant and Equipment(Net PPE) was Rp1,547,841 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp40,398 Mil.
Selling, General, & Admin. Expense(SGA) was Rp50,715 Mil.
Total Current Liabilities was Rp1,231,700 Mil.
Long-Term Debt & Capital Lease Obligation was Rp248,500 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)
	=	(1286542 / 3925991)	/	(966113 / 3519470)
	=	0.327699	/	0.274505
	=	1.1938

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)
	=	(430453 / 3519470)	/	(461188 / 3925991)
	=	0.122306	/	0.11747
	=	1.0412

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 - (1917499 + 1585656) / 3512869)	/	(1 - (1669198 + 1547841) / 3225547)
	=	0.002765	/	0.002638
	=	1.0481

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
	=	3925991	/	3519470
	=	1.1155

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))
	=	(40398 / (40398 + 1547841))	/	(37233 / (37233 + 1585656))
	=	0.025436	/	0.022942
	=	1.1087

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)
	=	(79262 / 3925991)	/	(50715 / 3519470)
	=	0.020189	/	0.01441
	=	1.401

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)
	=	((180550 + 1446867) / 3512869)	/	((248500 + 1231700) / 3225547)
	=	0.463273	/	0.458899
	=	1.0095

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
	=	(87350 - 0	-	184664)	/	3512869
	=	-0.027702

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 Budi Starch & Sweetener Tbk has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.

PT Budi Starch & Sweetener Tbk Beneish M-Score Related Terms

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PT Budi Starch & Sweetener Tbk (ISX:BUDI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Budi Starch & Sweetener Tbk (ISX:BUDI) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

Jalan H.R. Rasuna Said Kav. C-6, Wisma Budi 8th - 9th Floor, Jakarta, IDN, 12940

Website

https://www.budistarchsweetener.com

PT Budi Starch & Sweetener Tbk is an Indonesia-based company involved in the packaged food business sector. The Company's primary activities include industrial food processing and chemicals, and all derivative products produced from cassava, sweet potato, palm oil, copra, and other agricultural products and a wide variety of industries, especially the plastics industry. The segments of the company are tapioca starch, sweeteners, PP Woven Bags, Sulphuric Acid, and Other Chemical Products. The company generates maximum revenue from Tapioca starch products.

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