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Ashmore Group (LSE:ASHM) Beneish M-Score : -2.56 (As of Oct. 31, 2024)


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What is Ashmore Group 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ASHM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78   Med: -2.51   Max: -2.06
Current: -2.56

During the past 13 years, the highest Beneish M-Score of Ashmore Group was -2.06. The lowest was -2.78. And the median was -2.51.


Ashmore Group Beneish M-Score Historical Data

The historical data trend for Ashmore Group'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.

Ashmore Group Beneish M-Score Chart

Ashmore Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.06 -2.17 -2.78 -2.52 -2.56

Ashmore Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.78 - -2.52 - -2.56

Competitive Comparison of Ashmore Group's Beneish M-Score

For the Asset Management subindustry, Ashmore Group'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.


Ashmore Group's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Ashmore Group's Beneish M-Score distribution charts can be found below:

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



Ashmore Group 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 Ashmore Group 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 * 0.8828+0.528 * 1.0093+0.404 * 1.0228+0.892 * 0.9783+0.115 * 1.1068
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1221+4.679 * 0.004695-0.327 * 0.9533
=-2.56

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was £57.0 Mil.
Revenue was £189.0 Mil.
Gross Profit was £164.0 Mil.
Total Current Assets was £806.0 Mil.
Total Assets was £979.7 Mil.
Property, Plant and Equipment(Net PPE) was £7.3 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.1 Mil.
Selling, General, & Admin. Expense(SGA) was £19.1 Mil.
Total Current Liabilities was £75.5 Mil.
Long-Term Debt & Capital Lease Obligation was £4.5 Mil.
Net Income was £93.7 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £89.1 Mil.
Total Receivables was £66.0 Mil.
Revenue was £193.2 Mil.
Gross Profit was £169.2 Mil.
Total Current Assets was £834.7 Mil.
Total Assets was £1,008.7 Mil.
Property, Plant and Equipment(Net PPE) was £6.5 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.2 Mil.
Selling, General, & Admin. Expense(SGA) was £17.4 Mil.
Total Current Liabilities was £82.7 Mil.
Long-Term Debt & Capital Lease Obligation was £3.7 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)
=(57 / 189) / (66 / 193.2)
=0.301587 / 0.341615
=0.8828

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)
=(169.2 / 193.2) / (164 / 189)
=0.875776 / 0.867725
=1.0093

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 - (806 + 7.3) / 979.7) / (1 - (834.7 + 6.5) / 1008.7)
=0.169848 / 0.166055
=1.0228

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
=189 / 193.2
=0.9783

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))
=(3.2 / (3.2 + 6.5)) / (3.1 / (3.1 + 7.3))
=0.329897 / 0.298077
=1.1068

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)
=(19.1 / 189) / (17.4 / 193.2)
=0.101058 / 0.090062
=1.1221

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)
=((4.5 + 75.5) / 979.7) / ((3.7 + 82.7) / 1008.7)
=0.081658 / 0.085655
=0.9533

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
=(93.7 - 0 - 89.1) / 979.7
=0.004695

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.

Ashmore Group has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.


Ashmore Group Beneish M-Score Related Terms

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Ashmore Group Business Description

Traded in Other Exchanges
Address
61 Aldwych, London, GBR, WC2B 4AE
Ashmore Group PLC is a value-oriented asset management firm that focuses its investments on emerging markets. It offers a diverse range of both traditional and alternative investment strategies to a global client base, including both institutional and retail investors. The company invests in sovereign debt instruments, currencies, corporate debt, equities, derivatives, private equity, real estate, distressed debt, and other special situations. The firm reports on changes in assets under management as the majority of its revenue is derived from management fees. The company also benefits from performance fees on its investments.

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