PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Beneish M-Score

: -2.85 (As of Today)

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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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TLK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -3.23 Max: -2.79
Current: -2.85

During the past 13 years, the highest Beneish M-Score of PT Telkom Indonesia (Persero) Tbk was -2.79. The lowest was -3.31. And the median was -3.23.

PT Telkom Indonesia (Persero) Tbk Beneish M-Score Historical Data

The historical data trend for PT Telkom Indonesia (Persero) 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 Telkom Indonesia (Persero) Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-3.31

-3.27

-3.25

-3.29

-2.85

PT Telkom Indonesia (Persero) Tbk Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-3.29	-3.23	-3.03	-3.05	-2.85

Competitive Comparison

For the Telecom Services subindustry, PT Telkom Indonesia (Persero) 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 Telkom Indonesia (Persero) Tbk Beneish M-Score Distribution

For the Telecommunication Services industry and Communication Services sector, PT Telkom Indonesia (Persero) Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Telkom Indonesia (Persero) Tbk's Beneish M-Score falls into.

PT Telkom Indonesia (Persero) 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 Telkom Indonesia (Persero) 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 * 1.2288

0.528 * 1.0189

0.404 * 1.0216

0.892 * 0.9987

0.115 * 1.0889

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0265

4.679 * -0.124341

0.327 * 0.9831

-2.82

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $886 Mil.
Revenue was 2463.544 + 2432.049 + 2488.22 + 2396.096 = $9,780 Mil.
Gross Profit was 1640.244 + 1715.445 + 1722.148 + 1682.247 = $6,760 Mil.
Total Current Assets was $3,608 Mil.
Total Assets was $18,591 Mil.
Property, Plant and Equipment(Net PPE) was $12,759 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,135 Mil.
Selling, General, & Admin. Expense(SGA) was $1,641 Mil.
Total Current Liabilities was $4,635 Mil.
Long-Term Debt & Capital Lease Obligation was $2,764 Mil.
Net Income was 319.668 + 434.304 + 421.403 + 426.504 = $1,602 Mil.
Non Operating Income was -51.051 + -37.421 + 17.636 + 21.246 = $-50 Mil.
Cash Flow from Operations was 1154.904 + 1105.05 + 881.339 + 821.737 = $3,963 Mil.

Total Receivables was $722 Mil.
Revenue was 2443.074 + 2419.558 + 2476.765 + 2453.689 = $9,793 Mil.
Gross Profit was 1642.616 + 1728.406 + 1789.669 + 1736.427 = $6,897 Mil.
Total Current Assets was $3,501 Mil.
Total Assets was $17,470 Mil.
Property, Plant and Equipment(Net PPE) was $11,924 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,205 Mil.
Selling, General, & Admin. Expense(SGA) was $1,601 Mil.
Total Current Liabilities was $4,465 Mil.
Long-Term Debt & Capital Lease Obligation was $2,608 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)
	=	(885.573 / 9779.909)	/	(721.632 / 9793.086)
	=	0.09055	/	0.073688
	=	1.2288

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)
	=	(6897.118 / 9793.086)	/	(6760.084 / 9779.909)
	=	0.704284	/	0.691222
	=	1.0189

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 - (3608.459 + 12758.822) / 18590.555)	/	(1 - (3500.922 + 11923.845) / 17469.773)
	=	0.119592	/	0.11706
	=	1.0216

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
	=	9779.909	/	9793.086
	=	0.9987

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))
	=	(2205.071 / (2205.071 + 11923.845))	/	(2134.534 / (2134.534 + 12758.822))
	=	0.156068	/	0.143321
	=	1.0889

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)
	=	(1640.927 / 9779.909)	/	(1600.769 / 9793.086)
	=	0.167786	/	0.163459
	=	1.0265

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)
	=	((2764.465 + 4634.86) / 18590.555)	/	((2608.353 + 4464.751) / 17469.773)
	=	0.398015	/	0.404877
	=	0.9831

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
	=	(1601.879 - -49.59	-	3963.03)	/	18590.555
	=	-0.124341

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 Telkom Indonesia (Persero) Tbk has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.

PT Telkom Indonesia (Persero) Tbk Beneish M-Score Related Terms

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PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » PT Telkom Indonesia (Persero) Tbk (NYSE:TLK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TLKMF:USA TLKM:Indonesia TCID:Germany T1LK34:Brazil

Address

Jalan Japati No. 1, West Java, Bandung, IDN, 40133

Website

https://www.telkom.co.id

PT Telkom Indonesia (Persero) Tbk is the largest integrated telecommunications provider in Indonesia. It is the principal provider of fixed-line services in Indonesia, and its 65%-owned subsidiary, Telkomsel, is the largest wireless carrier in the country, with about 48% market share. It also provides a wide range of other communication services, including telephone network, interconnection services, multimedia, data and internet communication-related services, satellite transponder leasing, leased line, intelligent network and related services, cable television, and VoIP services.