Promimic AB (OSTO:PRO) Beneish M-Score : -1.64 (As of May. 28, 2024)

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What is Promimic AB 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 -1.64 higher than -1.78, which implies that the company might have manipulated its financial results.

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

OSTO:PRO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.05 Med: -1.9 Max: -1.64
Current: -1.64

During the past 5 years, the highest Beneish M-Score of Promimic AB was -1.64. The lowest was -2.05. And the median was -1.90.

Promimic AB Beneish M-Score Historical Data

The historical data trend for Promimic AB'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.

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Promimic AB Beneish M-Score Chart

Promimic AB Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.90

Promimic AB Quarterly Data
	Dec19	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial								-	-	-2.05	-1.90	-1.64

Competitive Comparison of Promimic AB's Beneish M-Score

For the Medical Devices subindustry, Promimic AB'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.

Promimic AB's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Promimic AB's Beneish M-Score distribution charts can be found below:

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

Promimic AB 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 Promimic AB 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 * 1.0669

0.528 * 0.996

0.404 * 1.0434

0.892 * 1.9271

0.115 * 1.581

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -0.035525

0.327 * 1.4029

-1.64

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was kr9.75 Mil.
Revenue was 8.655 + 10.214 + 10.034 + 10.63 = kr39.53 Mil.
Gross Profit was 9.16 + 10.66 + 10.403 + 10.989 = kr41.21 Mil.
Total Current Assets was kr56.84 Mil.
Total Assets was kr86.64 Mil.
Property, Plant and Equipment(Net PPE) was kr10.32 Mil.
Depreciation, Depletion and Amortization(DDA) was kr4.43 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr13.64 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 Mil.
Net Income was -3.5 + -3.504 + -0.918 + -1.457 = kr-9.38 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.00 Mil.
Cash Flow from Operations was -0.627 + -2.564 + 0.566 + -3.676 = kr-6.30 Mil.

Total Receivables was kr4.74 Mil.
Revenue was 6.192 + 5.818 + 4.976 + 3.528 = kr20.51 Mil.
Gross Profit was 6.463 + 6.027 + 5.211 + 3.599 = kr21.30 Mil.
Total Current Assets was kr64.99 Mil.
Total Assets was kr87.80 Mil.
Property, Plant and Equipment(Net PPE) was kr3.89 Mil.
Depreciation, Depletion and Amortization(DDA) was kr3.51 Mil.
Selling, General, & Admin. Expense(SGA) was kr1.63 Mil.
Total Current Liabilities was kr9.85 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 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)
	=	(9.748 / 39.533)	/	(4.741 / 20.514)
	=	0.246579	/	0.23111
	=	1.0669

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)
	=	(21.3 / 20.514)	/	(41.212 / 39.533)
	=	1.038315	/	1.042471
	=	0.996

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 - (56.844 + 10.32) / 86.642)	/	(1 - (64.993 + 3.89) / 87.801)
	=	0.22481	/	0.215465
	=	1.0434

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
	=	39.533	/	20.514
	=	1.9271

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))
	=	(3.512 / (3.512 + 3.89))	/	(4.425 / (4.425 + 10.32))
	=	0.474466	/	0.300102
	=	1.581

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)
	=	(0 / 39.533)	/	(1.633 / 20.514)
	=	0	/	0.079604
	=	0

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)
	=	((0 + 13.64) / 86.642)	/	((0 + 9.853) / 87.801)
	=	0.157429	/	0.11222
	=	1.4029

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
	=	(-9.379 - 0	-	-6.301)	/	86.642
	=	-0.035525

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.

Promimic AB has a M-score of -1.64 signals that the company is likely to be a manipulator.

Promimic AB Beneish M-Score Related Terms

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