TIH (SGX:T55) Beneish M-Score : -3.86 (As of May. 25, 2024)

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What is TIH Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -3.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SGX:T55' s Beneish M-Score Range Over the Past 10 Years
Min: -3.86 Med: -2.36 Max: -0.02
Current: -3.86

During the past 13 years, the highest Beneish M-Score of TIH was -0.02. The lowest was -3.86. And the median was -2.36.

TIH 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 TIH 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

0.528 * 1

0.404 * 0.9995

0.892 * 0.2636

0.115 * 0.9857

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.422

4.679 * -0.00368

0.327 * 1.3566

-3.86

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was S$0.00 Mil.
Revenue was S$2.87 Mil.
Gross Profit was S$2.87 Mil.
Total Current Assets was S$0.00 Mil.
Total Assets was S$144.85 Mil.
Property, Plant and Equipment(Net PPE) was S$0.38 Mil.
Depreciation, Depletion and Amortization(DDA) was S$0.29 Mil.
Selling, General, & Admin. Expense(SGA) was S$7.17 Mil.
Total Current Liabilities was S$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was S$0.35 Mil.
Net Income was S$-4.40 Mil.
Gross Profit was S$0.00 Mil.
Cash Flow from Operations was S$-3.86 Mil.

Total Receivables was S$0.00 Mil.
Revenue was S$10.87 Mil.
Gross Profit was S$10.87 Mil.
Total Current Assets was S$0.00 Mil.
Total Assets was S$151.66 Mil.
Property, Plant and Equipment(Net PPE) was S$0.32 Mil.
Depreciation, Depletion and Amortization(DDA) was S$0.24 Mil.
Selling, General, & Admin. Expense(SGA) was S$6.15 Mil.
Total Current Liabilities was S$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was S$0.27 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 / 2.866)	/	(0 / 10.872)
	=	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)
	=	(10.872 / 10.872)	/	(2.866 / 2.866)
	=	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 + 0.378) / 144.846)	/	(1 - (0 + 0.321) / 151.658)
	=	0.99739	/	0.997883
	=	0.9995

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
	=	2.866	/	10.872
	=	0.2636

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))
	=	(0.236 / (0.236 + 0.321))	/	(0.285 / (0.285 + 0.378))
	=	0.423698	/	0.429864
	=	0.9857

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)
	=	(7.169 / 2.866)	/	(6.15 / 10.872)
	=	2.501396	/	0.565673
	=	4.422

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)
	=	((0.346 + 0) / 144.846)	/	((0.267 + 0) / 151.658)
	=	0.002389	/	0.001761
	=	1.3566

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
	=	(-4.397 - 0	-	-3.864)	/	144.846
	=	-0.00368

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.

TIH has a M-score of -3.86 suggests that the company is unlikely to be a manipulator.

TIH Beneish M-Score Related Terms

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TIH (SGX:T55) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

137 Telok Ayer Street, No 03-07, Singapore, SGP, 068602

Website

https://www.tih.com.sg

TIH Ltd is a Singapore-based private equity fund company. It has only one Private Equity segment which is to invest, for capital appreciation in growing private companies. The firm invests in a broad variety of sectors including consumer and industrial products, healthcare, technology, media and telecommunications, food, manufacturing, and chemicals, with a strong focus on Asia. Its primary geographic markets are China/Hong Kong SAR, Singapore, Taiwan, Thailand, Indonesia, Australia and others. Geographically, Australia contributes the majority of total revenue.