Efficient E-Solutions Bhd (XKLS:0064) Beneish M-Score : -2.57 (As of May. 25, 2024)

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What is Efficient E-Solutions Bhd 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 -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:0064' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.05 Max: 651.67
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Efficient E-Solutions Bhd was 651.67. The lowest was -2.86. And the median was -2.05.

Efficient E-Solutions Bhd Beneish M-Score Historical Data

The historical data trend for Efficient E-Solutions Bhd'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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Efficient E-Solutions Bhd Beneish M-Score Chart

Efficient E-Solutions Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.39

-2.43

-1.73

-1.49

-2.57

Efficient E-Solutions Bhd 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	Get a 7-Day Free Trial															-1.49	-2.43	-2.38	-2.47	-2.57

Competitive Comparison of Efficient E-Solutions Bhd's Beneish M-Score

For the Specialty Business Services subindustry, Efficient E-Solutions Bhd'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.

Efficient E-Solutions Bhd's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Efficient E-Solutions Bhd's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Efficient E-Solutions Bhd's Beneish M-Score falls into.

Efficient E-Solutions Bhd 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 Efficient E-Solutions Bhd 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 * 1.2333

0.528 * 0.7194

0.404 * 1.0695

0.892 * 1.0591

0.115 * 0.8397

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.971

4.679 * -0.00582

0.327 * 1.6045

-2.57

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was RM5.66 Mil.
Revenue was 4.769 + 4.254 + 4.752 + 6.234 = RM20.01 Mil.
Gross Profit was 2.27 + 2.498 + 2.728 + 2.588 = RM10.08 Mil.
Total Current Assets was RM53.44 Mil.
Total Assets was RM135.40 Mil.
Property, Plant and Equipment(Net PPE) was RM27.77 Mil.
Depreciation, Depletion and Amortization(DDA) was RM2.10 Mil.
Selling, General, & Admin. Expense(SGA) was RM13.59 Mil.
Total Current Liabilities was RM13.48 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.13 Mil.
Net Income was -0.704 + 0.072 + 0.083 + 0.072 = RM-0.48 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.00 Mil.
Cash Flow from Operations was 1.291 + -3.794 + 0.12 + 2.694 = RM0.31 Mil.

Total Receivables was RM4.33 Mil.
Revenue was 5.134 + 6.995 + 2.447 + 4.317 = RM18.89 Mil.
Gross Profit was 2.539 + 1.61 + 1.271 + 1.43 = RM6.85 Mil.
Total Current Assets was RM52.12 Mil.
Total Assets was RM128.77 Mil.
Property, Plant and Equipment(Net PPE) was RM28.45 Mil.
Depreciation, Depletion and Amortization(DDA) was RM1.79 Mil.
Selling, General, & Admin. Expense(SGA) was RM13.21 Mil.
Total Current Liabilities was RM7.88 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.19 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)
	=	(5.657 / 20.009)	/	(4.331 / 18.893)
	=	0.282723	/	0.229238
	=	1.2333

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)
	=	(6.85 / 18.893)	/	(10.084 / 20.009)
	=	0.362568	/	0.503973
	=	0.7194

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 - (53.437 + 27.765) / 135.398)	/	(1 - (52.123 + 28.451) / 128.769)
	=	0.400272	/	0.374275
	=	1.0695

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
	=	20.009	/	18.893
	=	1.0591

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))
	=	(1.787 / (1.787 + 28.451))	/	(2.102 / (2.102 + 27.765))
	=	0.059098	/	0.070379
	=	0.8397

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)
	=	(13.585 / 20.009)	/	(13.21 / 18.893)
	=	0.678944	/	0.699201
	=	0.971

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)
	=	((0.126 + 13.481) / 135.398)	/	((0.186 + 7.879) / 128.769)
	=	0.100496	/	0.062632
	=	1.6045

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
	=	(-0.477 - 0	-	0.311)	/	135.398
	=	-0.00582

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.

Efficient E-Solutions Bhd has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.

Efficient E-Solutions Bhd Beneish M-Score Related Terms

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Efficient E-Solutions Bhd (XKLS:0064) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Efficient E-Solutions Bhd (XKLS:0064) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

No. 3, Jalan Astaka U8/82, Taman Perindustrian Bukit Jelutong, Seksyen U8, Bukit Jelutong, Shah Alam, SGR, MYS, 40150

Website

https://www.efficient.com.my

Efficient E-Solutions Bhd is a business process outsourcing company that provides data and document management solutions primarily in Malaysia. It operates through segments which are Records Management, IT Services and others. The company offers imaging and data capture solutions that convert handwritten, typed, and printed Web forms into electronic forms for indexing and intelligent data capture purposes; archival and retrieval solutions, which offer multiple capture and document management systems for the processing and retrieval of digitalized documents. IT Services segment offers IT system integration, shared, and support, as well as other IT-related services.

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