Farlim Group Malaysia Bhd (XKLS:6041) Beneish M-Score : -2.25 (As of Jun. 07, 2024)

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What is Farlim Group Malaysia 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:6041' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56 Med: -1.9 Max: 1.46
Current: -2.25

During the past 13 years, the highest Beneish M-Score of Farlim Group Malaysia Bhd was 1.46. The lowest was -3.56. And the median was -1.90.

Farlim Group Malaysia Bhd Beneish M-Score Historical Data

The historical data trend for Farlim Group Malaysia 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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Farlim Group Malaysia Bhd Beneish M-Score Chart

Farlim Group Malaysia Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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1.46

-0.59

-3.13

-3.56

-2.25

Farlim Group Malaysia 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															-3.56	-	-	-	-2.25

Competitive Comparison of Farlim Group Malaysia Bhd's Beneish M-Score

For the Real Estate - Diversified subindustry, Farlim Group Malaysia 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.

Farlim Group Malaysia Bhd's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Farlim Group Malaysia Bhd's Beneish M-Score distribution charts can be found below:

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

Farlim Group Malaysia 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 Farlim Group Malaysia 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 * 0.908

0.528 * 0.89

0.404 * 1.02

0.892 * 0.9158

0.115 * 1.1643

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.036

4.679 * 0.096974

0.327 * 1.0811

-2.25

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was RM4.05 Mil.
Revenue was RM15.38 Mil.
Gross Profit was RM3.62 Mil.
Total Current Assets was RM79.48 Mil.
Total Assets was RM146.37 Mil.
Property, Plant and Equipment(Net PPE) was RM4.00 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.51 Mil.
Selling, General, & Admin. Expense(SGA) was RM11.77 Mil.
Total Current Liabilities was RM22.06 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.35 Mil.
Net Income was RM-6.84 Mil.
Gross Profit was RM0.00 Mil.
Cash Flow from Operations was RM-21.03 Mil.

Total Receivables was RM4.87 Mil.
Revenue was RM16.79 Mil.
Gross Profit was RM3.51 Mil.
Total Current Assets was RM84.75 Mil.
Total Assets was RM152.33 Mil.
Property, Plant and Equipment(Net PPE) was RM3.41 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.51 Mil.
Selling, General, & Admin. Expense(SGA) was RM12.41 Mil.
Total Current Liabilities was RM21.57 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.00 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)
	=	(4.048 / 15.376)	/	(4.868 / 16.789)
	=	0.263267	/	0.289952
	=	0.908

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)
	=	(3.513 / 16.789)	/	(3.615 / 15.376)
	=	0.209244	/	0.235107
	=	0.89

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 - (79.476 + 4.004) / 146.369)	/	(1 - (84.753 + 3.407) / 152.33)
	=	0.429661	/	0.421256
	=	1.02

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
	=	15.376	/	16.789
	=	0.9158

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))
	=	(0.514 / (0.514 + 3.407))	/	(0.508 / (0.508 + 4.004))
	=	0.131089	/	0.112589
	=	1.1643

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)
	=	(11.771 / 15.376)	/	(12.406 / 16.789)
	=	0.765544	/	0.738936
	=	1.036

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)
	=	((0.352 + 22.055) / 146.369)	/	((0 + 21.57) / 152.33)
	=	0.153086	/	0.1416
	=	1.0811

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
	=	(-6.836 - 0	-	-21.03)	/	146.369
	=	0.096974

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.

Farlim Group Malaysia Bhd has a M-score of -2.25 suggests that the company is unlikely to be a manipulator.

Farlim Group Malaysia Bhd Beneish M-Score Related Terms

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Farlim Group Malaysia Bhd (XKLS:6041) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Farlim Group Malaysia Bhd (XKLS:6041) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 1, Lintang Angsana, Bandar Baru Ayer Itam, George Town, PNG, MYS, 11500

Website

https://www.farlim.com.my

Farlim Group Malaysia Bhd is principally involved in property development, investment holding, marketing and distribution of building materials. It is engaged in the development of residential and commercial properties. The company operates through the segments of; Property segment which comprises property-related activities; Trading segment which comprises mainly trading of building materials; and Investment and others segment which comprises mainly of investment holding activity and other inactive companies. Its properties include public amenities, such as a hypermarket, banks, pharmacies, clinics, restaurants, post office, petrol kiosk, kindergartens, police stations, and many others. It derives maximum revenue from the Property segment.

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