Esab India (BOM:500133) Beneish M-Score : -2.26 (As of May. 17, 2024)

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What is Esab India 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 -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:500133' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67 Med: -2.33 Max: -1.81
Current: -2.26

During the past 13 years, the highest Beneish M-Score of Esab India was -1.81. The lowest was -2.67. And the median was -2.33.

Esab India Beneish M-Score Historical Data

The historical data trend for Esab India'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.

Esab India Beneish M-Score Chart

Esab India Annual Data

Trend

Dec13

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.40

-2.67

-2.33

-2.29

-2.26

Esab India 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															-	-2.26	-	-	-

Competitive Comparison of Esab India's Beneish M-Score

For the Tools & Accessories subindustry, Esab India'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.

Esab India's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Esab India's Beneish M-Score distribution charts can be found below:

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

Esab India 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 Esab India 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 * 0.9076

0.528 * 0.9623

0.404 * 1.0775

0.892 * 1.2188

0.115 * 1.1584

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8865

4.679 * 0.013586

0.327 * 1.0236

-2.26

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ₹1,528 Mil.
Revenue was ₹10,855 Mil.
Gross Profit was ₹4,090 Mil.
Total Current Assets was ₹3,512 Mil.
Total Assets was ₹4,740 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,142 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹119 Mil.
Selling, General, & Admin. Expense(SGA) was ₹64 Mil.
Total Current Liabilities was ₹2,036 Mil.
Long-Term Debt & Capital Lease Obligation was ₹35 Mil.
Net Income was ₹1,357 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹1,292 Mil.

Total Receivables was ₹1,381 Mil.
Revenue was ₹8,906 Mil.
Gross Profit was ₹3,229 Mil.
Total Current Assets was ₹3,363 Mil.
Total Assets was ₹4,361 Mil.
Property, Plant and Equipment(Net PPE) was ₹924 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹113 Mil.
Selling, General, & Admin. Expense(SGA) was ₹60 Mil.
Total Current Liabilities was ₹1,855 Mil.
Long-Term Debt & Capital Lease Obligation was ₹7 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)
	=	(1527.5 / 10855.1)	/	(1380.8 / 8906.2)
	=	0.140717	/	0.155038
	=	0.9076

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)
	=	(3229 / 8906.2)	/	(4089.8 / 10855.1)
	=	0.362556	/	0.376763
	=	0.9623

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 - (3511.7 + 1141.5) / 4740.1)	/	(1 - (3362.5 + 924.3) / 4361)
	=	0.018333	/	0.017014
	=	1.0775

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
	=	10855.1	/	8906.2
	=	1.2188

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))
	=	(113.3 / (113.3 + 924.3))	/	(118.8 / (118.8 + 1141.5))
	=	0.109194	/	0.094263
	=	1.1584

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)
	=	(64.3 / 10855.1)	/	(59.5 / 8906.2)
	=	0.005923	/	0.006681
	=	0.8865

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)
	=	((34.7 + 2036.4) / 4740.1)	/	((6.8 + 1854.8) / 4361)
	=	0.436932	/	0.426875
	=	1.0236

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
	=	(1356.8 - 0	-	1292.4)	/	4740.1
	=	0.013586

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.

Esab India has a M-score of -2.26 suggests that the company is unlikely to be a manipulator.

Esab India Beneish M-Score Related Terms

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Esab India (BOM:500133) Business Description

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ESABINDIA:India

Address

Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai, TN, IND, 600 058

Website

http://www.esabindia.com

Esab India Ltd is engaged in the production of welding and cutting equipment and consumables. The company focuses on areas such as Manual welding and cutting equipment, Welding Consumables, Welding automation, Mechanized cutting systems and others. It operates in the segment of fabrication technology. This includes manufacturing and selling of welding, cutting and allied products and also provides engineering, support and consulting services. It serves industries like Automotive, General fabrication and civil construction, Pipelines, Pipe mills, Power generation, Process industry, Repair and maintenance, Shipbuilding and offshore and Transport and mobile machinery industries. The company's brand includes ESAB, Exaton, Gasarc, Murex, Victor, Thermal Dynamics, Tweco.

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