Shantai Industries (BOM:512297) Beneish M-Score : -3.26 (As of May. 13, 2024)

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What is Shantai Industries 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 -3.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:512297' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73 Med: -1.38 Max: 8.52
Current: -3.26

During the past 13 years, the highest Beneish M-Score of Shantai Industries was 8.52. The lowest was -3.73. And the median was -1.38.

Shantai Industries Beneish M-Score Historical Data

The historical data trend for Shantai Industries'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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Shantai Industries Beneish M-Score Chart

Shantai Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-3.41

-1.18

4.04

-0.52

-3.26

Shantai Industries 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															-	-3.26	-	-	-

Competitive Comparison of Shantai Industries's Beneish M-Score

For the Textile Manufacturing subindustry, Shantai Industries'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.

Shantai Industries's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Shantai Industries's Beneish M-Score distribution charts can be found below:

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

Shantai Industries 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 Shantai Industries 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 * 1.6896

0.528 * 0.8873

0.404 * 0.9865

0.892 * 0.5664

0.115 * 1.5746

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3697

4.679 * 0.016749

0.327 * 4.1939

-3.26

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ₹15.65 Mil.
Revenue was ₹6.00 Mil.
Gross Profit was ₹0.84 Mil.
Total Current Assets was ₹77.41 Mil.
Total Assets was ₹77.86 Mil.
Property, Plant and Equipment(Net PPE) was ₹0.08 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0.02 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0.86 Mil.
Total Current Liabilities was ₹2.32 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.00 Mil.
Net Income was ₹-0.96 Mil.
Gross Profit was ₹0.00 Mil.
Cash Flow from Operations was ₹-2.26 Mil.

Total Receivables was ₹16.35 Mil.
Revenue was ₹10.60 Mil.
Gross Profit was ₹1.32 Mil.
Total Current Assets was ₹76.55 Mil.
Total Assets was ₹77.01 Mil.
Property, Plant and Equipment(Net PPE) was ₹0.10 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0.03 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1.10 Mil.
Total Current Liabilities was ₹0.55 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.00 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)
	=	(15.646 / 6.002)	/	(16.348 / 10.596)
	=	2.606798	/	1.542846
	=	1.6896

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)
	=	(1.319 / 10.596)	/	(0.842 / 6.002)
	=	0.124481	/	0.140287
	=	0.8873

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 - (77.411 + 0.081) / 77.855)	/	(1 - (76.553 + 0.095) / 77.012)
	=	0.004663	/	0.004727
	=	0.9865

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
	=	6.002	/	10.596
	=	0.5664

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))
	=	(0.031 / (0.031 + 0.095))	/	(0.015 / (0.015 + 0.081))
	=	0.246032	/	0.15625
	=	1.5746

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)
	=	(0.855 / 6.002)	/	(1.102 / 10.596)
	=	0.142453	/	0.104002
	=	1.3697

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 + 2.315) / 77.855)	/	((0 + 0.546) / 77.012)
	=	0.029735	/	0.00709
	=	4.1939

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
	=	(-0.957 - 0	-	-2.261)	/	77.855
	=	0.016749

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.

Shantai Industries has a M-score of -3.26 suggests that the company is unlikely to be a manipulator.

Shantai Industries Beneish M-Score Related Terms

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Shantai Industries (BOM:512297) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Shantai Industries Ltd (BOM:512297) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

820, Golden Point, Ring Road, Near Telephone Exchange Begampura, Falsawadi, Surat, GJ, IND, 395003

Website

https://www.shantaiindustrieslimited.com

Shantai Industries Ltd is an India-based company, involved in the textile division. It acts as a trendsetter in textiles and also has a remarkable presence in the exports of synthetic textiles items and finished garments industries. The company generates revenue and operates in India.

Shantai Industries (BOM:512297) Headlines

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