Prime Fresh (BOM:540404) Beneish M-Score : -1.42 (As of May. 21, 2024)

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What is Prime Fresh 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.

Warning Sign:

Beneish M-Score -1.42 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BOM:540404' s Beneish M-Score Range Over the Past 10 Years
Min: -4 Med: -1.58 Max: 1.67
Current: -1.42

During the past 12 years, the highest Beneish M-Score of Prime Fresh was 1.67. The lowest was -4.00. And the median was -1.58.

Prime Fresh Beneish M-Score Historical Data

The historical data trend for Prime Fresh'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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Prime Fresh Beneish M-Score Chart

Prime Fresh Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.10

-1.33

-1.49

-1.09

-1.42

Prime Fresh Semi-Annual Data
	Mar12	Mar13	Mar14	Mar15	Mar16	Sep16	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial														-	-1.09	-	-1.42	-

Competitive Comparison of Prime Fresh's Beneish M-Score

For the Food Distribution subindustry, Prime Fresh'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.

Prime Fresh's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Prime Fresh's Beneish M-Score distribution charts can be found below:

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

Prime Fresh 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 Prime Fresh 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 * 1.044

0.528 * 0.8114

0.404 * 1.3106

0.892 * 1.2868

0.115 * 0.8829

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9876

4.679 * 0.153235

0.327 * 0.9125

-1.42

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ₹262 Mil.
Revenue was ₹993 Mil.
Gross Profit was ₹221 Mil.
Total Current Assets was ₹385 Mil.
Total Assets was ₹402 Mil.
Property, Plant and Equipment(Net PPE) was ₹8 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1 Mil.
Selling, General, & Admin. Expense(SGA) was ₹18 Mil.
Total Current Liabilities was ₹95 Mil.
Long-Term Debt & Capital Lease Obligation was ₹1 Mil.
Net Income was ₹51 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-11 Mil.

Total Receivables was ₹195 Mil.
Revenue was ₹772 Mil.
Gross Profit was ₹139 Mil.
Total Current Assets was ₹293 Mil.
Total Assets was ₹306 Mil.
Property, Plant and Equipment(Net PPE) was ₹6 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1 Mil.
Selling, General, & Admin. Expense(SGA) was ₹14 Mil.
Total Current Liabilities was ₹75 Mil.
Long-Term Debt & Capital Lease Obligation was ₹4 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)
	=	(262.372 / 993.456)	/	(195.303 / 772.021)
	=	0.2641	/	0.252976
	=	1.044

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)
	=	(139.463 / 772.021)	/	(221.192 / 993.456)
	=	0.180647	/	0.222649
	=	0.8114

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 - (384.527 + 7.767) / 402.285)	/	(1 - (293.4 + 6.4) / 305.591)
	=	0.024836	/	0.01895
	=	1.3106

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
	=	993.456	/	772.021
	=	1.2868

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))
	=	(0.835 / (0.835 + 6.4))	/	(1.168 / (1.168 + 7.767))
	=	0.115411	/	0.130722
	=	0.8829

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)
	=	(17.585 / 993.456)	/	(13.837 / 772.021)
	=	0.017701	/	0.017923
	=	0.9876

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)
	=	((1.008 + 94.589) / 402.285)	/	((4.275 + 75.305) / 305.591)
	=	0.237635	/	0.260413
	=	0.9125

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
	=	(50.713 - 0	-	-10.931)	/	402.285
	=	0.153235

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.

Prime Fresh has a M-score of -1.42 signals that the company is likely to be a manipulator.

Prime Fresh Beneish M-Score Related Terms

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Prime Fresh (BOM:540404) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Prime Fresh Ltd (BOM:540404) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

102, Sanskar - 2, Polytechnic Road, Near Ketav Petrol Pump, Ambawadi, Ahmedabad, GJ, IND, 380015

Website

http://www.primefreshlimited.com

Prime Fresh Ltd is an integrated Agri value chain institution in the domestic and international agricultural trade. The company is engaged in the procurement and distribution of Fruits and Vegetables. It focuses on sourcing, handling, grading, sorting, warehousing, packing, ripening, branding, warehousing, delivery of fruits and vegetables and manpower management. The group sells its products in India and also exports it to other countries, of which a majority of revenue is derived from the sales made in India.

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