Sri Lanka Telecom (COL:SLTL.N0000) Beneish M-Score : -2.77 (As of May. 23, 2024)

View and export this data going back to 2003. Start your Free Trial

What is Sri Lanka Telecom 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 -2.77 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

COL:SLTL.N0000' s Beneish M-Score Range Over the Past 10 Years
Min: -3.35 Med: -2.79 Max: -2.05
Current: -2.77

During the past 13 years, the highest Beneish M-Score of Sri Lanka Telecom was -2.05. The lowest was -3.35. And the median was -2.79.

Sri Lanka Telecom Beneish M-Score Historical Data

The historical data trend for Sri Lanka Telecom'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.

Sri Lanka Telecom Beneish M-Score Chart

Sri Lanka Telecom Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.79

-2.96

-3.20

-2.71

-2.70

Sri Lanka Telecom Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.53	-2.65	-2.72	-2.70	-2.77

Competitive Comparison of Sri Lanka Telecom's Beneish M-Score

For the Telecom Services subindustry, Sri Lanka Telecom'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.

Sri Lanka Telecom's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Sri Lanka Telecom's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sri Lanka Telecom's Beneish M-Score falls into.

Sri Lanka Telecom 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 Sri Lanka Telecom 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 * 1.0135

0.528 * 1.1419

0.404 * 1.114

0.892 * 0.9864

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0508

4.679 * -0.079741

0.327 * 1.0783

-2.77

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was රු34,616 Mil.
Revenue was 26929 + 25979 + 27712 + 26173 = රු106,793 Mil.
Gross Profit was 10775 + 8624 + 9861 + 9430 = රු38,690 Mil.
Total Current Assets was රු49,725 Mil.
Total Assets was රු247,238 Mil.
Property, Plant and Equipment(Net PPE) was රු181,663 Mil.
Depreciation, Depletion and Amortization(DDA) was රු0 Mil.
Selling, General, & Admin. Expense(SGA) was රු34,628 Mil.
Total Current Liabilities was රු85,197 Mil.
Long-Term Debt & Capital Lease Obligation was රු50,110 Mil.
Net Income was 154 + -1219 + -1544 + -2118 = රු-4,727 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = රු0 Mil.
Cash Flow from Operations was 2699 + 4365 + 5205 + 2719 = රු14,988 Mil.

Total Receivables was රු34,624 Mil.
Revenue was 26554 + 28099 + 26674 + 26936 = රු108,263 Mil.
Gross Profit was 10669 + 11994 + 11106 + 11020 = රු44,789 Mil.
Total Current Assets was රු52,446 Mil.
Total Assets was රු244,665 Mil.
Property, Plant and Equipment(Net PPE) was රු178,139 Mil.
Depreciation, Depletion and Amortization(DDA) was රු0 Mil.
Selling, General, & Admin. Expense(SGA) was රු33,408 Mil.
Total Current Liabilities was රු69,539 Mil.
Long-Term Debt & Capital Lease Obligation was රු54,632 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)
	=	(34616 / 106793)	/	(34624 / 108263)
	=	0.324141	/	0.319814
	=	1.0135

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)
	=	(44789 / 108263)	/	(38690 / 106793)
	=	0.413706	/	0.36229
	=	1.1419

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 - (49725 + 181663) / 247238)	/	(1 - (52446 + 178139) / 244665)
	=	0.064108	/	0.057548
	=	1.114

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
	=	106793	/	108263
	=	0.9864

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 / (0 + 178139))	/	(0 / (0 + 181663))
	=	0	/	0
	=	1

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)
	=	(34628 / 106793)	/	(33408 / 108263)
	=	0.324253	/	0.308582
	=	1.0508

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)
	=	((50110 + 85197) / 247238)	/	((54632 + 69539) / 244665)
	=	0.547274	/	0.507514
	=	1.0783

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
	=	(-4727 - 0	-	14988)	/	247238
	=	-0.079741

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.

Sri Lanka Telecom has a M-score of -2.77 suggests that the company is unlikely to be a manipulator.

Sri Lanka Telecom Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Sri Lanka Telecom's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Sri Lanka Telecom (COL:SLTL.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Sri Lanka Telecom PLC (COL:SLTL.N0000) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lotus Road, P.O. Box 503, Telecom Headquarters, Colombo, LKA, 01

Website

https://www.slt.lk

Sri Lanka Telecom PLC is the National Information and Communications Technology (ICT) solutions, and broadband and infrastructure services provider in Sri Lanka. It operates in three segments, namely, fixed ICT operations, mobile ICT operations, and other segment operations. Fixed ICT operations include the supply of fixed telecommunication services. Mobile ICT operations include the supply of mobile telecommunication services. Other segment operations include Directory publication and support services.

Sri Lanka Telecom (COL:SLTL.N0000) Headlines

No Headlines