PT Sinar Mas Agro Resources & Technology Tbk (ISX:SMAR) Beneish M-Score : -2.45 (As of May. 21, 2024)

View and export this data going back to 1992. Start your Free Trial

What is PT Sinar Mas Agro Resources & Technology Tbk 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PT Sinar Mas Agro Resources & Technology Tbk's Beneish M-Score or its related term are showing as below:

ISX:SMAR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56 Med: -2.16 Max: -0.58
Current: -2.45

During the past 13 years, the highest Beneish M-Score of PT Sinar Mas Agro Resources & Technology Tbk was -0.58. The lowest was -3.56. And the median was -2.16.

PT Sinar Mas Agro Resources & Technology Tbk Beneish M-Score Historical Data

The historical data trend for PT Sinar Mas Agro Resources & Technology Tbk'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.

PT Sinar Mas Agro Resources & Technology Tbk Beneish M-Score Chart

PT Sinar Mas Agro Resources & Technology Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.56

-2.22

-1.85

-2.04

-2.67

PT Sinar Mas Agro Resources & Technology Tbk 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															-2.64	-2.69	-2.81	-2.67	-2.45

Competitive Comparison of PT Sinar Mas Agro Resources & Technology Tbk's Beneish M-Score

For the Farm Products subindustry, PT Sinar Mas Agro Resources & Technology Tbk'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.

PT Sinar Mas Agro Resources & Technology Tbk's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Sinar Mas Agro Resources & Technology Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Sinar Mas Agro Resources & Technology Tbk's Beneish M-Score falls into.

PT Sinar Mas Agro Resources & Technology Tbk 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 PT Sinar Mas Agro Resources & Technology Tbk 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 * 0.9414

0.528 * 1.6167

0.404 * 1.1883

0.892 * 0.8897

0.115 * 1.0909

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8715

4.679 * -0.054954

0.327 * 0.9696

-2.45

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was Rp5,891,249 Mil.
Revenue was 17882988 + 17622194 + 16290613 + 15097492 = Rp66,893,287 Mil.
Gross Profit was 1716458 + 1669025 + 1932797 + 1300568 = Rp6,618,848 Mil.
Total Current Assets was Rp18,696,116 Mil.
Total Assets was Rp38,721,736 Mil.
Property, Plant and Equipment(Net PPE) was Rp13,558,562 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp230,798 Mil.
Selling, General, & Admin. Expense(SGA) was Rp818,510 Mil.
Total Current Liabilities was Rp9,843,371 Mil.
Long-Term Debt & Capital Lease Obligation was Rp8,626,088 Mil.
Net Income was 177869 + 395727 + 237759 + 36068 = Rp847,423 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 949783 + 211019 + 706770 + 1107772 = Rp2,975,344 Mil.

Total Receivables was Rp7,034,077 Mil.
Revenue was 17520250 + 18009570 + 20930735 + 18724939 = Rp75,185,494 Mil.
Gross Profit was 1858498 + 2947669 + 3296011 + 3925147 = Rp12,027,325 Mil.
Total Current Assets was Rp21,171,585 Mil.
Total Assets was Rp39,942,217 Mil.
Property, Plant and Equipment(Net PPE) was Rp13,156,703 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp244,688 Mil.
Selling, General, & Admin. Expense(SGA) was Rp1,055,583 Mil.
Total Current Liabilities was Rp10,172,827 Mil.
Long-Term Debt & Capital Lease Obligation was Rp9,477,063 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)
	=	(5891249 / 66893287)	/	(7034077 / 75185494)
	=	0.088069	/	0.093556
	=	0.9414

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)
	=	(12027325 / 75185494)	/	(6618848 / 66893287)
	=	0.159969	/	0.098946
	=	1.6167

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 - (18696116 + 13558562) / 38721736)	/	(1 - (21171585 + 13156703) / 39942217)
	=	0.167014	/	0.140551
	=	1.1883

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
	=	66893287	/	75185494
	=	0.8897

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))
	=	(244688 / (244688 + 13156703))	/	(230798 / (230798 + 13558562))
	=	0.018258	/	0.016737
	=	1.0909

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)
	=	(818510 / 66893287)	/	(1055583 / 75185494)
	=	0.012236	/	0.01404
	=	0.8715

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)
	=	((8626088 + 9843371) / 38721736)	/	((9477063 + 10172827) / 39942217)
	=	0.476979	/	0.491958
	=	0.9696

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
	=	(847423 - 0	-	2975344)	/	38721736
	=	-0.054954

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.

PT Sinar Mas Agro Resources & Technology Tbk has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

PT Sinar Mas Agro Resources & Technology Tbk Beneish M-Score Related Terms

Thank you for viewing the detailed overview of PT Sinar Mas Agro Resources & Technology Tbk's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

PT Sinar Mas Agro Resources & Technology Tbk (ISX:SMAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Sinar Mas Agro Resources & Technology Tbk (ISX:SMAR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan MH Thamrin No. 51, Tower II, 28th-30th Floor, Sinar Mas Land Plaza, Jakarta, IDN, 10350

Website

https://www.smart-tbk.com

PT Sinar Mas Agro Resources & Technology Tbk is involved in the business of cultivating and harvesting oil palm trees, processing fresh fruit bunches into crude palm oil and palm kernel, and refining crude palm oil into value-added products. The firm's products include cooking oil, fat, margarine, crude palm oil, palm kernel, cocoa butter substitute, etc. Its scope of activities comprises plantation development, agriculture, trading, refining of plantation products, management services, and research related to the business.