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Akzo Nobel India (NSE:AKZOINDIA) Beneish M-Score : -2.62 (As of Apr. 29, 2024)


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What is Akzo Nobel 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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NSE:AKZOINDIA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84   Med: -2.36   Max: -1.87
Current: -2.62

During the past 13 years, the highest Beneish M-Score of Akzo Nobel India was -1.87. The lowest was -2.84. And the median was -2.36.


Akzo Nobel India Beneish M-Score Historical Data

The historical data trend for Akzo Nobel 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.

Akzo Nobel India Beneish M-Score Chart

Akzo Nobel India Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.17 -2.84 -2.51 -1.90 -2.62

Akzo Nobel 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -2.62 - - -

Competitive Comparison of Akzo Nobel India's Beneish M-Score

For the Specialty Chemicals subindustry, Akzo Nobel 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.


Akzo Nobel India's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Akzo Nobel India's Beneish M-Score distribution charts can be found below:

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



Akzo Nobel 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 Akzo Nobel India for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9193+0.528 * 1.0046+0.404 * 1.0083+0.892 * 1.2149+0.115 * 0.9629
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9924+4.679 * -0.055136-0.327 * 1.0052
=-2.62

* 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.

This Year (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was ₹5,646 Mil.
Revenue was ₹37,768 Mil.
Gross Profit was ₹14,826 Mil.
Total Current Assets was ₹18,682 Mil.
Total Assets was ₹27,405 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,795 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹825 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,978 Mil.
Total Current Liabilities was ₹12,639 Mil.
Long-Term Debt & Capital Lease Obligation was ₹530 Mil.
Net Income was ₹3,351 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹4,862 Mil.
Total Receivables was ₹5,055 Mil.
Revenue was ₹31,087 Mil.
Gross Profit was ₹12,260 Mil.
Total Current Assets was ₹17,604 Mil.
Total Assets was ₹25,916 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,566 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹759 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,470 Mil.
Total Current Liabilities was ₹11,838 Mil.
Long-Term Debt & Capital Lease Obligation was ₹551 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)
=(5646 / 37768) / (5055 / 31087)
=0.149492 / 0.162608
=0.9193

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)
=(12260 / 31087) / (14826 / 37768)
=0.394377 / 0.392555
=1.0046

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 - (18682 + 5795) / 27405) / (1 - (17604 + 5566) / 25916)
=0.106842 / 0.105958
=1.0083

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
=37768 / 31087
=1.2149

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))
=(759 / (759 + 5566)) / (825 / (825 + 5795))
=0.12 / 0.124622
=0.9629

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)
=(2978 / 37768) / (2470 / 31087)
=0.07885 / 0.079454
=0.9924

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)
=((530 + 12639) / 27405) / ((551 + 11838) / 25916)
=0.480533 / 0.478044
=1.0052

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
=(3351 - 0 - 4862) / 27405
=-0.055136

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.

Akzo Nobel India has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.


Akzo Nobel India Beneish M-Score Related Terms

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Akzo Nobel India (NSE:AKZOINDIA) Business Description

Traded in Other Exchanges
Address
Golf Course Extension Road, 9th Floor, Magnum Towers, Sector 58, Gurugram, HR, IND, 122 011
Akzo Nobel India Ltd manufactures and sells a variety of chemicals and coatings. The company organizes itself into only segments based on the product type. The coatings segment, which generates the vast majority of revenue, sells decorative paints under the Dulux brand and performance coatings for ships, cars, aircraft, and buildings. The vast majority of revenue comes from India.

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