GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Finolex Cables Ltd (NSE:FINCABLES) » Definitions » Beneish M-Score

Finolex Cables (NSE:FINCABLES) Beneish M-Score : -2.22 (As of May. 06, 2024)


View and export this data going back to 1995. Start your Free Trial

What is Finolex Cables 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 -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NSE:FINCABLES' s Beneish M-Score Range Over the Past 10 Years
Min: -2.56   Med: -1.91   Max: -0.45
Current: -2.22

During the past 13 years, the highest Beneish M-Score of Finolex Cables was -0.45. The lowest was -2.56. And the median was -1.91.


Finolex Cables Beneish M-Score Historical Data

The historical data trend for Finolex Cables'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.

Finolex Cables Beneish M-Score Chart

Finolex Cables 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 -1.91 -2.55 -1.89 -2.07 -2.22

Finolex Cables 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 - -2.22 - - -

Competitive Comparison of Finolex Cables's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Finolex Cables'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.


Finolex Cables's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Finolex Cables's Beneish M-Score distribution charts can be found below:

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



Finolex Cables 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 Finolex Cables 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 * 1.0091+0.528 * 1.0128+0.404 * 0.961+0.892 * 1.1924+0.115 * 0.8367
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1827+4.679 * 0.029732-0.327 * 0.992
=-2.22

* 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 ₹2,568 Mil.
Revenue was ₹44,103 Mil.
Gross Profit was ₹8,324 Mil.
Total Current Assets was ₹32,116 Mil.
Total Assets was ₹49,805 Mil.
Property, Plant and Equipment(Net PPE) was ₹4,593 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹464 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,009 Mil.
Total Current Liabilities was ₹3,201 Mil.
Long-Term Debt & Capital Lease Obligation was ₹100 Mil.
Net Income was ₹5,043 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹3,562 Mil.
Total Receivables was ₹2,134 Mil.
Revenue was ₹36,986 Mil.
Gross Profit was ₹7,070 Mil.
Total Current Assets was ₹27,973 Mil.
Total Assets was ₹44,940 Mil.
Property, Plant and Equipment(Net PPE) was ₹4,672 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹389 Mil.
Selling, General, & Admin. Expense(SGA) was ₹716 Mil.
Total Current Liabilities was ₹2,937 Mil.
Long-Term Debt & Capital Lease Obligation was ₹66 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)
=(2567.9 / 44102.8) / (2134 / 36985.7)
=0.058225 / 0.057698
=1.0091

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)
=(7070 / 36985.7) / (8324 / 44102.8)
=0.191155 / 0.188741
=1.0128

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 - (32115.8 + 4593) / 49804.5) / (1 - (27972.6 + 4672.1) / 44940.4)
=0.262942 / 0.2736
=0.961

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
=44102.8 / 36985.7
=1.1924

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))
=(388.5 / (388.5 + 4672.1)) / (464 / (464 + 4593))
=0.07677 / 0.091754
=0.8367

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)
=(1009.4 / 44102.8) / (715.7 / 36985.7)
=0.022887 / 0.019351
=1.1827

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)
=((100.4 + 3200.8) / 49804.5) / ((66.2 + 2936.5) / 44940.4)
=0.066283 / 0.066815
=0.992

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
=(5042.8 - 0 - 3562) / 49804.5
=0.029732

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.

Finolex Cables has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.


Finolex Cables Beneish M-Score Related Terms

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


Finolex Cables (NSE:FINCABLES) Business Description

Traded in Other Exchanges
Address
26-27 Mumbai-Pune Road, Pimpri, Pune, MH, IND, 411018
Finolex Cables Ltd is an electronic components company. The operating segments of the group are Electrical cables, Communication cables, Copper rods and Others - Trading of Electrical and other goods. It derives a majority of revenue from the Electrical cables segment. The group offers products like Wires and cables, Optical fibre cables, Switches, LED lightings, Fans, MCB, Water heater and other products. Geographically the business presence of the firm can be seen in the Indian and International market.

Finolex Cables (NSE:FINCABLES) Headlines

No Headlines