PT Indofood Sukses Makmur Tbk (STU:ISM) Beneish M-Score : -2.90 (As of May. 11, 2024)

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What is PT Indofood Sukses Makmur 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 -2.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PT Indofood Sukses Makmur Tbk's Beneish M-Score or its related term are showing as below:

STU:ISM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.74 Med: -2.56 Max: -0.36
Current: -2.9

During the past 13 years, the highest Beneish M-Score of PT Indofood Sukses Makmur Tbk was -0.36. The lowest was -4.74. And the median was -2.56.

PT Indofood Sukses Makmur Tbk Beneish M-Score Historical Data

The historical data trend for PT Indofood Sukses Makmur 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 Indofood Sukses Makmur Tbk Beneish M-Score Chart

PT Indofood Sukses Makmur Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.90

-2.30

-2.60

-2.55

-2.80

PT Indofood Sukses Makmur 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															-2.45	-2.58	-2.51	-2.80	-2.90

Competitive Comparison of PT Indofood Sukses Makmur Tbk's Beneish M-Score

For the Packaged Foods subindustry, PT Indofood Sukses Makmur 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 Indofood Sukses Makmur Tbk's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Indofood Sukses Makmur Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Indofood Sukses Makmur Tbk's Beneish M-Score falls into.

PT Indofood Sukses Makmur 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 Indofood Sukses Makmur 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 * 0.9849

0.528 * 0.9132

0.404 * 0.9045

0.892 * 0.9395

0.115 * 1.1512

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0981

4.679 * -0.064477

0.327 * 1.0229

-2.94

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €649 Mil.
Revenue was 1831.593 + 1654.562 + 1677.837 + 1569.081 = €6,733 Mil.
Gross Profit was 625.266 + 586.923 + 535.764 + 480.36 = €2,228 Mil.
Total Current Assets was €4,457 Mil.
Total Assets was €11,797 Mil.
Property, Plant and Equipment(Net PPE) was €2,285 Mil.
Depreciation, Depletion and Amortization(DDA) was €43 Mil.
Selling, General, & Admin. Expense(SGA) was €596 Mil.
Total Current Liabilities was €2,387 Mil.
Long-Term Debt & Capital Lease Obligation was €2,817 Mil.
Net Income was 145.72 + 63.306 + 91.522 + 105.444 = €406 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 184.686 + 636.261 + 137.916 + 207.747 = €1,167 Mil.

Total Receivables was €701 Mil.
Revenue was 1893.964 + 1800.786 + 1857.063 + 1614.517 = €7,166 Mil.
Gross Profit was 588.224 + 533.64 + 581.312 + 462.72 = €2,166 Mil.
Total Current Assets was €3,612 Mil.
Total Assets was €11,387 Mil.
Property, Plant and Equipment(Net PPE) was €2,382 Mil.
Depreciation, Depletion and Amortization(DDA) was €52 Mil.
Selling, General, & Admin. Expense(SGA) was €577 Mil.
Total Current Liabilities was €1,951 Mil.
Long-Term Debt & Capital Lease Obligation was €2,959 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)
	=	(648.543 / 6733.073)	/	(700.832 / 7166.33)
	=	0.096322	/	0.097795
	=	0.9849

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)
	=	(2165.896 / 7166.33)	/	(2228.313 / 6733.073)
	=	0.302232	/	0.33095
	=	0.9132

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 - (4457.205 + 2285.209) / 11796.694)	/	(1 - (3611.593 + 2381.829) / 11387.045)
	=	0.428449	/	0.473663
	=	0.9045

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
	=	6733.073	/	7166.33
	=	0.9395

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))
	=	(51.642 / (51.642 + 2381.829))	/	(42.919 / (42.919 + 2285.209))
	=	0.021222	/	0.018435
	=	1.1512

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)
	=	(595.672 / 6733.073)	/	(577.362 / 7166.33)
	=	0.08847	/	0.080566
	=	1.0981

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)
	=	((2816.554 + 2386.518) / 11796.694)	/	((2958.965 + 1951.097) / 11387.045)
	=	0.441062	/	0.431197
	=	1.0229

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
	=	(405.992 - 0	-	1166.61)	/	11796.694
	=	-0.064477

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 Indofood Sukses Makmur Tbk has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.

PT Indofood Sukses Makmur Tbk Beneish M-Score Related Terms

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PT Indofood Sukses Makmur Tbk (STU:ISM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Indofood Sukses Makmur Tbk (STU:ISM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PIFMY:USA PIFMF:USA INDF:Indonesia ISM:Germany

Address

Jalan Jend. Sudirman Kav 76-78, Sudirman Plaza, Indofood Tower, 27th Floor, Jakarta, IDN, 12910

Website

https://www.indofood.com

PT Indofood Sukses Makmur Tbk is an Indonesian packaged food company. Its portfolio is diversified with operations in both raw materials and processed food. The company divides its operations into: Consumer branded products business Group, Bogasari Business Group, Agribusiness Group and Distribution Business Group. The consumer branded products segment produces a varied range of consumer-branded products such as noodles, dairy, snack foods, special foods, food seasonings, and beverages. Bogasari produces, packages, and ships wheat flour and pasta. The agribusiness operations are research, development, production, and marketing of branded cooking oils, margarine and shortening, processes rubber, sugar cane, and other crops. The Distribution segment distributes consumer products.