Platinum Asset Management (ASX:PTM) Beneish M-Score : -5.91 (As of Apr. 06, 2025)

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What is Platinum Asset Management Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -5.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:PTM' s Beneish M-Score Range Over the Past 10 Years
Min: -5.91 Med: -2.67 Max: -2.24
Current: -5.91

During the past 13 years, the highest Beneish M-Score of Platinum Asset Management was -2.24. The lowest was -5.91. And the median was -2.67.

Platinum Asset Management 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 Platinum Asset Management 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 * 0.8137

0.528 * 0.9424

0.404 * 0.9728

0.892 * 0.8608

0.115 * 2.0271

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3162

4.679 * -0.067659

0.327 * 9.7001

-5.91

* 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 (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was A$17.5 Mil.
Revenue was A$185.1 Mil.
Gross Profit was A$185.1 Mil.
Total Current Assets was A$0.0 Mil.
Total Assets was A$346.2 Mil.
Property, Plant and Equipment(Net PPE) was A$13.8 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3.1 Mil.
Selling, General, & Admin. Expense(SGA) was A$78.6 Mil.
Total Current Liabilities was A$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was A$10.6 Mil.
Net Income was A$45.1 Mil.
Gross Profit was A$0.0 Mil.
Cash Flow from Operations was A$68.6 Mil.

Total Receivables was A$25.0 Mil.
Revenue was A$215.1 Mil.
Gross Profit was A$202.7 Mil.
Total Current Assets was A$0.0 Mil.
Total Assets was A$351.0 Mil.
Property, Plant and Equipment(Net PPE) was A$4.6 Mil.
Depreciation, Depletion and Amortization(DDA) was A$2.7 Mil.
Selling, General, & Admin. Expense(SGA) was A$69.4 Mil.
Total Current Liabilities was A$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was A$1.1 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)
	=	(17.496 / 185.128)	/	(24.977 / 215.061)
	=	0.094508	/	0.116139
	=	0.8137

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)
	=	(202.664 / 215.061)	/	(185.128 / 185.128)
	=	0.942356	/	1
	=	0.9424

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 - (0 + 13.801) / 346.207)	/	(1 - (0 + 4.578) / 350.982)
	=	0.960137	/	0.986957
	=	0.9728

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
	=	185.128	/	215.061
	=	0.8608

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))
	=	(2.729 / (2.729 + 4.578))	/	(3.117 / (3.117 + 13.801))
	=	0.373477	/	0.184242
	=	2.0271

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)
	=	(78.626 / 185.128)	/	(69.396 / 215.061)
	=	0.424712	/	0.322681
	=	1.3162

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)
	=	((10.639 + 0) / 346.207)	/	((1.112 + 0) / 350.982)
	=	0.03073	/	0.003168
	=	9.7001

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
	=	(45.135 - 0	-	68.559)	/	346.207
	=	-0.067659

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.

Platinum Asset Management has a M-score of -5.91 suggests that the company is unlikely to be a manipulator.

Platinum Asset Management Beneish M-Score Related Terms

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Platinum Asset Management Business Description

Industry

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PIJ:Germany

Address

Level 8, 7 Macquarie Place, Sydney, NSW, AUS, 2000

Website

https://www.platinum.com.au

Platinum Asset Management is an Australian-based niche fund manager with a specialty in international equities founded in 1994. It offers region and industry-specific funds in addition to global portfolios. There is flexibility in the investment strategies at Platinum, with funds having the option to engage in short-selling, taking positions in foreign exchange markets, and derivative-based activities to manage risk and aid performance.