Inoue Rubber (Thailand) PCL (BKK:IRC) Beneish M-Score : -3.22 (As of Apr. 26, 2024)

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What is Inoue Rubber (Thailand) PCL 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 -3.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Inoue Rubber (Thailand) PCL's Beneish M-Score or its related term are showing as below:

BKK:IRC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57 Med: -2.93 Max: -0.41
Current: -3.22

During the past 13 years, the highest Beneish M-Score of Inoue Rubber (Thailand) PCL was -0.41. The lowest was -3.57. And the median was -2.93.

Inoue Rubber (Thailand) PCL Beneish M-Score Historical Data

The historical data trend for Inoue Rubber (Thailand) PCL'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.

Inoue Rubber (Thailand) PCL Beneish M-Score Chart

Inoue Rubber (Thailand) PCL Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

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-2.69

-3.24

-2.27

-2.34

-3.15

Inoue Rubber (Thailand) PCL 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															-2.63	-2.64	-2.98	-3.15	-3.22

Competitive Comparison of Inoue Rubber (Thailand) PCL's Beneish M-Score

For the Auto Parts subindustry, Inoue Rubber (Thailand) PCL'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.

Inoue Rubber (Thailand) PCL's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Inoue Rubber (Thailand) PCL's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Inoue Rubber (Thailand) PCL's Beneish M-Score falls into.

Inoue Rubber (Thailand) PCL 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 Inoue Rubber (Thailand) PCL 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 * 0.9283

0.528 * 0.695

0.404 * 0.9076

0.892 * 0.8548

0.115 * 0.9873

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.151

4.679 * -0.088924

0.327 * 0.6992

-3.22

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ฿820 Mil.
Revenue was 1127.22 + 1254.788 + 1257.653 + 1441.143 = ฿5,081 Mil.
Gross Profit was 130.975 + 132.135 + 112.44 + 143.574 = ฿519 Mil.
Total Current Assets was ฿3,181 Mil.
Total Assets was ฿4,975 Mil.
Property, Plant and Equipment(Net PPE) was ฿1,502 Mil.
Depreciation, Depletion and Amortization(DDA) was ฿337 Mil.
Selling, General, & Admin. Expense(SGA) was ฿353 Mil.
Total Current Liabilities was ฿698 Mil.
Long-Term Debt & Capital Lease Obligation was ฿0 Mil.
Net Income was 51.707 + 53.407 + 29.733 + 60.915 = ฿196 Mil.
Non Operating Income was 11.959 + 12.969 + 8.136 + 11.546 = ฿45 Mil.
Cash Flow from Operations was 28.32 + 233.169 + 226.321 + 105.745 = ฿594 Mil.

Total Receivables was ฿1,033 Mil.
Revenue was 1463.621 + 1524.794 + 1387.128 + 1568.214 = ฿5,944 Mil.
Gross Profit was 102.418 + 104.016 + 70.997 + 144.651 = ฿422 Mil.
Total Current Assets was ฿3,232 Mil.
Total Assets was ฿5,184 Mil.
Property, Plant and Equipment(Net PPE) was ฿1,616 Mil.
Depreciation, Depletion and Amortization(DDA) was ฿357 Mil.
Selling, General, & Admin. Expense(SGA) was ฿359 Mil.
Total Current Liabilities was ฿1,040 Mil.
Long-Term Debt & Capital Lease Obligation was ฿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)
	=	(819.759 / 5080.804)	/	(1033.049 / 5943.757)
	=	0.161344	/	0.173804
	=	0.9283

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)
	=	(422.082 / 5943.757)	/	(519.124 / 5080.804)
	=	0.071013	/	0.102174
	=	0.695

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 - (3181.136 + 1502.219) / 4975.065)	/	(1 - (3232.265 + 1616.376) / 5183.53)
	=	0.058634	/	0.064606
	=	0.9076

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
	=	5080.804	/	5943.757
	=	0.8548

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))
	=	(356.873 / (356.873 + 1616.376))	/	(336.911 / (336.911 + 1502.219))
	=	0.180856	/	0.18319
	=	0.9873

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)
	=	(353.288 / 5080.804)	/	(359.084 / 5943.757)
	=	0.069534	/	0.060414
	=	1.151

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)
	=	((0.403 + 697.938) / 4975.065)	/	((0.586 + 1040.104) / 5183.53)
	=	0.140368	/	0.200769
	=	0.6992

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
	=	(195.762 - 44.61	-	593.555)	/	4975.065
	=	-0.088924

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.

Inoue Rubber (Thailand) PCL has a M-score of -3.22 suggests that the company is unlikely to be a manipulator.

Inoue Rubber (Thailand) PCL Beneish M-Score Related Terms

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Inoue Rubber (Thailand) PCL (BKK:IRC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Inoue Rubber (Thailand) PCL (BKK:IRC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 258, Soi Rangsit-Nakornnayok 49, Prachathipat Sub-district, Thanyaburi District, Pathumthani, THA, 12130

Website

https://www.ircthailand.com

Inoue Rubber (Thailand) PCL is principally engaged in the manufacture and distribution of Automotive Elastomer Products, motorcycle tires, tubes, and industrial elastomer rubber parts. Geographically, it derives a majority of its revenue from Thailand. The company's reportable segments includes geographical areas that are Local and Export, out of which key revenue is generated from Local Segment. Its products involve Automotive Elastomer Products, Motorcycle Tires and Tubes and Industrial Elastomer Parts.