TQR PCL (BKK:TQR) Beneish M-Score : -3.18 (As of Dec. 13, 2024)

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What is TQR PCL 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 -3.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BKK:TQR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18 Med: -2.44 Max: -1.84
Current: -3.18

During the past 6 years, the highest Beneish M-Score of TQR PCL was -1.84. The lowest was -3.18. And the median was -2.44.

TQR 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 TQR 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 * 1

0.528 * 1

0.404 * 0.9963

0.892 * 1.0454

0.115 * 1.1751

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0719

4.679 * -0.132434

0.327 * 1.3932

-3.18

* 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 (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ฿0.0 Mil.
Revenue was 59.674 + 60.814 + 80.686 + 64.758 = ฿265.9 Mil.
Gross Profit was 59.674 + 60.814 + 80.686 + 64.758 = ฿265.9 Mil.
Total Current Assets was ฿0.0 Mil.
Total Assets was ฿583.3 Mil.
Property, Plant and Equipment(Net PPE) was ฿11.6 Mil.
Depreciation, Depletion and Amortization(DDA) was ฿7.7 Mil.
Selling, General, & Admin. Expense(SGA) was ฿104.3 Mil.
Total Current Liabilities was ฿0.0 Mil.
Long-Term Debt & Capital Lease Obligation was ฿6.1 Mil.
Net Income was 22.661 + 23.887 + 30.743 + 29.166 = ฿106.5 Mil.
Non Operating Income was 7.228 + 3.302 + 5.432 + 1.012 = ฿17.0 Mil.
Cash Flow from Operations was 64.27 + 41.08 + 22.281 + 39.096 = ฿166.7 Mil.

Total Receivables was ฿0.0 Mil.
Revenue was 55.44 + 64.01 + 66.382 + 68.56 = ฿254.4 Mil.
Gross Profit was 55.44 + 64.01 + 66.382 + 68.56 = ฿254.4 Mil.
Total Current Assets was ฿0.0 Mil.
Total Assets was ฿558.1 Mil.
Property, Plant and Equipment(Net PPE) was ฿9.1 Mil.
Depreciation, Depletion and Amortization(DDA) was ฿8.0 Mil.
Selling, General, & Admin. Expense(SGA) was ฿93.1 Mil.
Total Current Liabilities was ฿0.0 Mil.
Long-Term Debt & Capital Lease Obligation was ฿4.2 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)
	=	(0 / 265.932)	/	(0 / 254.392)
	=	0	/	0
	=	1

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)
	=	(254.392 / 254.392)	/	(265.932 / 265.932)
	=	1	/	1
	=	1

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 + 11.637) / 583.264)	/	(1 - (0 + 9.084) / 558.129)
	=	0.980048	/	0.983724
	=	0.9963

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
	=	265.932	/	254.392
	=	1.0454

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))
	=	(7.969 / (7.969 + 9.084))	/	(7.683 / (7.683 + 11.637))
	=	0.467308	/	0.397671
	=	1.1751

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)
	=	(104.326 / 265.932)	/	(93.106 / 254.392)
	=	0.392303	/	0.365994
	=	1.0719

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)
	=	((6.105 + 0) / 583.264)	/	((4.193 + 0) / 558.129)
	=	0.010467	/	0.007513
	=	1.3932

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
	=	(106.457 - 16.974	-	166.727)	/	583.264
	=	-0.132434

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.

TQR PCL has a M-score of -3.18 suggests that the company is unlikely to be a manipulator.

TQR PCL Beneish M-Score Related Terms

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TQR PCL Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » TQR PCL (BKK:TQR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ratchadapisek Road, 46/7 Rungrojthanakul Building, 8th Floor, Huaykwang, Bangkok, THA, 10310

Website

https://www.tqr.co.th

TQR PCL is an integrated reinsurance solution provider. It operates in three segments: Traditional Business, which includes general insurance broker; Alternatives Business, which includes Reinsurance consultant together with developing new channels and new products; and Others. It also offers Treaty and Facultative Reinsurance. The majority of revenue is generated from the Alternative Business segment. Geographically, it operates mainly in Thailand.