Thai Rayon PCL (BKK:TR) Beneish M-Score : -2.36 (As of Jun. 04, 2024)

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What is Thai Rayon 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BKK:TR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.38 Max: 0.94
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Thai Rayon PCL was 0.94. The lowest was -3.21. And the median was -2.38.

Thai Rayon PCL Beneish M-Score Historical Data

The historical data trend for Thai Rayon 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.

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Thai Rayon PCL Beneish M-Score Chart

Thai Rayon PCL Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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0.55

-2.38

-2.72

0.94

-2.36

Thai Rayon PCL 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															0.94	-4.95	-4.44	-	-2.36

Competitive Comparison of Thai Rayon PCL's Beneish M-Score

For the Textile Manufacturing subindustry, Thai Rayon 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.

Thai Rayon PCL's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Thai Rayon PCL's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Thai Rayon PCL's Beneish M-Score falls into.

Thai Rayon 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 Thai Rayon 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 * 0.9854

0.528 * 2.5779

0.404 * 1.0475

0.892 * 1.1193

0.115 * 0.9257

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6224

4.679 * -0.105787

0.327 * 2.196

-2.36

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ฿1,685 Mil.
Revenue was 2241.438 + 2316.265 + 2386.252 + 2367.044 = ฿9,311 Mil.
Gross Profit was 78.41 + -2.706 + 46.299 + -26.263 = ฿96 Mil.
Total Current Assets was ฿4,099 Mil.
Total Assets was ฿36,810 Mil.
Property, Plant and Equipment(Net PPE) was ฿2,171 Mil.
Depreciation, Depletion and Amortization(DDA) was ฿361 Mil.
Selling, General, & Admin. Expense(SGA) was ฿677 Mil.
Total Current Liabilities was ฿5,605 Mil.
Long-Term Debt & Capital Lease Obligation was ฿1 Mil.
Net Income was -3105.131 + 302.026 + 443.308 + 508.281 = ฿-1,852 Mil.
Non Operating Income was 323.652 + 491.561 + 498.742 + 666.849 = ฿1,981 Mil.
Cash Flow from Operations was -241.83 + -476.834 + 583.78 + 196.621 = ฿62 Mil.

Total Receivables was ฿1,527 Mil.
Revenue was 1658.997 + 1192.839 + 2292.4 + 3174.028 = ฿8,318 Mil.
Gross Profit was -371.374 + -208.243 + 233.05 + 567.053 = ฿220 Mil.
Total Current Assets was ฿4,345 Mil.
Total Assets was ฿32,640 Mil.
Property, Plant and Equipment(Net PPE) was ฿2,442 Mil.
Depreciation, Depletion and Amortization(DDA) was ฿372 Mil.
Selling, General, & Admin. Expense(SGA) was ฿971 Mil.
Total Current Liabilities was ฿2,262 Mil.
Long-Term Debt & Capital Lease Obligation was ฿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)
	=	(1684.582 / 9310.999)	/	(1527.209 / 8318.264)
	=	0.180924	/	0.183597
	=	0.9854

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)
	=	(220.486 / 8318.264)	/	(95.74 / 9310.999)
	=	0.026506	/	0.010282
	=	2.5779

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 - (4099.317 + 2171.022) / 36810.274)	/	(1 - (4345.156 + 2441.548) / 32639.867)
	=	0.829658	/	0.792073
	=	1.0475

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
	=	9310.999	/	8318.264
	=	1.1193

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))
	=	(371.675 / (371.675 + 2441.548))	/	(361.432 / (361.432 + 2171.022))
	=	0.132117	/	0.14272
	=	0.9257

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)
	=	(676.619 / 9310.999)	/	(971.176 / 8318.264)
	=	0.072669	/	0.116752
	=	0.6224

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)
	=	((1.019 + 5605.479) / 36810.274)	/	((2.304 + 2261.54) / 32639.867)
	=	0.152308	/	0.069358
	=	2.196

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
	=	(-1851.516 - 1980.804	-	61.737)	/	36810.274
	=	-0.105787

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.

Thai Rayon PCL has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.

Thai Rayon PCL Beneish M-Score Related Terms

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Thai Rayon PCL (BKK:TR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Thai Rayon PCL (BKK:TR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ploenchit Road, 16th Floor, 888/160-1 Mahatun Plaza Building, Lumpini, Pathumwan, Bangkok, THA, 10330

Website

https://www.thairayon.com

Thai Rayon PCL is a Thailand-based company principally engaged in the manufacture of viscose rayon staple fibre and anhydrous sodium sulphate for sales to both domestic and export markets. The company also produces Anhydrous Sodium Sulphate as its by-product, which is widely used in the Thai market by detergent, pulp, glass, leather, and textile industries. Thai Rayon has investments in backward and forward integration projects in Thailand, Indonesia, Laos, China, and Canada, as well as several diversification projects in Thailand and overseas.