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CES (BOM:512341) Beneish M-Score : -2.20 (As of Oct. 31, 2024)


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What is CES 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 -2.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:512341' s Beneish M-Score Range Over the Past 10 Years
Min: -3.8   Med: -2.54   Max: 1.47
Current: -2.2

During the past 13 years, the highest Beneish M-Score of CES was 1.47. The lowest was -3.80. And the median was -2.54.


CES Beneish M-Score Historical Data

The historical data trend for CES'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.

CES Beneish M-Score Chart

CES Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.14 -3.52 -3.02 -2.54 -2.20

CES Semi-Annual Data
Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.14 -3.52 -3.02 -2.54 -2.20

Competitive Comparison of CES's Beneish M-Score

For the Information Technology Services subindustry, CES'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.


CES's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, CES's Beneish M-Score distribution charts can be found below:

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



CES 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 CES for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9608+0.528 * 0.9894+0.404 * 0.8692+0.892 * 1.0995+0.115 * 1.2713
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9273+4.679 * 0.040835-0.327 * 0.8396
=-2.20

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹908 Mil.
Revenue was ₹4,689 Mil.
Gross Profit was ₹2,502 Mil.
Total Current Assets was ₹2,710 Mil.
Total Assets was ₹3,422 Mil.
Property, Plant and Equipment(Net PPE) was ₹495 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹41 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,528 Mil.
Total Current Liabilities was ₹914 Mil.
Long-Term Debt & Capital Lease Obligation was ₹57 Mil.
Net Income was ₹265 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹125 Mil.
Total Receivables was ₹860 Mil.
Revenue was ₹4,265 Mil.
Gross Profit was ₹2,252 Mil.
Total Current Assets was ₹2,515 Mil.
Total Assets was ₹3,151 Mil.
Property, Plant and Equipment(Net PPE) was ₹407 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹44 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,499 Mil.
Total Current Liabilities was ₹1,015 Mil.
Long-Term Debt & Capital Lease Obligation was ₹50 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)
=(908.23 / 4688.66) / (859.766 / 4264.523)
=0.193708 / 0.201609
=0.9608

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)
=(2252.022 / 4264.523) / (2502.464 / 4688.66)
=0.528083 / 0.533727
=0.9894

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 - (2710.213 + 495.259) / 3421.684) / (1 - (2514.646 + 407.388) / 3151.112)
=0.063189 / 0.072698
=0.8692

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
=4688.66 / 4264.523
=1.0995

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))
=(44.156 / (44.156 + 407.388)) / (41.269 / (41.269 + 495.259))
=0.097789 / 0.076919
=1.2713

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)
=(1528.085 / 4688.66) / (1498.856 / 4264.523)
=0.325911 / 0.351471
=0.9273

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)
=((56.772 + 913.958) / 3421.684) / ((49.867 + 1014.914) / 3151.112)
=0.283699 / 0.337906
=0.8396

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
=(264.811 - 0 - 125.085) / 3421.684
=0.040835

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.

CES has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.


CES Business Description

Traded in Other Exchanges
N/A
Address
7th Floor, Tower-A, Ramky Selenium, Nanakramguda, Gachibowli, Hyderabad, TG, IND, 500032
CES Ltd together with its subsidiaries is an Information Technology and Information Technology Enabled Services provider, dedicated to serving the midsize market of global enterprises. The company provides services that are tailor-made to each customer. The company's services include product engineering, application lifecycle management, enterprise application, e-commerce support alternative asset management services. Its segments include IT Services and IT Enabled Services, which generate the majority of the company's revenue. Geographically the company generates revenue from the USA and India.

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