Samvardhana Motherson International (BOM:517334) Beneish M-Score : -2.18 (As of Jun. 19, 2024)

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What is Samvardhana Motherson International 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 -2.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:517334' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24 Med: -2.52 Max: -2.02
Current: -2.18

During the past 13 years, the highest Beneish M-Score of Samvardhana Motherson International was -2.02. The lowest was -3.24. And the median was -2.52.

Samvardhana Motherson International Beneish M-Score Historical Data

The historical data trend for Samvardhana Motherson International'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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Samvardhana Motherson International Beneish M-Score Chart

Samvardhana Motherson International Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-3.24

-2.92

-2.24

-2.64

-2.18

Samvardhana Motherson International 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															-2.64	-	-	-	-2.18

Competitive Comparison of Samvardhana Motherson International's Beneish M-Score

For the Auto Parts subindustry, Samvardhana Motherson International'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.

Samvardhana Motherson International's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's Beneish M-Score distribution charts can be found below:

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

Samvardhana Motherson International 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 Samvardhana Motherson International 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 * 1.4604

0.528 * 0.9426

0.404 * 0.9345

0.892 * 1.2557

0.115 * 1.0378

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.057076

0.327 * 1.1039

-2.18

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹156,646 Mil.
Revenue was ₹977,794 Mil.
Gross Profit was ₹433,647 Mil.
Total Current Assets was ₹402,722 Mil.
Total Assets was ₹850,218 Mil.
Property, Plant and Equipment(Net PPE) was ₹240,842 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹38,105 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹417,204 Mil.
Long-Term Debt & Capital Lease Obligation was ₹119,053 Mil.
Net Income was ₹27,162 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹75,689 Mil.

Total Receivables was ₹85,424 Mil.
Revenue was ₹778,707 Mil.
Gross Profit was ₹325,533 Mil.
Total Current Assets was ₹267,792 Mil.
Total Assets was ₹618,517 Mil.
Property, Plant and Equipment(Net PPE) was ₹189,848 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹31,358 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹275,154 Mil.
Long-Term Debt & Capital Lease Obligation was ₹78,239 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)
	=	(156646.3 / 977794.1)	/	(85424.2 / 778706.5)
	=	0.160204	/	0.1097
	=	1.4604

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)
	=	(325532.9 / 778706.5)	/	(433647.1 / 977794.1)
	=	0.418043	/	0.443495
	=	0.9426

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 - (402722.2 + 240842.1) / 850217.5)	/	(1 - (267792.4 + 189847.9) / 618517.2)
	=	0.243059	/	0.260101
	=	0.9345

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
	=	977794.1	/	778706.5
	=	1.2557

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))
	=	(31358.4 / (31358.4 + 189847.9))	/	(38105 / (38105 + 240842.1))
	=	0.141761	/	0.136603
	=	1.0378

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)
	=	(0 / 977794.1)	/	(0 / 778706.5)
	=	0	/	0
	=	1

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)
	=	((119053.2 + 417204.4) / 850217.5)	/	((78239.3 + 275154.4) / 618517.2)
	=	0.63073	/	0.571356
	=	1.1039

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
	=	(27162 - 0	-	75689.2)	/	850217.5
	=	-0.057076

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.

Samvardhana Motherson International has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.

Samvardhana Motherson International Beneish M-Score Related Terms

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Samvardhana Motherson International (BOM:517334) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Samvardhana Motherson International Ltd (BOM:517334) » Definitions » Beneish M-Score

Traded in Other Exchanges

MOTHERSON:India

Address

Noida-Greater Noida Expressway, 11th Floor, Plot No. 1, Sector-127, Noida, UP, IND, 201301

Website

https://www.motherson.com

Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and waste recycling systems. The Company has Four reportable segments such as Wiring Harness, Modules and polymer products, Vision systems and Emerging businesses. The Company makes majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.

Samvardhana Motherson International (BOM:517334) Headlines

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