Optimus Finance (BOM:531254) Beneish M-Score : -1.19 (As of Jun. 08, 2024)

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What is Optimus Finance 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.

Warning Sign:

Beneish M-Score -1.19 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BOM:531254' s Beneish M-Score Range Over the Past 10 Years
Min: -2.45 Med: -1.4 Max: 23.3
Current: -1.19

During the past 13 years, the highest Beneish M-Score of Optimus Finance was 23.30. The lowest was -2.45. And the median was -1.40.

Optimus Finance Beneish M-Score Historical Data

The historical data trend for Optimus Finance'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.

Optimus Finance Beneish M-Score Chart

Optimus Finance Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.00

-2.45

-1.40

-1.59

-1.19

Optimus Finance 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															-1.59	-	-	-	-1.19

Competitive Comparison of Optimus Finance's Beneish M-Score

For the Chemicals subindustry, Optimus Finance'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.

Optimus Finance's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Optimus Finance's Beneish M-Score distribution charts can be found below:

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

Optimus Finance 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 Optimus Finance 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 * 1.1779

0.528 * 0.8061

0.404 * 1.3908

0.892 * 1.1448

0.115 * 0.9992

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * 0.147985

0.327 * 0.7509

-1.19

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹579 Mil.
Revenue was ₹1,096 Mil.
Gross Profit was ₹122 Mil.
Total Current Assets was ₹664 Mil.
Total Assets was ₹937 Mil.
Property, Plant and Equipment(Net PPE) was ₹71 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹14 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹110 Mil.
Long-Term Debt & Capital Lease Obligation was ₹149 Mil.
Net Income was ₹53 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-86 Mil.

Total Receivables was ₹430 Mil.
Revenue was ₹958 Mil.
Gross Profit was ₹86 Mil.
Total Current Assets was ₹648 Mil.
Total Assets was ₹845 Mil.
Property, Plant and Equipment(Net PPE) was ₹67 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹13 Mil.
Selling, General, & Admin. Expense(SGA) was ₹23 Mil.
Total Current Liabilities was ₹254 Mil.
Long-Term Debt & Capital Lease Obligation was ₹57 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)
	=	(579.242 / 1096.288)	/	(429.551 / 957.619)
	=	0.528367	/	0.448561
	=	1.1779

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)
	=	(85.633 / 957.619)	/	(121.614 / 1096.288)
	=	0.089423	/	0.110933
	=	0.8061

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 - (664.337 + 71.179) / 937.039)	/	(1 - (647.502 + 66.739) / 844.888)
	=	0.215064	/	0.154632
	=	1.3908

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
	=	1096.288	/	957.619
	=	1.1448

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))
	=	(12.695 / (12.695 + 66.739))	/	(13.553 / (13.553 + 71.179))
	=	0.159818	/	0.159951
	=	0.9992

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 / 1096.288)	/	(23.325 / 957.619)
	=	0	/	0.024357
	=	0

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)
	=	((149.28 + 109.93) / 937.039)	/	((57.407 + 253.858) / 844.888)
	=	0.276627	/	0.36841
	=	0.7509

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
	=	(52.551 - 0	-	-86.117)	/	937.039
	=	0.147985

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.

Optimus Finance has a M-score of -1.19 signals that the company is likely to be a manipulator.

Optimus Finance Beneish M-Score Related Terms

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Optimus Finance (BOM:531254) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Optimus Finance Ltd (BOM:531254) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Dr. Vikram Sarabhai Marg, 504 A, Ozone, Vadi-Wadi, Vadodara, GJ, IND, 390003

Website

https://www.optimusfinance.in

Optimus Finance Ltd is engaged in non-banking finance activity consisting of investment in shares and securities and other investment and financing activities. It is engaged in the business of loan and investment; importing and exporting lubricant oils, different types of base oils, and other chemical products used mainly in the automobile industry, power industry, and metal manufacturing among others. It operates through two business segments: Financing and Investing activity and Trading in Chemicals. It generates a majority of its revenues through trading in chemicals outside India.

Optimus Finance (BOM:531254) Headlines

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