S.M. Gold (BOM:542034) Beneish M-Score : -3.33 (As of Oct. 31, 2024)

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What is S.M. Gold 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 -3.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BOM:542034' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33 Med: -1.17 Max: 9.33
Current: -3.33

During the past 10 years, the highest Beneish M-Score of S.M. Gold was 9.33. The lowest was -3.33. And the median was -1.17.

S.M. Gold Beneish M-Score Historical Data

The historical data trend for S.M. Gold'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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S.M. Gold Beneish M-Score Chart

S.M. Gold Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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9.33

-2.84

-2.27

0.86

-3.33

S.M. Gold Quarterly Data
	Sep18	Mar19	Sep19	Mar20	Jun20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-3.33	-

Competitive Comparison of S.M. Gold's Beneish M-Score

For the Luxury Goods subindustry, S.M. Gold'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.

S.M. Gold's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, S.M. Gold's Beneish M-Score distribution charts can be found below:

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

S.M. Gold 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 S.M. Gold 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 * 0.1809

0.528 * 0.8404

0.404 * 2.7233

0.892 * 1.2223

0.115 * 0.7157

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5082

4.679 * -0.209003

0.327 * 0.9427

-3.33

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹1.3 Mil.
Revenue was ₹622.5 Mil.
Gross Profit was ₹30.3 Mil.
Total Current Assets was ₹339.0 Mil.
Total Assets was ₹401.2 Mil.
Property, Plant and Equipment(Net PPE) was ₹0.8 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0.3 Mil.
Selling, General, & Admin. Expense(SGA) was ₹3.5 Mil.
Total Current Liabilities was ₹174.5 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.
Net Income was ₹11.9 Mil.
Gross Profit was ₹0.0 Mil.
Cash Flow from Operations was ₹95.8 Mil.

Total Receivables was ₹6.1 Mil.
Revenue was ₹509.3 Mil.
Gross Profit was ₹20.8 Mil.
Total Current Assets was ₹282.3 Mil.
Total Assets was ₹300.1 Mil.
Property, Plant and Equipment(Net PPE) was ₹0.9 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0.3 Mil.
Selling, General, & Admin. Expense(SGA) was ₹5.7 Mil.
Total Current Liabilities was ₹138.5 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.0 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)
	=	(1.346 / 622.513)	/	(6.087 / 509.306)
	=	0.002162	/	0.011952
	=	0.1809

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)
	=	(20.817 / 509.306)	/	(30.275 / 622.513)
	=	0.040873	/	0.048634
	=	0.8404

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 - (338.962 + 0.755) / 401.177)	/	(1 - (282.273 + 0.932) / 300.086)
	=	0.153199	/	0.056254
	=	2.7233

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
	=	622.513	/	509.306
	=	1.2223

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))
	=	(0.253 / (0.253 + 0.932))	/	(0.321 / (0.321 + 0.755))
	=	0.213502	/	0.298327
	=	0.7157

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)
	=	(3.543 / 622.513)	/	(5.703 / 509.306)
	=	0.005691	/	0.011198
	=	0.5082

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)
	=	((0 + 174.54) / 401.177)	/	((0 + 138.496) / 300.086)
	=	0.43507	/	0.461521
	=	0.9427

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
	=	(11.913 - 0	-	95.76)	/	401.177
	=	-0.209003

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.

S.M. Gold has a M-score of -3.33 suggests that the company is unlikely to be a manipulator.

S.M. Gold Beneish M-Score Related Terms

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S.M. Gold Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » S.M. Gold Ltd (BOM:542034) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Shop No. 1 to 3, 2nd Floor 24 Caret Building, Opp. Rock Regency Hotel, Law Garden, C G Road, Ahmedabad, GJ, IND, 380009

Website

https://www.smgoldltd.com

S.M. Gold Ltd is involved in the business of manufacturing and wholesale trading of mangalsutra jewellery. Besides mangalsutra jewellery, a minor part of the company's business also includes other jewellery's like Rings, Chain, Earrings, Ear Chain, Nose-rings/Nose pins, waist belts, Anklet, Zuda, Toe Ring, Pendant Set/Pendant, Bracelet and Bangles, wedding Jewellery, and festive Jewellery. The products are sold under the brand name of S. M. Gold - the House of Mangalsutra. Geographically, all the activities are carried out throughout the region of India.

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