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Jio Financial Services (BOM:543940) Beneish M-Score : 45.51 (As of Dec. 12, 2024)


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What is Jio Financial Services 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 45.51 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BOM:543940' s Beneish M-Score Range Over the Past 10 Years
Min: -97.01   Med: -3.52   Max: 45.51
Current: 45.51

During the past 10 years, the highest Beneish M-Score of Jio Financial Services was 45.51. The lowest was -97.01. And the median was -3.52.


Jio Financial Services Beneish M-Score Historical Data

The historical data trend for Jio Financial Services'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.

Jio Financial Services Beneish M-Score Chart

Jio Financial Services 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 - -11.89 -1.68 -97.01 45.51

Jio Financial Services Quarterly Data
Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 45.51 - -

Competitive Comparison of Jio Financial Services's Beneish M-Score

For the Asset Management subindustry, Jio Financial Services'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.


Jio Financial Services's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Jio Financial Services's Beneish M-Score distribution charts can be found below:

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



Jio Financial Services 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 Jio Financial Services 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 * 0.0278+0.528 * 1.1088+0.404 * 1.032+0.892 * 55.243+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6721+4.679 * 0.015754-0.327 * 0.0779
=45.51

* 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 ₹4,724 Mil.
Revenue was ₹11,706 Mil.
Gross Profit was ₹10,557 Mil.
Total Current Assets was ₹171,022 Mil.
Total Assets was ₹1,448,630 Mil.
Property, Plant and Equipment(Net PPE) was ₹313 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹215 Mil.
Selling, General, & Admin. Expense(SGA) was ₹550 Mil.
Total Current Liabilities was ₹1,517 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 Mil.
Net Income was ₹16,046 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-6,776 Mil.
Total Receivables was ₹3,078 Mil.
Revenue was ₹212 Mil.
Gross Profit was ₹212 Mil.
Total Current Assets was ₹166,984 Mil.
Total Assets was ₹1,149,297 Mil.
Property, Plant and Equipment(Net PPE) was ₹396 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0 Mil.
Selling, General, & Admin. Expense(SGA) was ₹15 Mil.
Total Current Liabilities was ₹8,019 Mil.
Long-Term Debt & Capital Lease Obligation was ₹7,428 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)
=(4724.1 / 11706) / (3078.3 / 211.9)
=0.403562 / 14.527135
=0.0278

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)
=(211.9 / 211.9) / (10557.1 / 11706)
=1 / 0.901854
=1.1088

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 - (171021.5 + 312.7) / 1448629.9) / (1 - (166984.4 + 395.5) / 1149297.4)
=0.881727 / 0.854363
=1.032

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
=11706 / 211.9
=55.243

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 / (0 + 395.5)) / (215.2 / (215.2 + 312.7))
=0 / 0.407653
=1

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)
=(549.5 / 11706) / (14.8 / 211.9)
=0.046942 / 0.069844
=0.6721

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 + 1516.7) / 1448629.9) / ((7427.7 + 8018.8) / 1149297.4)
=0.001047 / 0.01344
=0.0779

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
=(16045.5 - 0 - -6775.7) / 1448629.9
=0.015754

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.

Jio Financial Services has a M-score of 45.51 signals that the company is likely to be a manipulator.


Jio Financial Services Beneish M-Score Related Terms

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Jio Financial Services Business Description

Traded in Other Exchanges
Address
1st floor Building 4NA, Maker Maxity, BKC, Bandra East, Mumbai, MH, IND, 400051
Jio Financial Services Ltd operates as an investment company. The Company is a registered Non-Banking Financial Company-Systemically Important Non-Deposit taking Company. The company is engaged in the business of finance, trading in futures and options, trading/investments in shares and securities in India.

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