UCM Resita (BSE:UCM) Beneish M-Score : -5.02 (As of Jan. 18, 2025)

View and export this data going back to 1997. Start your Free Trial

What is UCM Resita 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 -5.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSE:UCM' s Beneish M-Score Range Over the Past 10 Years
Min: -176.47 Med: -2.79 Max: 7.16
Current: -5.02

During the past 13 years, the highest Beneish M-Score of UCM Resita was 7.16. The lowest was -176.47. And the median was -2.79.

UCM Resita Beneish M-Score Historical Data

The historical data trend for UCM Resita'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.

UCM Resita Beneish M-Score Chart

UCM Resita Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-9.82

-2.64

-14.25

7.16

-4.29

UCM Resita Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-4.14	-4.29	-2.49	-2.78	-5.02

Competitive Comparison of UCM Resita's Beneish M-Score

For the Specialty Industrial Machinery subindustry, UCM Resita'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.

UCM Resita's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, UCM Resita's Beneish M-Score distribution charts can be found below:

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

UCM Resita 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 UCM Resita 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 * 0.3563

0.528 * -2.5313

0.404 * 0.9091

0.892 * 0.3419

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8581

4.679 * 0.106314

0.327 * 0.9319

-5.02

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was lei0.68 Mil.
Revenue was 0.266 + 1.207 + 3.701 + 7.994 = lei13.17 Mil.
Gross Profit was 0.118 + 1.023 + -1.934 + -0.017 = lei-0.81 Mil.
Total Current Assets was lei99.58 Mil.
Total Assets was lei151.81 Mil.
Property, Plant and Equipment(Net PPE) was lei48.55 Mil.
Depreciation, Depletion and Amortization(DDA) was lei0.00 Mil.
Selling, General, & Admin. Expense(SGA) was lei3.60 Mil.
Total Current Liabilities was lei422.62 Mil.
Long-Term Debt & Capital Lease Obligation was lei0.00 Mil.
Net Income was -1.17 + 0.403 + 20.847 + -7.507 = lei12.57 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = lei0.00 Mil.
Cash Flow from Operations was -0.073 + 2.561 + -5.308 + -0.746 = lei-3.57 Mil.

Total Receivables was lei5.56 Mil.
Revenue was 15.638 + 9.771 + 4.578 + 8.528 = lei38.52 Mil.
Gross Profit was 5.224 + 1.748 + -2.395 + 1.42 = lei6.00 Mil.
Total Current Assets was lei101.23 Mil.
Total Assets was lei156.39 Mil.
Property, Plant and Equipment(Net PPE) was lei51.00 Mil.
Depreciation, Depletion and Amortization(DDA) was lei0.00 Mil.
Selling, General, & Admin. Expense(SGA) was lei12.28 Mil.
Total Current Liabilities was lei467.19 Mil.
Long-Term Debt & Capital Lease Obligation was lei0.00 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)
	=	(0.677 / 13.168)	/	(5.558 / 38.515)
	=	0.051413	/	0.144307
	=	0.3563

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)
	=	(5.997 / 38.515)	/	(-0.81 / 13.168)
	=	0.155706	/	-0.061513
	=	-2.5313

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 - (99.583 + 48.554) / 151.805)	/	(1 - (101.234 + 51.002) / 156.393)
	=	0.024163	/	0.02658
	=	0.9091

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
	=	13.168	/	38.515
	=	0.3419

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 + 51.002))	/	(0 / (0 + 48.554))
	=	0	/	0
	=	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)
	=	(3.602 / 13.168)	/	(12.278 / 38.515)
	=	0.273542	/	0.318785
	=	0.8581

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 + 422.617) / 151.805)	/	((0 + 467.189) / 156.393)
	=	2.783947	/	2.987276
	=	0.9319

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
	=	(12.573 - 0	-	-3.566)	/	151.805
	=	0.106314

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.

UCM Resita has a M-score of -5.02 suggests that the company is unlikely to be a manipulator.

UCM Resita Beneish M-Score Related Terms

Thank you for viewing the detailed overview of UCM Resita's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

UCM Resita Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » UCM Resita SA (BSE:UCM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Golului Street No. 1, Caras-Severin County, Resita, ROU, 320053

Website

http://www.ucmr.ro

UCM Resita SA is engaged in the manufacturing of engines and turbines. The company manufactures hydropower units and hydro-mechanical equipment, hydraulic servomotors, spare parts for diesel engines, welded assemblies, welded metal structures, bearings and half-bearing shells, and others. The company markets its products in Romania and the European Union.

UCM Resita Headlines

No Headlines