Centrais Eletricas Brasileiras (BSP:ELET6) Beneish M-Score

: -2.75 (As of Today)

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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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:ELET6' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1 Med: -2.42 Max: -0.28
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Centrais Eletricas Brasileiras was -0.28. The lowest was -3.10. And the median was -2.42.

Centrais Eletricas Brasileiras Beneish M-Score Historical Data

The historical data trend for Centrais Eletricas Brasileiras'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.

Centrais Eletricas Brasileiras Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-2.19

-2.07

-1.68

-2.80

-2.61

Centrais Eletricas Brasileiras Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score																-2.19	-2.61	-2.57	-2.77	-2.75

Competitive Comparison

For the Utilities - Renewable subindustry, Centrais Eletricas Brasileiras'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.

Centrais Eletricas Brasileiras Beneish M-Score Distribution

For the Utilities - Independent Power Producers industry and Utilities sector, Centrais Eletricas Brasileiras's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Centrais Eletricas Brasileiras's Beneish M-Score falls into.

Centrais Eletricas Brasileiras 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 Centrais Eletricas Brasileiras 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 * 1.159

0.528 * 0.9081

0.404 * 0.9189

0.892 * 1.0191

0.115 * 0.747

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9535

4.679 * -0.060895

0.327 * 1.1365

-2.75

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was R$22,184 Mil.
Revenue was 8781.43 + 9245.53 + 9209.833 + 9009.278 = R$36,246 Mil.
Gross Profit was 4065.1 + 4834.382 + 5194.858 + 17824.049 = R$31,918 Mil.
Total Current Assets was R$58,035 Mil.
Total Assets was R$276,807 Mil.
Property, Plant and Equipment(Net PPE) was R$38,782 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,602 Mil.
Selling, General, & Admin. Expense(SGA) was R$4,315 Mil.
Total Current Liabilities was R$30,912 Mil.
Long-Term Debt & Capital Lease Obligation was R$54,945 Mil.
Net Income was 995.596 + 2099.895 + 405.963 + -478.623 = R$3,023 Mil.
Non Operating Income was 1918.227 + 1301.73 + 497.369 + 2052.061 = R$5,769 Mil.
Cash Flow from Operations was 3129.311 + 2405.301 + 1101.845 + 7473.024 = R$14,109 Mil.

Total Receivables was R$18,782 Mil.
Revenue was 8047.09 + 8850.256 + 8167.609 + 10501.882 = R$35,567 Mil.
Gross Profit was 3556.275 + 5643.814 + 4964.099 + 14278.482 = R$28,443 Mil.
Total Current Assets was R$43,517 Mil.
Total Assets was R$266,506 Mil.
Property, Plant and Equipment(Net PPE) was R$34,398 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,332 Mil.
Selling, General, & Admin. Expense(SGA) was R$4,441 Mil.
Total Current Liabilities was R$24,699 Mil.
Long-Term Debt & Capital Lease Obligation was R$48,035 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)
	=	(22184.371 / 36246.071)	/	(18781.861 / 35566.837)
	=	0.612049	/	0.528072
	=	1.159

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)
	=	(28442.67 / 35566.837)	/	(31918.389 / 36246.071)
	=	0.799696	/	0.880603
	=	0.9081

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 - (58035.08 + 38781.711) / 276807.009)	/	(1 - (43516.712 + 34397.553) / 266506.129)
	=	0.650237	/	0.707646
	=	0.9189

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
	=	36246.071	/	35566.837
	=	1.0191

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))
	=	(2331.723 / (2331.723 + 34397.553))	/	(3601.904 / (3601.904 + 38781.711))
	=	0.063484	/	0.084983
	=	0.747

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)
	=	(4315.01 / 36246.071)	/	(4440.783 / 35566.837)
	=	0.119048	/	0.124857
	=	0.9535

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)
	=	((54944.754 + 30912.279) / 276807.009)	/	((48034.787 + 24699.356) / 266506.129)
	=	0.310169	/	0.272917
	=	1.1365

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
	=	(3022.831 - 5769.387	-	14109.481)	/	276807.009
	=	-0.060895

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.

Centrais Eletricas Brasileiras has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.

Centrais Eletricas Brasileiras Beneish M-Score Related Terms

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Centrais Eletricas Brasileiras (BSP:ELET6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Centrais Eletricas Brasileiras SA (BSP:ELET6) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

EBR.B:USA EBR:USA XELTO:Spain XELTB:Spain L3XB:Germany ELET5:Brazil ELET3:Brazil EBR:Argentina

Address

Rua da Quitanda 196, 9th floor, Centro, Rio de Janeiro, RJ, BRA, 20091-005

Website

https://www.eletrobras.com

Centrais Eletricas Brasileiras SA, or Eletrobras, is a mixed capital, Brazilian electric utility company of which the majority shareholder is the Government of Brazil. Eletrobras, through its subsidiaries, controls a sizable amount of total installed electricity generation, transmission, and distribution in Brazil. The company operates a portfolio of wind, thermal, hydro, and nuclear power plants located throughout the country. The vast majority of the total energy produced by Eletrobras comes from its hydroelectric facilities. The company primarily generates revenue from the administration segment. About half of Eletrobras' electricity sales are made using free market agreements, while the other half is completed through auctions and contracts.

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