Raizen (BSP:RAIZ4) Beneish M-Score : -2.83 (As of Apr. 08, 2025)

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What is Raizen 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:RAIZ4' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -2.77 Max: -1.44
Current: -2.83

During the past 11 years, the highest Beneish M-Score of Raizen was -1.44. The lowest was -3.14. And the median was -2.77.

Raizen Beneish M-Score Historical Data

The historical data trend for Raizen'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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Raizen Beneish M-Score Chart

Raizen Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-3.03

-2.46

-2.25

-2.64

-1.67

Raizen Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.94	-1.67	-2.91	-2.97	-2.83

Competitive Comparison of Raizen's Beneish M-Score

For the Utilities - Renewable subindustry, Raizen'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.

Raizen's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

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

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

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Raizen 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 Raizen 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 * 0.7526

0.528 * 1.5608

0.404 * 1.13

0.892 * 1.133

0.115 * 0.8975

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9991

4.679 * -0.119699

0.327 * 1.0618

-2.83

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was R$13,939 Mil.
Revenue was 66872.368 + 72909.908 + 57759.456 + 53684.625 = R$251,226 Mil.
Gross Profit was 2910.357 + 4372.47 + 2648.878 + 3791.216 = R$13,723 Mil.
Total Current Assets was R$66,341 Mil.
Total Assets was R$143,846 Mil.
Property, Plant and Equipment(Net PPE) was R$41,750 Mil.
Depreciation, Depletion and Amortization(DDA) was R$9,908 Mil.
Selling, General, & Admin. Expense(SGA) was R$9,660 Mil.
Total Current Liabilities was R$58,265 Mil.
Long-Term Debt & Capital Lease Obligation was R$49,725 Mil.
Net Income was -2590.476 + -181.581 + 1050.454 + -877.212 = R$-2,599 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 3254.8 + 193.642 + -7848.797 + 19019.863 = R$14,620 Mil.

Total Receivables was R$16,347 Mil.
Revenue was 58491.707 + 59455.906 + 48822.001 + 54967.309 = R$221,737 Mil.
Gross Profit was 4534.868 + 4588.735 + 2808.778 + 6972.353 = R$18,905 Mil.
Total Current Assets was R$59,815 Mil.
Total Assets was R$125,521 Mil.
Property, Plant and Equipment(Net PPE) was R$38,095 Mil.
Depreciation, Depletion and Amortization(DDA) was R$7,921 Mil.
Selling, General, & Admin. Expense(SGA) was R$8,534 Mil.
Total Current Liabilities was R$55,856 Mil.
Long-Term Debt & Capital Lease Obligation was R$32,895 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)
	=	(13939.344 / 251226.357)	/	(16346.844 / 221736.923)
	=	0.055485	/	0.073722
	=	0.7526

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)
	=	(18904.734 / 221736.923)	/	(13722.921 / 251226.357)
	=	0.085257	/	0.054624
	=	1.5608

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 - (66341.421 + 41750.008) / 143846.433)	/	(1 - (59815.001 + 38094.95) / 125520.596)
	=	0.248564	/	0.219969
	=	1.13

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
	=	251226.357	/	221736.923
	=	1.133

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))
	=	(7921.186 / (7921.186 + 38094.95))	/	(9907.966 / (9907.966 + 41750.008))
	=	0.172139	/	0.191799
	=	0.8975

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)
	=	(9659.665 / 251226.357)	/	(8533.553 / 221736.923)
	=	0.03845	/	0.038485
	=	0.9991

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)
	=	((49725.353 + 58264.973) / 143846.433)	/	((32895.451 + 55855.884) / 125520.596)
	=	0.750733	/	0.707066
	=	1.0618

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
	=	(-2598.815 - 0	-	14619.508)	/	143846.433
	=	-0.119699

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.

Raizen has a M-score of -2.83 suggests that the company is unlikely to be a manipulator.

Raizen Beneish M-Score Related Terms

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Raizen Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Raizen SA (BSP:RAIZ4) » Definitions » Beneish M-Score

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Address

Avenida Afonso Arinos de Melo Franco, 222, Apartment building 2, room 321, Barra da Tijuca, Rio de Janeiro, RJ, BRA

Website

https://www.raizen.com.br

Raizen SA is an integrated energy company. Its operating model involves the production and sale of renewable energy and sugar from sugarcane to the delivery of this energy to different parts of the world. The Company's main activities are the distribution and sale of fossil and renewable fuels, the production and sale of automotive and industrial lubricants, oil refining, and operations related to convenience stores. The company operates in three reportable segments Mobility, Sugar and Renewables. The Marketing and Services segment refers to the trading and sale activities of fossil and renewable fuels and lubricants, through a franchised network of service stations under the Shell brand in all the national territory and Latin America, operating in Argentina and Paraguay.

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