Irani Papel E Embalagem (BSP:RANI3) Beneish M-Score : -1.90 (As of May. 12, 2024)

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What is Irani Papel E Embalagem 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 -1.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:RANI3' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28 Med: -2.65 Max: -1.9
Current: -1.9

During the past 13 years, the highest Beneish M-Score of Irani Papel E Embalagem was -1.90. The lowest was -3.28. And the median was -2.65.

Irani Papel E Embalagem Beneish M-Score Historical Data

The historical data trend for Irani Papel E Embalagem'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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Irani Papel E Embalagem Beneish M-Score Chart

Irani Papel E Embalagem Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-3.04

-3.03

-2.47

-2.44

-2.65

Irani Papel E Embalagem Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.65	-2.70	-2.39	-2.22	-1.90

Competitive Comparison of Irani Papel E Embalagem's Beneish M-Score

For the Packaging & Containers subindustry, Irani Papel E Embalagem'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.

Irani Papel E Embalagem's Beneish M-Score Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Irani Papel E Embalagem's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Irani Papel E Embalagem's Beneish M-Score falls into.

Irani Papel E Embalagem 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 Irani Papel E Embalagem 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 * 1.1003

0.528 * 1.0584

0.404 * 1.2232

0.892 * 0.9444

0.115 * 0.9487

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6072

4.679 * 0.06871

0.327 * 0.8898

-1.90

This Year (Mar24) TTM:

Last Year (Dec22) TTM:

Total Receivables was R$269 Mil.
Revenue was 383.601 + 407.855 + 394.47 + 406.884 = R$1,593 Mil.
Gross Profit was 156.014 + 190.545 + 179.77 + 194.692 = R$721 Mil.
Total Current Assets was R$1,151 Mil.
Total Assets was R$3,481 Mil.
Property, Plant and Equipment(Net PPE) was R$1,626 Mil.
Depreciation, Depletion and Amortization(DDA) was R$124 Mil.
Selling, General, & Admin. Expense(SGA) was R$131 Mil.
Total Current Liabilities was R$310 Mil.
Long-Term Debt & Capital Lease Obligation was R$1,548 Mil.
Net Income was 40.639 + 64.635 + 228.746 + 82.958 = R$417 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 45.163 + 10.59 + 118.088 + 3.988 = R$178 Mil.

Total Receivables was R$258 Mil.
Revenue was 408.41 + 441.405 + 428.907 + 407.944 = R$1,687 Mil.
Gross Profit was 192.773 + 207.191 + 207.162 + 200.946 = R$808 Mil.
Total Current Assets was R$1,505 Mil.
Total Assets was R$3,515 Mil.
Property, Plant and Equipment(Net PPE) was R$1,430 Mil.
Depreciation, Depletion and Amortization(DDA) was R$103 Mil.
Selling, General, & Admin. Expense(SGA) was R$228 Mil.
Total Current Liabilities was R$577 Mil.
Long-Term Debt & Capital Lease Obligation was R$1,532 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)
	=	(268.579 / 1592.81)	/	(258.472 / 1686.666)
	=	0.16862	/	0.153244
	=	1.1003

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)
	=	(808.072 / 1686.666)	/	(721.021 / 1592.81)
	=	0.479094	/	0.452672
	=	1.0584

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 - (1151.281 + 1626.356) / 3480.534)	/	(1 - (1505.181 + 1429.789) / 3515.338)
	=	0.201951	/	0.165096
	=	1.2232

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
	=	1592.81	/	1686.666
	=	0.9444

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))
	=	(103.028 / (103.028 + 1429.789))	/	(124.012 / (124.012 + 1626.356))
	=	0.067215	/	0.070849
	=	0.9487

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)
	=	(130.656 / 1592.81)	/	(227.844 / 1686.666)
	=	0.082029	/	0.135085
	=	0.6072

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)
	=	((1548.399 + 310.288) / 3480.534)	/	((1532.242 + 577.46) / 3515.338)
	=	0.534024	/	0.600142
	=	0.8898

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
	=	(416.978 - 0	-	177.829)	/	3480.534
	=	0.06871

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.

Irani Papel E Embalagem has a M-score of -1.90 suggests that the company is unlikely to be a manipulator.

Irani Papel E Embalagem Beneish M-Score Related Terms

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Irani Papel E Embalagem (BSP:RANI3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Irani Papel E Embalagem SA (BSP:RANI3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua General Joao Manoel, 157, 9th Floor, Room 903, Porto Alegre, RS, BRA, 90010-030

Website

http://www.irani.com.br

Irani Papel E Embalagem SA is a paper packaging company. The company's reportable segments include corrugated cardboard (PO) packaging segment manufactures light and heavy corrugated cardboard boxes and sheets. Its packaging paper segment produces low and high-weight Kraft paper and recycled paper for the domestic and foreign markets. The RS forest and resins segment plants pine trees for their own consumption. It generates maximum revenue from the corrugated cardboard (PO) packaging segment.

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