Ledesma (BUE:LEDE) Beneish M-Score : -0.73 (As of Dec. 11, 2024)

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What is Ledesma 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 -0.73 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BUE:LEDE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.64 Med: -1.9 Max: -0.6
Current: -0.73

During the past 13 years, the highest Beneish M-Score of Ledesma was -0.60. The lowest was -3.64. And the median was -1.90.

Ledesma Beneish M-Score Historical Data

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

Ledesma Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

Beneish M-Score

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-2.24

-1.94

-1.13

-0.72

-3.31

Ledesma Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
Beneish M-Score	Get a 7-Day Free Trial															-1.02	-0.60	-1.22	-3.31	-0.73

Competitive Comparison of Ledesma's Beneish M-Score

For the Conglomerates subindustry, Ledesma'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.

Ledesma's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Ledesma's Beneish M-Score distribution charts can be found below:

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

Ledesma 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 Ledesma 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 * 2.8812

0.528 * 1.0364

0.404 * 0.8782

0.892 * 0.8921

0.115 * 3.7898

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7115

4.679 * -0.050281

0.327 * 0.9755

-0.73

This Year (Aug24) TTM:

Last Year (Aug23) TTM:

Total Receivables was ARS96,555 Mil.
Revenue was 153889.596 + 241524.996 + 143348.096 + 100803.923 = ARS639,567 Mil.
Gross Profit was 30138.105 + 48344.542 + 67385.685 + 50862.51 = ARS196,731 Mil.
Total Current Assets was ARS393,947 Mil.
Total Assets was ARS682,512 Mil.
Property, Plant and Equipment(Net PPE) was ARS261,620 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS24,324 Mil.
Selling, General, & Admin. Expense(SGA) was ARS99,822 Mil.
Total Current Liabilities was ARS269,120 Mil.
Long-Term Debt & Capital Lease Obligation was ARS16,384 Mil.
Net Income was -6230 + -29090.508 + 19463.736 + 25129.429 = ARS9,273 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was -72078.19 + 46787.61 + 59245.301 + 9635.447 = ARS43,590 Mil.

Total Receivables was ARS37,566 Mil.
Revenue was 233423.287 + 267824.622 + 134756.927 + 80920.607 = ARS716,925 Mil.
Gross Profit was 66615.559 + 83786.911 + 48885.198 + 29264.808 = ARS228,552 Mil.
Total Current Assets was ARS119,030 Mil.
Total Assets was ARS200,097 Mil.
Property, Plant and Equipment(Net PPE) was ARS72,071 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS34,290 Mil.
Selling, General, & Admin. Expense(SGA) was ARS157,258 Mil.
Total Current Liabilities was ARS75,595 Mil.
Long-Term Debt & Capital Lease Obligation was ARS10,209 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)
	=	(96554.716 / 639566.611)	/	(37565.808 / 716925.443)
	=	0.150969	/	0.052398
	=	2.8812

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)
	=	(228552.476 / 716925.443)	/	(196730.842 / 639566.611)
	=	0.318795	/	0.3076
	=	1.0364

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 - (393946.855 + 261619.574) / 682512.002)	/	(1 - (119029.928 + 72071.141) / 200097.126)
	=	0.03948	/	0.044958
	=	0.8782

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
	=	639566.611	/	716925.443
	=	0.8921

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))
	=	(34289.585 / (34289.585 + 72071.141))	/	(24324.297 / (24324.297 + 261619.574))
	=	0.32239	/	0.085067
	=	3.7898

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)
	=	(99821.667 / 639566.611)	/	(157257.723 / 716925.443)
	=	0.156077	/	0.21935
	=	0.7115

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)
	=	((16383.684 + 269119.67) / 682512.002)	/	((10208.721 + 75594.701) / 200097.126)
	=	0.418313	/	0.428809
	=	0.9755

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
	=	(9272.657 - 0	-	43590.168)	/	682512.002
	=	-0.050281

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.

Ledesma has a M-score of -0.73 signals that the company is likely to be a manipulator.

Ledesma Beneish M-Score Related Terms

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Ledesma Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Ledesma SA (BUE:LEDE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Avenida Corrientes 415, 8th Floor, Capital Federal, Buenos Aires, ARG

Website

http://www.ledesma.com.ar

Ledesma SA is engaged in the production of sugar, paper, alcohol, bioethanol, energy, natural juices, meat, syrups, corn starches and cereals. The company also produces notebooks and other school supplies. The geographical scope of the Ledesma Group's operations is mainly in the Argentine Republic. It mainly carry out activities mainly of sugar sugar mill, alcohol distillery both hydrated intended for traditional uses and anhydrous, for bio-fuels, manufacturing of paper and stationery, production of fruits and juices and Agriculture and Livestock. It is one of the main players in the local markets for the production and marketing of sugar, alcohol, reams of paper, notebooks, coated papers and school supplies, and is the main exporter of oranges and grapefruits in the country.

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