Grupo Supervielle 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 Grupo Supervielle for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 4.0632 | + | 0.528 * 1 | + | 0.404 * 0.9695 | + | 0.892 * 0.5962 | + | 0.115 * 2.1139 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.5683 | + | 4.679 * -0.056984 | - | 0.327 * 1.1092 |
| = | -0.13 |
* 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.
| This Year (Sep23) TTM: | Last Year (Sep22) TTM: |
Total Receivables was ARS248,919 Mil.
Revenue was 68796.412 + 49424.063 + 33766.134 + -32560.19 = ARS119,426 Mil.
Gross Profit was 68796.412 + 49424.063 + 33766.134 + -32560.19 = ARS119,426 Mil.
Total Current Assets was ARS349,277 Mil.
Total Assets was ARS1,291,688 Mil.
Property, Plant and Equipment(Net PPE) was ARS34,174 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS10,015 Mil.
Selling, General, & Admin. Expense(SGA) was ARS36,632 Mil.
Total Current Liabilities was ARS63,858 Mil.
Long-Term Debt & Capital Lease Obligation was ARS2,065 Mil.
Net Income was 9483.084 + 6259.515 + 557.461 + 2276.322 = ARS18,576 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was 54834.133 + 5991.27 + 5979.749 + 25376.636 = ARS92,182 Mil.
|
Total Receivables was ARS102,757 Mil.
Revenue was 58979.314 + 41853.626 + 33769.11 + 65716.441 = ARS200,318 Mil.
Gross Profit was 58979.314 + 41853.626 + 33769.11 + 65716.441 = ARS200,318 Mil.
Total Current Assets was ARS137,477 Mil.
Total Assets was ARS562,812 Mil.
Property, Plant and Equipment(Net PPE) was ARS17,143 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS15,768 Mil.
Selling, General, & Admin. Expense(SGA) was ARS108,120 Mil.
Total Current Liabilities was ARS23,986 Mil.
Long-Term Debt & Capital Lease Obligation was ARS1,910 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) |
| = | (248918.807 / 119426.419) | / | (102757.296 / 200318.491) |
| = | 2.084286 | / | 0.51297 |
| | = | 4.0632 |
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) |
| = | (200318.491 / 200318.491) | / | (119426.419 / 119426.419) |
| = | 1 | / | 1 |
| | = | 1 |
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 - (349276.502 + 34173.848) / 1291688.079) | / | (1 - (137476.607 + 17142.838) / 562812.49) |
| = | 0.70314 | / | 0.725274 |
| | = | 0.9695 |
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 |
| = | 119426.419 | / | 200318.491 |
| | = | 0.5962 |
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)) |
| = | (15767.889 / (15767.889 + 17142.838)) | / | (10015.113 / (10015.113 + 34173.848)) |
| = | 0.479111 | / | 0.226643 |
| | = | 2.1139 |
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) |
| = | (36632.077 / 119426.419) | / | (108120.381 / 200318.491) |
| = | 0.306733 | / | 0.539742 |
| | = | 0.5683 |
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) |
| = | ((2065.242 + 63857.516) / 1291688.079) | / | ((1910.367 + 23986.198) / 562812.49) |
| = | 0.051036 | / | 0.046013 |
| | = | 1.1092 |
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 |
| = | (18576.382 - 0 | - | 92181.788) | / | 1291688.079 |
| | = | -0.056984 |
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.
Grupo Supervielle has a M-score of -0.13 signals that the company is likely to be a manipulator.
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