Lanka IOC (COL:LIOC.N0000) Beneish M-Score : -1.37 (As of Jun. 16, 2024)

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What is Lanka IOC 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 -1.37 higher than -1.78, which implies that the company might have manipulated its financial results.

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

COL:LIOC.N0000' s Beneish M-Score Range Over the Past 10 Years
Min: -2.44 Med: -2.05 Max: -0.42
Current: -1.37

During the past 13 years, the highest Beneish M-Score of Lanka IOC was -0.42. The lowest was -2.44. And the median was -2.05.

Lanka IOC Beneish M-Score Historical Data

The historical data trend for Lanka IOC'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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Lanka IOC Beneish M-Score Chart

Lanka IOC Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.01

-2.44

-2.38

-0.69

-1.37

Lanka IOC Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-0.69	-0.73	-2.13	-2.15	-1.37

Competitive Comparison of Lanka IOC's Beneish M-Score

For the Oil & Gas Refining & Marketing subindustry, Lanka IOC'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.

Lanka IOC's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Lanka IOC's Beneish M-Score distribution charts can be found below:

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

Lanka IOC 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 Lanka IOC 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 * 2.1156

0.528 * 2.1123

0.404 * 0.8806

0.892 * 0.9363

0.115 * 1.2933

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2078

4.679 * -0.076423

0.327 * 1.1179

-1.37

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was රු8,979 Mil.
Revenue was 75101.378 + 72021.281 + 61699.583 + 54746.478 = රු263,569 Mil.
Gross Profit was 5751.595 + 5009.027 + 7792.713 + 5464.946 = රු24,018 Mil.
Total Current Assets was රු90,608 Mil.
Total Assets was රු101,795 Mil.
Property, Plant and Equipment(Net PPE) was රු4,947 Mil.
Depreciation, Depletion and Amortization(DDA) was රු428 Mil.
Selling, General, & Admin. Expense(SGA) was රු11,445 Mil.
Total Current Liabilities was රු28,221 Mil.
Long-Term Debt & Capital Lease Obligation was රු49 Mil.
Net Income was 3424.214 + 3015.45 + 5059.097 + 2446.234 = රු13,945 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = රු0 Mil.
Cash Flow from Operations was 9863.288 + -5984.741 + 13979.516 + 3866.469 = රු21,725 Mil.

Total Receivables was රු4,533 Mil.
Revenue was 68721.293 + 74872.18 + 87960.497 + 49933.631 = රු281,488 Mil.
Gross Profit was 10385.29 + 12013.165 + 16293.018 + 15490.458 = රු54,182 Mil.
Total Current Assets was රු72,538 Mil.
Total Assets was රු82,213 Mil.
Property, Plant and Equipment(Net PPE) was රු3,952 Mil.
Depreciation, Depletion and Amortization(DDA) was රු454 Mil.
Selling, General, & Admin. Expense(SGA) was රු10,121 Mil.
Total Current Liabilities was රු20,374 Mil.
Long-Term Debt & Capital Lease Obligation was රු50 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)
	=	(8979.373 / 263568.72)	/	(4532.854 / 281487.601)
	=	0.034068	/	0.016103
	=	2.1156

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)
	=	(54181.931 / 281487.601)	/	(24018.281 / 263568.72)
	=	0.192484	/	0.091127
	=	2.1123

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 - (90608.383 + 4946.613) / 101795.492)	/	(1 - (72537.684 + 3951.604) / 82212.627)
	=	0.061304	/	0.069616
	=	0.8806

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
	=	263568.72	/	281487.601
	=	0.9363

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))
	=	(453.796 / (453.796 + 3951.604))	/	(428.103 / (428.103 + 4946.613))
	=	0.103009	/	0.079651
	=	1.2933

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)
	=	(11445.177 / 263568.72)	/	(10120.556 / 281487.601)
	=	0.043424	/	0.035954
	=	1.2078

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)
	=	((48.669 + 28221.358) / 101795.492)	/	((49.539 + 20374.21) / 82212.627)
	=	0.277714	/	0.248426
	=	1.1179

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
	=	(13944.995 - 0	-	21724.532)	/	101795.492
	=	-0.076423

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.

Lanka IOC has a M-score of -1.37 signals that the company is likely to be a manipulator.

Lanka IOC Beneish M-Score Related Terms

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Lanka IOC (COL:LIOC.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Lanka IOC PLC (COL:LIOC.N0000) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

World Trade Center, Level 20, West Tower, Echelon Square, Colombo, LKA, 01

Website

https://www.lankaioc.com

Lanka IOC PLC is engaged in importing, blending, distributing, and selling of petroleum products. Its product offering is divided into five divisions namely Autofuel, Lubricants, Bitumen, Bunkering, and Petrochemicals. The Company is dealing only in the Petroleum products. Some of its products are Diesel, Petrol, IFO 180 cst, Marine Gas Oil, Bitumen 60/70, Bitumen 80/100 and others. The company gets revenue from Lanka Petrol 92 Octane, Lanka Auto Diesel, Xtramile, Lanka Super Diesel, Xtrapremium Euro 3, Xtrapremium 95, Lubricants, Bunkering, Bitumen and Petrochemical.

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