PT Asuransi Ramayana Tbk 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 PT Asuransi Ramayana Tbk 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 * 1.0985 | + | 0.528 * 1 | + | 0.404 * 0.9967 | + | 0.892 * 0.9791 | + | 0.115 * 0.4241 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1627 | + | 4.679 * 0.067446 | - | 0.327 * 2.3682 |
| = | -2.64 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was Rp692,565 Mil.
Revenue was 560331.352 + 480384.639 + 415955.497 + 569149.779 = Rp2,025,821 Mil.
Gross Profit was 560331.352 + 480384.639 + 415955.497 + 569149.779 = Rp2,025,821 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp1,827,471 Mil.
Property, Plant and Equipment(Net PPE) was Rp93,923 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp52,728 Mil.
Selling, General, & Admin. Expense(SGA) was Rp187,758 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp11,013 Mil.
Net Income was 22579.862 + 34698.798 + 5186.255 + 15738.969 = Rp78,204 Mil.
Non Operating Income was -1334.732 + -2652.722 + -344.852 + -398.203 = Rp-4,731 Mil.
Cash Flow from Operations was 2385.021 + -67366.176 + 1624.781 + 23034.669 = Rp-40,322 Mil.
|
Total Receivables was Rp643,910 Mil.
Revenue was 556701.052 + 487143.236 + 470660.039 + 554555.531 = Rp2,069,060 Mil.
Gross Profit was 556701.052 + 487143.236 + 470660.039 + 554555.531 = Rp2,069,060 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp1,778,879 Mil.
Property, Plant and Equipment(Net PPE) was Rp85,808 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp15,439 Mil.
Selling, General, & Admin. Expense(SGA) was Rp164,931 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp4,528 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) |
| = | (692564.97 / 2025821.267) | / | (643909.859 / 2069059.858) |
| = | 0.341869 | / | 0.311209 |
| | = | 1.0985 |
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) |
| = | (2069059.858 / 2069059.858) | / | (2025821.267 / 2025821.267) |
| = | 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 - (0 + 93922.855) / 1827470.533) | / | (1 - (0 + 85808.021) / 1778879.014) |
| = | 0.948605 | / | 0.951763 |
| | = | 0.9967 |
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 |
| = | 2025821.267 | / | 2069059.858 |
| | = | 0.9791 |
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)) |
| = | (15439.328 / (15439.328 + 85808.021)) | / | (52728.439 / (52728.439 + 93922.855)) |
| = | 0.152491 | / | 0.35955 |
| | = | 0.4241 |
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) |
| = | (187757.974 / 2025821.267) | / | (164931.467 / 2069059.858) |
| = | 0.092682 | / | 0.079713 |
| | = | 1.1627 |
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) |
| = | ((11013.269 + 0) / 1827470.533) | / | ((4528.054 + 0) / 1778879.014) |
| = | 0.006027 | / | 0.002545 |
| | = | 2.3682 |
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 |
| = | (78203.884 - -4730.509 | - | -40321.705) | / | 1827470.533 |
| | = | 0.067446 |
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.
PT Asuransi Ramayana Tbk has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.
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