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PT Woori Finance Indonesia Tbk (ISX:BPFI) Beneish M-Score : -1.60 (As of Mar. 15, 2025)


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What is PT Woori Finance Indonesia Tbk Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -1.6 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for PT Woori Finance Indonesia Tbk's Beneish M-Score or its related term are showing as below:

ISX:BPFI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Med: -2.25   Max: -1.11
Current: -1.6

During the past 11 years, the highest Beneish M-Score of PT Woori Finance Indonesia Tbk was -1.11. The lowest was -3.85. And the median was -2.25.


PT Woori Finance Indonesia 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 Woori Finance Indonesia 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+0.528 * 1+0.404 * 1.0163+0.892 * 1.2212+0.115 * 0.9033
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.773+4.679 * 0.150069-0.327 * 1.1634
=-1.60

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was Rp0 Mil.
Revenue was 91379.787 + 80853.426 + 86497.408 + 86567.181 = Rp345,298 Mil.
Gross Profit was 91379.787 + 80853.426 + 86497.408 + 86567.181 = Rp345,298 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp1,976,038 Mil.
Property, Plant and Equipment(Net PPE) was Rp120,764 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp17,401 Mil.
Selling, General, & Admin. Expense(SGA) was Rp56,560 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp819,731 Mil.
Net Income was 20588.793 + 18683.507 + 22514.161 + 22478.522 = Rp84,265 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was -29276.165 + -2453.49 + -46565.918 + -133980.679 = Rp-212,276 Mil.
Total Receivables was Rp0 Mil.
Revenue was 85874.267 + 73531.121 + 74737.707 + 48620.92 = Rp282,764 Mil.
Gross Profit was 85874.267 + 73531.121 + 74737.707 + 48620.92 = Rp282,764 Mil.
Total Current Assets was Rp0 Mil.
Total Assets was Rp1,687,905 Mil.
Property, Plant and Equipment(Net PPE) was Rp128,495 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp16,494 Mil.
Selling, General, & Admin. Expense(SGA) was Rp59,915 Mil.
Total Current Liabilities was Rp0 Mil.
Long-Term Debt & Capital Lease Obligation was Rp601,852 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)
=(0 / 345297.802) / (0 / 282764.015)
=0 / 0
=1

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)
=(282764.015 / 282764.015) / (345297.802 / 345297.802)
=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 + 120763.815) / 1976037.632) / (1 - (0 + 128494.853) / 1687905.014)
=0.938886 / 0.923873
=1.0163

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
=345297.802 / 282764.015
=1.2212

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))
=(16494.346 / (16494.346 + 128494.853)) / (17400.972 / (17400.972 + 120763.815))
=0.113763 / 0.125944
=0.9033

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)
=(56559.603 / 345297.802) / (59914.998 / 282764.015)
=0.163799 / 0.21189
=0.773

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)
=((819730.723 + 0) / 1976037.632) / ((601852.024 + 0) / 1687905.014)
=0.414836 / 0.356567
=1.1634

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
=(84264.983 - 0 - -212276.252) / 1976037.632
=0.150069

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 Woori Finance Indonesia Tbk has a M-score of -1.60 signals that the company is likely to be a manipulator.


PT Woori Finance Indonesia Tbk Beneish M-Score Related Terms

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PT Woori Finance Indonesia Tbk Business Description

Traded in Other Exchanges
N/A
Address
Jl. Jend. Sudirman Kav. 21, Gedung Chase Plaza 16th Floor, Jakarta, IDN, 12920
PT Woori Finance Indonesia Tbk is a multi-finance company. The firm engages in the provision of consumer financing, financial leasing, and factoring services. It operates through the following segments: Finance Lease, Consumer Financing, and Factoring. It offers financing for used passenger and commercial automobiles. The majority of the firm's revenue comes from the Consumer Financing segment.