PT Essa Industries Indonesia Tbk (ISX:ESSA) Beneish M-Score : -3.08 (As of Apr. 28, 2024)

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What is PT Essa Industries Indonesia Tbk 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.

Good Sign:

Beneish M-Score -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ISX:ESSA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08 Med: -2.03 Max: 0.81
Current: -3.08

During the past 13 years, the highest Beneish M-Score of PT Essa Industries Indonesia Tbk was 0.81. The lowest was -3.08. And the median was -2.03.

PT Essa Industries Indonesia Tbk Beneish M-Score Historical Data

The historical data trend for PT Essa Industries Indonesia Tbk'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.

* Premium members only.

PT Essa Industries Indonesia Tbk Beneish M-Score Chart

PT Essa Industries Indonesia Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.06

-2.65

0.81

-1.90

-3.08

PT Essa Industries Indonesia Tbk Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.90	-3.46	-3.43	-3.20	-3.08

Competitive Comparison of PT Essa Industries Indonesia Tbk's Beneish M-Score

For the Oil & Gas Refining & Marketing subindustry, PT Essa Industries Indonesia Tbk'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.

PT Essa Industries Indonesia Tbk's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, PT Essa Industries Indonesia Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Essa Industries Indonesia Tbk's Beneish M-Score falls into.

PT Essa Industries 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 Essa Industries Indonesia Tbk 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 * 1.257

0.528 * 1.5545

0.404 * 1.0171

0.892 * 0.4776

0.115 * 0.9586

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9438

4.679 * -0.165041

0.327 * 0.7176

-3.08

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was Rp584,682 Mil.
Revenue was 1731663.062 + 1000697.117 + 1207083.859 + 1323152.419 = Rp5,262,596 Mil.
Gross Profit was 844888.905 + 269934.993 + 188921.929 + 277306.672 = Rp1,581,052 Mil.
Total Current Assets was Rp2,756,996 Mil.
Total Assets was Rp10,720,929 Mil.
Property, Plant and Equipment(Net PPE) was Rp7,336,733 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp25,094 Mil.
Selling, General, & Admin. Expense(SGA) was Rp205,166 Mil.
Total Current Liabilities was Rp1,920,864 Mil.
Long-Term Debt & Capital Lease Obligation was Rp847,988 Mil.
Net Income was 383056.591 + 89880 + 12982.466 + 46888.038 = Rp532,807 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 583233.258 + 357175.573 + 314043.452 + 1047743.56 = Rp2,302,196 Mil.

Total Receivables was Rp973,844 Mil.
Revenue was 2744416.67 + 3142222.432 + 2849525.829 + 2281938.035 = Rp11,018,103 Mil.
Gross Profit was 1305611.095 + 1521375.523 + 1368689.411 + 949962.119 = Rp5,145,638 Mil.
Total Current Assets was Rp4,287,204 Mil.
Total Assets was Rp13,077,112 Mil.
Property, Plant and Equipment(Net PPE) was Rp8,037,745 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp26,353 Mil.
Selling, General, & Admin. Expense(SGA) was Rp455,126 Mil.
Total Current Liabilities was Rp1,915,990 Mil.
Long-Term Debt & Capital Lease Obligation was Rp2,790,682 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)
	=	(584682.361 / 5262596.457)	/	(973844.046 / 11018102.966)
	=	0.111102	/	0.088386
	=	1.257

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)
	=	(5145638.148 / 11018102.966)	/	(1581052.499 / 5262596.457)
	=	0.467017	/	0.300432
	=	1.5545

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 - (2756996.163 + 7336733.074) / 10720928.906)	/	(1 - (4287204.237 + 8037744.991) / 13077111.849)
	=	0.058502	/	0.057517
	=	1.0171

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
	=	5262596.457	/	11018102.966
	=	0.4776

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))
	=	(26352.798 / (26352.798 + 8037744.991))	/	(25094.204 / (25094.204 + 7336733.074))
	=	0.003268	/	0.003409
	=	0.9586

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)
	=	(205165.509 / 5262596.457)	/	(455125.883 / 11018102.966)
	=	0.038986	/	0.041307
	=	0.9438

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)
	=	((847987.519 + 1920863.542) / 10720928.906)	/	((2790681.578 + 1915990.102) / 13077111.849)
	=	0.258266	/	0.359917
	=	0.7176

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
	=	(532807.095 - 0	-	2302195.843)	/	10720928.906
	=	-0.165041

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 Essa Industries Indonesia Tbk has a M-score of -3.08 suggests that the company is unlikely to be a manipulator.

PT Essa Industries Indonesia Tbk Beneish M-Score Related Terms

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PT Essa Industries Indonesia Tbk (ISX:ESSA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » PT Essa Industries Indonesia Tbk (ISX:ESSA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan Prof. Dr. Satrio, Kav. 3-5, DBS Bank Tower, 18th Floor, Jakarta, IDN, 12940

Website

https://www.essa.id

PT Essa Industries Indonesia Tbk owns and operates the largest privately owned domestic liquefied petroleum gas (LPG) refinery in Indonesia. Its main business is the refining and processing of natural gas to produce LPG (mixture of Propane and Butane) and Condensate with a capacity of 190 TPD (Ton Per Day) LPG and 500 bpd (barrels per day) Condensate.