PT Krakatau Steel (Persero) Tbk (ISX:KRAS) Beneish M-Score : -3.23 (As of Dec. 12, 2024)

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What is PT Krakatau Steel (Persero) 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 -3.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PT Krakatau Steel (Persero) Tbk's Beneish M-Score or its related term are showing as below:

ISX:KRAS' s Beneish M-Score Range Over the Past 10 Years
Min: -8.94 Med: -2.8 Max: -0.4
Current: -3.23

During the past 13 years, the highest Beneish M-Score of PT Krakatau Steel (Persero) Tbk was -0.40. The lowest was -8.94. And the median was -2.80.

PT Krakatau Steel (Persero) Tbk Beneish M-Score Historical Data

The historical data trend for PT Krakatau Steel (Persero) 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 Krakatau Steel (Persero) Tbk Beneish M-Score Chart

PT Krakatau Steel (Persero) Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.59

-2.73

-2.13

-2.45

-3.23

PT Krakatau Steel (Persero) Tbk Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-3.56	-3.23	-3.49	-2.99	-3.23

Competitive Comparison of PT Krakatau Steel (Persero) Tbk's Beneish M-Score

For the Steel subindustry, PT Krakatau Steel (Persero) 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 Krakatau Steel (Persero) Tbk's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, PT Krakatau Steel (Persero) Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Krakatau Steel (Persero) Tbk's Beneish M-Score falls into.

PT Krakatau Steel (Persero) 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 Krakatau Steel (Persero) 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 * 1.4095

0.528 * 0.8555

0.404 * 1.2112

0.892 * 0.5154

0.115 * 0.5843

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.3238

4.679 * -0.084136

0.327 * 1.1013

-3.23

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was Rp2,546,075 Mil.
Revenue was 3281247.832 + 3281756.56 + 3573319.233 + 2937502.023 = Rp13,073,826 Mil.
Gross Profit was 247519.181 + 436133.854 + 307410.314 + 94268.796 = Rp1,085,332 Mil.
Total Current Assets was Rp8,852,125 Mil.
Total Assets was Rp42,458,358 Mil.
Property, Plant and Equipment(Net PPE) was Rp21,655,477 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp181,015 Mil.
Selling, General, & Admin. Expense(SGA) was Rp836,672 Mil.
Total Current Liabilities was Rp33,720,758 Mil.
Long-Term Debt & Capital Lease Obligation was Rp841,189 Mil.
Net Income was -1866398.839 + -539744.742 + -449268.28 + -1060635.725 = Rp-3,916,048 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 298499.87 + 281696.438 + -317214.885 + -606758.063 = Rp-343,777 Mil.

Total Receivables was Rp3,505,056 Mil.
Revenue was 4328430.741 + 4429680.562 + 10390256.687 + 6219869.212 = Rp25,368,237 Mil.
Gross Profit was 446155.064 + 384891.054 + 789866.882 + 180733.6 = Rp1,801,647 Mil.
Total Current Assets was Rp11,272,200 Mil.
Total Assets was Rp45,381,062 Mil.
Property, Plant and Equipment(Net PPE) was Rp23,562,735 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp114,691 Mil.
Selling, General, & Admin. Expense(SGA) was Rp698,625 Mil.
Total Current Liabilities was Rp32,438,109 Mil.
Long-Term Debt & Capital Lease Obligation was Rp1,105,311 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)
	=	(2546074.549 / 13073825.648)	/	(3505056.041 / 25368237.202)
	=	0.194746	/	0.138167
	=	1.4095

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)
	=	(1801646.6 / 25368237.202)	/	(1085332.145 / 13073825.648)
	=	0.07102	/	0.083016
	=	0.8555

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 - (8852125.172 + 21655477.225) / 42458357.549)	/	(1 - (11272200.236 + 23562735.122) / 45381062.32)
	=	0.28147	/	0.23239
	=	1.2112

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
	=	13073825.648	/	25368237.202
	=	0.5154

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))
	=	(114691.226 / (114691.226 + 23562735.122))	/	(181014.589 / (181014.589 + 21655477.225))
	=	0.004844	/	0.00829
	=	0.5843

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)
	=	(836672.18 / 13073825.648)	/	(698624.546 / 25368237.202)
	=	0.063996	/	0.027539
	=	2.3238

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)
	=	((841189.066 + 33720757.789) / 42458357.549)	/	((1105311.288 + 32438109.492) / 45381062.32)
	=	0.81402	/	0.73915
	=	1.1013

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
	=	(-3916047.586 - 0	-	-343776.64)	/	42458357.549
	=	-0.084136

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 Krakatau Steel (Persero) Tbk has a M-score of -3.23 suggests that the company is unlikely to be a manipulator.

PT Krakatau Steel (Persero) Tbk Beneish M-Score Related Terms

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PT Krakatau Steel (Persero) Tbk Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » PT Krakatau Steel (Persero) Tbk (ISX:KRAS) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Jl. Asia Raya, Technology Buliding, Plant Site Krakatau Steel, Cilegon, IDN, 42435

Website

https://www.krakatausteel.com

PT Krakatau Steel (Persero) Tbk is a steel producer in Indonesia. The company's products include Hot Rolled Coil, Cold Rolled Coil, and Wire Rod. Along with its subsidiaries, the company produces steel products with specific requirements, including Spiral Pipe, Electrical Resistance Welding Pipe, Reinforcing Bars, and Section Steel, particularly for national defense infrastructure in Indonesia. Apart from steel products, it also offers some other services and side products. It operates in five segments: Steel Products; Infrastructure facilities segment; Engineering and Construction; and Other Services. It derives the majority of its revenue from the Steel Products segment.

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