PT Merdeka Battery Materials Tbk (ISX:MBMA) Beneish M-Score : 0.83 (As of Jun. 10, 2024)

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What is PT Merdeka Battery Materials 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.

Warning Sign:

Beneish M-Score 0.83 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for PT Merdeka Battery Materials Tbk's Beneish M-Score or its related term are showing as below:

ISX:MBMA' s Beneish M-Score Range Over the Past 10 Years
Min: 0.83 Med: 0.83 Max: 0.83
Current: 0.83

During the past 5 years, the highest Beneish M-Score of PT Merdeka Battery Materials Tbk was 0.83. The lowest was 0.83. And the median was 0.83.

PT Merdeka Battery Materials Tbk Beneish M-Score Historical Data

The historical data trend for PT Merdeka Battery Materials 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.

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PT Merdeka Battery Materials Tbk Beneish M-Score Chart

PT Merdeka Battery Materials Tbk Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

PT Merdeka Battery Materials Tbk Quarterly Data
	Dec20	Sep21	Dec21	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial				-	-	-	-	0.83

Competitive Comparison of PT Merdeka Battery Materials Tbk's Beneish M-Score

For the Other Precious Metals & Mining subindustry, PT Merdeka Battery Materials 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 Merdeka Battery Materials Tbk's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, PT Merdeka Battery Materials Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Merdeka Battery Materials Tbk's Beneish M-Score falls into.

PT Merdeka Battery Materials 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 Merdeka Battery Materials 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 * 0.3335

0.528 * 1.7975

0.404 * 0.6296

0.892 * 6.1179

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 6.5859

4.679 * -0.00256

0.327 * 0.8232

0.83

This Year (Mar24) TTM:

Last Year (Dec22) TTM:

Total Receivables was Rp2,167,982 Mil.
Revenue was 6848138.596 + 7006013.779 + 0 + 2149815.792 = Rp16,003,968 Mil.
Gross Profit was 275422.128 + 247704.173 + 0 + 178273.954 = Rp701,400 Mil.
Total Current Assets was Rp13,617,440 Mil.
Total Assets was Rp50,912,195 Mil.
Property, Plant and Equipment(Net PPE) was Rp30,659,820 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp8,252 Mil.
Selling, General, & Admin. Expense(SGA) was Rp229,346 Mil.
Total Current Liabilities was Rp5,965,033 Mil.
Long-Term Debt & Capital Lease Obligation was Rp7,186,427 Mil.
Net Income was 56530.446 + 96380.787 + 0 + -105539.506 = Rp47,372 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 590201.287 + 0 + 0 + -412503.276 = Rp177,698 Mil.

Total Receivables was Rp1,062,583 Mil.
Revenue was 2615925.762 + 0 + 0 + 0 = Rp2,615,926 Mil.
Gross Profit was 206076.261 + 0 + 0 + 0 = Rp206,076 Mil.
Total Current Assets was Rp7,379,858 Mil.
Total Assets was Rp38,093,716 Mil.
Property, Plant and Equipment(Net PPE) was Rp22,828,719 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp0 Mil.
Selling, General, & Admin. Expense(SGA) was Rp5,692 Mil.
Total Current Liabilities was Rp2,586,776 Mil.
Long-Term Debt & Capital Lease Obligation was Rp9,367,236 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)
	=	(2167981.908 / 16003968.167)	/	(1062582.686 / 2615925.762)
	=	0.135465	/	0.406198
	=	0.3335

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)
	=	(206076.261 / 2615925.762)	/	(701400.255 / 16003968.167)
	=	0.078778	/	0.043827
	=	1.7975

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 - (13617439.804 + 30659819.91) / 50912195.129)	/	(1 - (7379858.327 + 22828719.165) / 38093715.933)
	=	0.130321	/	0.206993
	=	0.6296

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
	=	16003968.167	/	2615925.762
	=	6.1179

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))
	=	(0 / (0 + 22828719.165))	/	(8252.265 / (8252.265 + 30659819.91))
	=	0	/	0.000269
	=	1

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)
	=	(229345.623 / 16003968.167)	/	(5691.702 / 2615925.762)
	=	0.014331	/	0.002176
	=	6.5859

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)
	=	((7186427.143 + 5965033.445) / 50912195.129)	/	((9367235.762 + 2586776.196) / 38093715.933)
	=	0.258317	/	0.313805
	=	0.8232

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
	=	(47371.727 - 0	-	177698.011)	/	50912195.129
	=	-0.00256

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 Merdeka Battery Materials Tbk has a M-score of 0.83 signals that the company is likely to be a manipulator.

PT Merdeka Battery Materials Tbk Beneish M-Score Related Terms

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PT Merdeka Battery Materials Tbk (ISX:MBMA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » PT Merdeka Battery Materials Tbk (ISX:MBMA) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Jalan Jenderal Sudirman Kav. 52–53, Treasury Tower, 69th Floor, District 8 SCBD Lot. 28, Jakarta Selatan, Jakarta, IDN, 12190

Website

https://www.merdekabattery.com

PT Merdeka Battery Materials Tbk is a metal and mineral mining holding company. It explores, extracts, and produces gold, silver, copper, and other minerals through subsidiaries spread across three islands in Indonesia.

PT Merdeka Battery Materials Tbk (ISX:MBMA) Headlines

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