JPMorgan Asia Growth &ome (LSE:JAGI) Beneish M-Score : -0.70 (As of Apr. 05, 2025)

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What is JPMorgan Asia Growth &ome 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 -0.7 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for JPMorgan Asia Growth &ome's Beneish M-Score or its related term are showing as below:

LSE:JAGI' s Beneish M-Score Range Over the Past 10 Years
Min: -0.98 Med: -0.84 Max: -0.7
Current: -0.7

During the past 13 years, the highest Beneish M-Score of JPMorgan Asia Growth &ome was -0.70. The lowest was -0.98. And the median was -0.84.

JPMorgan Asia Growth &ome 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 JPMorgan Asia Growth &ome 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

0.528 * 1

0.404 * 1

0.892 * 1.9545

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5079

4.679 * 0.110114

0.327 * 0

-0.70

* 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 £0.00 Mil.
Revenue was £44.45 Mil.
Gross Profit was £44.45 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £338.72 Mil.
Property, Plant and Equipment(Net PPE) was £0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.00 Mil.
Selling, General, & Admin. Expense(SGA) was £0.82 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £40.40 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £3.10 Mil.

Total Receivables was £0.00 Mil.
Revenue was £22.74 Mil.
Gross Profit was £22.74 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £346.72 Mil.
Property, Plant and Equipment(Net PPE) was £0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.00 Mil.
Selling, General, & Admin. Expense(SGA) was £0.83 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £1.06 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 / 44.453)	/	(0 / 22.744)
	=	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)
	=	(22.744 / 22.744)	/	(44.453 / 44.453)
	=	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 + 0) / 338.721)	/	(1 - (0 + 0) / 346.716)
	=	1	/	1
	=	1

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
	=	44.453	/	22.744
	=	1.9545

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 + 0))	/	(0 / (0 + 0))
	=		/
	=	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)
	=	(0.821 / 44.453)	/	(0.827 / 22.744)
	=	0.018469	/	0.036361
	=	0.5079

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)
	=	((0 + 0) / 338.721)	/	((1.058 + 0) / 346.716)
	=	0	/	0.003051
	=	0

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
	=	(40.397 - 0	-	3.099)	/	338.721
	=	0.110114

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.

JPMorgan Asia Growth &ome has a M-score of -0.70 signals that the company is likely to be a manipulator.

JPMorgan Asia Growth &ome Beneish M-Score Related Terms

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JPMorgan Asia Growth &ome Business Description

Industry

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Address

60 Victoria Embankment, London, GBR, EC4Y 0JP

Website

http://www.jpmasiagrowthandincome.co.uk

JPMorgan Asia Growth & Income PLC is a United Kingdom-based investment trust company. Its objective is to provide shareholders with a total return from investing in equities quoted on the stock markets of Asia, excluding Japan. The company invests in a portfolio of Asian stocks with an emphasis on capital growth rather than income. Investment risks are managed by diversifying investment.