Orient Telecoms (LSE:ORNT) Beneish M-Score : 0.09 (As of Jun. 22, 2024)

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What is Orient Telecoms 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 0.09 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Orient Telecoms's Beneish M-Score or its related term are showing as below:

LSE:ORNT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87 Med: -2.39 Max: 0.09
Current: 0.09

During the past 7 years, the highest Beneish M-Score of Orient Telecoms was 0.09. The lowest was -4.87. And the median was -2.39.

Orient Telecoms Beneish M-Score Historical Data

The historical data trend for Orient Telecoms'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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Orient Telecoms Beneish M-Score Chart

Orient Telecoms Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-4.87

0.09

Orient Telecoms Semi-Annual Data
	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial								-	-4.87	-	0.09	-

Competitive Comparison of Orient Telecoms's Beneish M-Score

For the Telecom Services subindustry, Orient Telecoms'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.

Orient Telecoms's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Orient Telecoms's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Orient Telecoms's Beneish M-Score falls into.

Orient Telecoms 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 Orient Telecoms 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 * 4.0658

0.528 * 0.8657

0.404 * 0

0.892 * 0.7565

0.115 * 0.7604

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1175

4.679 * 0.087065

0.327 * 0.7468

0.09

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was £0.24 Mil.
Revenue was £0.46 Mil.
Gross Profit was £0.42 Mil.
Total Current Assets was £0.61 Mil.
Total Assets was £0.80 Mil.
Property, Plant and Equipment(Net PPE) was £0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.10 Mil.
Selling, General, & Admin. Expense(SGA) was £0.37 Mil.
Total Current Liabilities was £0.16 Mil.
Long-Term Debt & Capital Lease Obligation was £0.11 Mil.
Net Income was £0.04 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-0.03 Mil.

Total Receivables was £0.08 Mil.
Revenue was £0.61 Mil.
Gross Profit was £0.48 Mil.
Total Current Assets was £0.59 Mil.
Total Assets was £0.89 Mil.
Property, Plant and Equipment(Net PPE) was £0.30 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.10 Mil.
Selling, General, & Admin. Expense(SGA) was £0.44 Mil.
Total Current Liabilities was £0.19 Mil.
Long-Term Debt & Capital Lease Obligation was £0.20 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)
	=	(0.243 / 0.463)	/	(0.079 / 0.612)
	=	0.524838	/	0.129085
	=	4.0658

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)
	=	(0.476 / 0.612)	/	(0.416 / 0.463)
	=	0.777778	/	0.898488
	=	0.8657

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 - (0.605 + 0.199) / 0.804)	/	(1 - (0.593 + 0.295) / 0.887)
	=	0	/	-0.001127
	=	0

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
	=	0.463	/	0.612
	=	0.7565

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))
	=	(0.097 / (0.097 + 0.295))	/	(0.096 / (0.096 + 0.199))
	=	0.247449	/	0.325424
	=	0.7604

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)
	=	(0.372 / 0.463)	/	(0.44 / 0.612)
	=	0.803456	/	0.718954
	=	1.1175

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)
	=	((0.106 + 0.158) / 0.804)	/	((0.201 + 0.189) / 0.887)
	=	0.328358	/	0.439684
	=	0.7468

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
	=	(0.04 - 0	-	-0.03)	/	0.804
	=	0.087065

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.

Orient Telecoms has a M-score of 0.09 signals that the company is likely to be a manipulator.

Orient Telecoms Beneish M-Score Related Terms

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Orient Telecoms (LSE:ORNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Orient Telecoms PLC (LSE:ORNT) » Definitions » Beneish M-Score

Comparable Companies

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Traded in Other Exchanges

N/A

Address

Jalan Stesen Sentral 5, Suite 2B-25-1, 25th Floor, Plaza Sentral, Block 2B, Kuala Lumpur, SGR, MYS, 50470

Website

https://www.orient-telecoms.com

Orient Telecoms PLC is a company that provides telecommunication services using the network infrastructure owned by other network operators to enable cost-effective and rapid connectivity to large bandwidth consumers initially in Malaysia and subsequently within other Southeast Asian countries. It operates in a highly competitive and saturated market as the company is not involved in building its own network infrastructure which would require significant capital expenditure.

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