Sutlej Textiles and Industries (NSE:SUTLEJTEX) Beneish M-Score : -3.06 (As of Dec. 14, 2024)

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What is Sutlej Textiles and Industries 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 -3.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NSE:SUTLEJTEX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.44 Med: -2.52 Max: -0.52
Current: -3.06

During the past 13 years, the highest Beneish M-Score of Sutlej Textiles and Industries was -0.52. The lowest was -3.44. And the median was -2.52.

Sutlej Textiles and Industries Beneish M-Score Historical Data

The historical data trend for Sutlej Textiles and Industries'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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Sutlej Textiles and Industries Beneish M-Score Chart

Sutlej Textiles and Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-3.44

-2.52

-1.93

-2.80

-3.06

Sutlej Textiles and Industries 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															-	-	-3.06	-	-

Competitive Comparison of Sutlej Textiles and Industries's Beneish M-Score

For the Textile Manufacturing subindustry, Sutlej Textiles and Industries'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.

Sutlej Textiles and Industries's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sutlej Textiles and Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sutlej Textiles and Industries's Beneish M-Score falls into.

Sutlej Textiles and Industries 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 Sutlej Textiles and Industries 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 * 1.2772

0.528 * 1.2896

0.404 * 0.8006

0.892 * 0.8764

0.115 * 0.989

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9082

4.679 * -0.169491

0.327 * 1.0509

-3.06

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹4,210 Mil.
Revenue was ₹26,528 Mil.
Gross Profit was ₹8,485 Mil.
Total Current Assets was ₹10,079 Mil.
Total Assets was ₹21,089 Mil.
Property, Plant and Equipment(Net PPE) was ₹10,663 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1,170 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,276 Mil.
Total Current Liabilities was ₹8,157 Mil.
Long-Term Debt & Capital Lease Obligation was ₹2,766 Mil.
Net Income was ₹-1,356 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹2,219 Mil.

Total Receivables was ₹3,761 Mil.
Revenue was ₹30,269 Mil.
Gross Profit was ₹12,485 Mil.
Total Current Assets was ₹12,120 Mil.
Total Assets was ₹24,323 Mil.
Property, Plant and Equipment(Net PPE) was ₹11,702 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1,269 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,603 Mil.
Total Current Liabilities was ₹9,211 Mil.
Long-Term Debt & Capital Lease Obligation was ₹2,777 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)
	=	(4209.5 / 26527.5)	/	(3760.7 / 30268.5)
	=	0.158684	/	0.124245
	=	1.2772

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)
	=	(12485 / 30268.5)	/	(8484.7 / 26527.5)
	=	0.412475	/	0.319845
	=	1.2896

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 - (10078.6 + 10662.7) / 21089)	/	(1 - (12120.4 + 11701.6) / 24322.9)
	=	0.016487	/	0.020594
	=	0.8006

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
	=	26527.5	/	30268.5
	=	0.8764

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))
	=	(1268.8 / (1268.8 + 11701.6))	/	(1170.4 / (1170.4 + 10662.7))
	=	0.097823	/	0.098909
	=	0.989

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)
	=	(1275.6 / 26527.5)	/	(1602.7 / 30268.5)
	=	0.048086	/	0.052949
	=	0.9082

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)
	=	((2766.3 + 8157.2) / 21089)	/	((2777 + 9210.8) / 24322.9)
	=	0.517971	/	0.492861
	=	1.0509

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
	=	(-1355.6 - 0	-	2218.8)	/	21089
	=	-0.169491

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.

Sutlej Textiles and Industries has a M-score of -3.06 suggests that the company is unlikely to be a manipulator.

Sutlej Textiles and Industries Beneish M-Score Related Terms

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Sutlej Textiles and Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Sutlej Textiles and Industries Ltd (NSE:SUTLEJTEX) » Definitions » Beneish M-Score

Traded in Other Exchanges

532782:India

Address

Near Jay Coach, Off Western Express Highway, E-wing, 5th & 6th Floor, Lotus Corporate Park, 185/A, Graham Firth Steel Compound, Goregaon (East), Mumbai, MH, IND, 400063

Website

https://www.sutlejtextiles.com

Sutlej Textiles and Industries Ltd is a textile manufacturing company. It manufactures cotton blended dyed and melange yarn, natural and blended yarns and fabrics, and home textile furnishing. The business segments of the group are Yarn which comprises cotton and man-made fibers yarn and Home Textiles which comprises home furnishing and fabric processing. The yarn segment contributes majorly to the revenue of the company.

Sutlej Textiles and Industries Headlines

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