Promimic AB (OSTO:PRO) Beneish M-Score : -1.97 (As of Dec. 12, 2024)

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What is Promimic AB 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 -1.97 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OSTO:PRO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.05 Med: -1.97 Max: -1.64
Current: -1.97

During the past 5 years, the highest Beneish M-Score of Promimic AB was -1.64. The lowest was -2.05. And the median was -1.97.

Promimic AB Beneish M-Score Historical Data

The historical data trend for Promimic AB'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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Promimic AB Beneish M-Score Chart

Promimic AB Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.90

Promimic AB Quarterly Data
	Dec19	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial										-2.05	-1.90	-1.64	-1.98	-1.97

Competitive Comparison of Promimic AB's Beneish M-Score

For the Medical Devices subindustry, Promimic AB'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.

Promimic AB's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Promimic AB's Beneish M-Score distribution charts can be found below:

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

Promimic AB 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 Promimic AB 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 * 1.2564

0.528 * 0.9844

0.404 * 1.1542

0.892 * 1.2717

0.115 * 1.4239

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.010761

0.327 * 1.07

-1.97

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was kr11.38 Mil.
Revenue was 10.668 + 12.013 + 8.655 + 10.214 = kr41.55 Mil.
Gross Profit was 11.373 + 12.575 + 9.16 + 10.66 = kr43.77 Mil.
Total Current Assets was kr47.69 Mil.
Total Assets was kr79.17 Mil.
Property, Plant and Equipment(Net PPE) was kr10.73 Mil.
Depreciation, Depletion and Amortization(DDA) was kr5.11 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr9.59 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 Mil.
Net Income was -1.569 + -2.525 + -3.5 + -3.504 = kr-11.10 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.00 Mil.
Cash Flow from Operations was -1.032 + -6.023 + -0.627 + -2.564 = kr-10.25 Mil.

Total Receivables was kr7.13 Mil.
Revenue was 10.034 + 10.63 + 6.192 + 5.818 = kr32.67 Mil.
Gross Profit was 10.403 + 10.989 + 6.463 + 6.027 = kr33.88 Mil.
Total Current Assets was kr61.46 Mil.
Total Assets was kr85.44 Mil.
Property, Plant and Equipment(Net PPE) was kr4.56 Mil.
Depreciation, Depletion and Amortization(DDA) was kr3.88 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.00 Mil.
Total Current Liabilities was kr9.67 Mil.
Long-Term Debt & Capital Lease Obligation was kr0.00 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)
	=	(11.384 / 41.55)	/	(7.125 / 32.674)
	=	0.273983	/	0.218063
	=	1.2564

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)
	=	(33.882 / 32.674)	/	(43.768 / 41.55)
	=	1.036971	/	1.053381
	=	0.9844

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 - (47.685 + 10.728) / 79.172)	/	(1 - (61.463 + 4.564) / 85.436)
	=	0.262201	/	0.227176
	=	1.1542

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
	=	41.55	/	32.674
	=	1.2717

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))
	=	(3.876 / (3.876 + 4.564))	/	(5.107 / (5.107 + 10.728))
	=	0.459242	/	0.322513
	=	1.4239

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 / 41.55)	/	(0 / 32.674)
	=	0	/	0
	=	1

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 + 9.588) / 79.172)	/	((0 + 9.67) / 85.436)
	=	0.121103	/	0.113184
	=	1.07

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
	=	(-11.098 - 0	-	-10.246)	/	79.172
	=	-0.010761

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.

Promimic AB has a M-score of -1.97 suggests that the company is unlikely to be a manipulator.

Promimic AB Beneish M-Score Related Terms

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