LT Group (PHS:LTG) Beneish M-Score : -2.40 (As of Dec. 13, 2024)

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What is LT Group 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PHS:LTG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05 Med: -2.38 Max: -1.5
Current: -2.4

During the past 13 years, the highest Beneish M-Score of LT Group was -1.50. The lowest was -3.05. And the median was -2.38.

LT Group Beneish M-Score Historical Data

The historical data trend for LT Group'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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LT Group Beneish M-Score Chart

LT Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.35

-3.03

-2.54

-2.35

-2.32

LT Group 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															-2.53	-2.32	-2.32	-2.27	-2.40

Competitive Comparison of LT Group's Beneish M-Score

For the Conglomerates subindustry, LT Group'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.

LT Group's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, LT Group's Beneish M-Score distribution charts can be found below:

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

LT Group 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 LT Group 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 * 1.0554

0.528 * 1.0057

0.404 * 0.9697

0.892 * 1.1078

0.115 * 1.0299

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9225

4.679 * -0.016111

0.327 * 0.9844

-2.40

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ₱313,958 Mil.
Revenue was 34031.681 + 32626.484 + 28506.252 + 30966.716 = ₱126,131 Mil.
Gross Profit was 17253.218 + 16510.33 + 15120.1 + 15413.648 = ₱64,297 Mil.
Total Current Assets was ₱687,119 Mil.
Total Assets was ₱1,316,450 Mil.
Property, Plant and Equipment(Net PPE) was ₱68,878 Mil.
Depreciation, Depletion and Amortization(DDA) was ₱6,104 Mil.
Selling, General, & Admin. Expense(SGA) was ₱25,845 Mil.
Total Current Liabilities was ₱968,347 Mil.
Long-Term Debt & Capital Lease Obligation was ₱5,978 Mil.
Net Income was 7026.484 + 6382.123 + 6415.581 + 6174.7 = ₱25,999 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₱0 Mil.
Cash Flow from Operations was -2306.033 + 30097.789 + -7322.132 + 26738.602 = ₱47,208 Mil.

Total Receivables was ₱268,540 Mil.
Revenue was 30334.207 + 27961.636 + 26036.377 + 29530.002 = ₱113,862 Mil.
Gross Profit was 15232.841 + 15199.621 + 13915.162 + 14027.282 = ₱58,375 Mil.
Total Current Assets was ₱658,917 Mil.
Total Assets was ₱1,299,524 Mil.
Property, Plant and Equipment(Net PPE) was ₱70,077 Mil.
Depreciation, Depletion and Amortization(DDA) was ₱6,413 Mil.
Selling, General, & Admin. Expense(SGA) was ₱25,292 Mil.
Total Current Liabilities was ₱970,576 Mil.
Long-Term Debt & Capital Lease Obligation was ₱6,484 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)
	=	(313958.058 / 126131.133)	/	(268539.551 / 113862.222)
	=	2.48914	/	2.35846
	=	1.0554

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)
	=	(58374.906 / 113862.222)	/	(64297.296 / 126131.133)
	=	0.51268	/	0.509765
	=	1.0057

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 - (687119.164 + 68877.939) / 1316449.581)	/	(1 - (658917.148 + 70076.551) / 1299523.739)
	=	0.42573	/	0.43903
	=	0.9697

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
	=	126131.133	/	113862.222
	=	1.1078

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))
	=	(6413.39 / (6413.39 + 70076.551))	/	(6104.423 / (6104.423 + 68877.939))
	=	0.083846	/	0.081411
	=	1.0299

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)
	=	(25845.077 / 126131.133)	/	(25291.559 / 113862.222)
	=	0.204906	/	0.222124
	=	0.9225

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)
	=	((5977.72 + 968346.887) / 1316449.581)	/	((6483.935 + 970576.37) / 1299523.739)
	=	0.740115	/	0.75186
	=	0.9844

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
	=	(25998.888 - 0	-	47208.226)	/	1316449.581
	=	-0.016111

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.

LT Group has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

LT Group Beneish M-Score Related Terms

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LT Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » LT Group Inc (PHS:LTG) » Definitions » Beneish M-Score

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Address

30th Street Corner Rizal Drive, 11th Floor, Unit 3 Bench Tower, Crescent Park West 5, Bonifacio Global City, Taguig, PHL, 1634

Website

https://www.ltg.com.ph

LT Group Inc has banking, property development, distilled spirits, beverage, and tobacco businesses. The company operates in the Philippines. LT's Banking business provides a full range of banking and other financial services to government, corporate, and retail customers, and it accounts for roughly half of the company's total income. The remaining income is split between the following businesses: Distilled Spirits, which manufactures and sells rum and spirits; Beverages, which produces and sells beer, soft drinks, and bottled water; Tobacco, which manufactures and sells cigarettes and other tobacco products; and Property Development, which develops, leases, manages, and sells residential real estate, but also commercial, industrial, and urban properties.

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