Asseco South Eastern Europe (WAR:ASE) Beneish M-Score : -2.33 (As of Dec. 11, 2024)

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What is Asseco South Eastern Europe 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Asseco South Eastern Europe's Beneish M-Score or its related term are showing as below:

WAR:ASE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.64 Max: -2.15
Current: -2.33

During the past 13 years, the highest Beneish M-Score of Asseco South Eastern Europe was -2.15. The lowest was -2.91. And the median was -2.64.

Asseco South Eastern Europe Beneish M-Score Historical Data

The historical data trend for Asseco South Eastern Europe'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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Asseco South Eastern Europe Beneish M-Score Chart

Asseco South Eastern Europe Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-2.58

-2.68

-2.20

-2.59

Asseco South Eastern Europe 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															-2.43	-2.59	-2.53	-2.31	-2.33

Competitive Comparison of Asseco South Eastern Europe's Beneish M-Score

For the Software - Application subindustry, Asseco South Eastern Europe'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.

Asseco South Eastern Europe's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Asseco South Eastern Europe's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Asseco South Eastern Europe's Beneish M-Score falls into.

Asseco South Eastern Europe 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 Asseco South Eastern Europe 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 * 1.1228

0.528 * 1.0368

0.404 * 1.1206

0.892 * 1.0361

0.115 * 1.1067

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0173

4.679 * -0.010159

0.327 * 1.0742

-2.33

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was zł456 Mil.
Revenue was 444.795 + 397.61 + 367.056 + 488.594 = zł1,698 Mil.
Gross Profit was 116.103 + 92.972 + 95.989 + 114.061 = zł419 Mil.
Total Current Assets was zł856 Mil.
Total Assets was zł2,236 Mil.
Property, Plant and Equipment(Net PPE) was zł224 Mil.
Depreciation, Depletion and Amortization(DDA) was zł95 Mil.
Selling, General, & Admin. Expense(SGA) was zł204 Mil.
Total Current Liabilities was zł662 Mil.
Long-Term Debt & Capital Lease Obligation was zł142 Mil.
Net Income was 54.003 + 40.074 + 47.01 + 45.803 = zł187 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0 Mil.
Cash Flow from Operations was 40.156 + 1.165 + -4.426 + 172.71 = zł210 Mil.

Total Receivables was zł392 Mil.
Revenue was 398.346 + 375.527 + 380.064 + 484.907 = zł1,639 Mil.
Gross Profit was 110.129 + 99.596 + 98.424 + 111.235 = zł419 Mil.
Total Current Assets was zł820 Mil.
Total Assets was zł1,867 Mil.
Property, Plant and Equipment(Net PPE) was zł185 Mil.
Depreciation, Depletion and Amortization(DDA) was zł91 Mil.
Selling, General, & Admin. Expense(SGA) was zł194 Mil.
Total Current Liabilities was zł549 Mil.
Long-Term Debt & Capital Lease Obligation was zł76 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)
	=	(455.607 / 1698.055)	/	(391.642 / 1638.844)
	=	0.268311	/	0.238975
	=	1.1228

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)
	=	(419.384 / 1638.844)	/	(419.125 / 1698.055)
	=	0.255902	/	0.246827
	=	1.0368

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 - (855.734 + 223.988) / 2236.057)	/	(1 - (819.862 + 185.427) / 1866.713)
	=	0.517131	/	0.461466
	=	1.1206

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
	=	1698.055	/	1638.844
	=	1.0361

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))
	=	(91.055 / (91.055 + 185.427))	/	(94.889 / (94.889 + 223.988))
	=	0.329334	/	0.297572
	=	1.1067

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)
	=	(204.327 / 1698.055)	/	(193.858 / 1638.844)
	=	0.12033	/	0.118289
	=	1.0173

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)
	=	((141.708 + 661.761) / 2236.057)	/	((75.76 + 548.678) / 1866.713)
	=	0.359324	/	0.334512
	=	1.0742

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
	=	(186.89 - 0	-	209.605)	/	2236.057
	=	-0.010159

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.

Asseco South Eastern Europe has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.

Asseco South Eastern Europe Beneish M-Score Related Terms

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Asseco South Eastern Europe Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Asseco South Eastern Europe SA (WAR:ASE) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

ul. Branickiego 13, Warszawa, POL, 02-972

Website

http://www.asseco.com

Asseco South Eastern Europe SA along with its subsidiaries provides implementation, integration and outsourcing services. It conducts business operations in the markets of Poland, South Eastern Europe, and Turkey. Its business is divided into three operating segments. Banking Solutions segment deals with integrated banking systems based on the Oracle and Microsoft platforms, including primarily core banking systems. Payment Solutions is engaged in the sale and maintenance of ATMs and POS terminals (point of sale) as well as in the provision of related support services. Systems Integration segment is engaged in the development of customized IT systems, integration of third-party software and elements of infrastructure, as well as in the sale and installation of hardware solutions.

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