Abu Dhabi Ship Building PJSC (ADX:ADSB) Beneish M-Score : 1.71 (As of May. 05, 2024)

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What is Abu Dhabi Ship Building PJSC 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 1.71 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Abu Dhabi Ship Building PJSC's Beneish M-Score or its related term are showing as below:

ADX:ADSB' s Beneish M-Score Range Over the Past 10 Years
Min: -5.88 Med: -2 Max: 1.71
Current: 1.71

During the past 13 years, the highest Beneish M-Score of Abu Dhabi Ship Building PJSC was 1.71. The lowest was -5.88. And the median was -2.00.

Abu Dhabi Ship Building PJSC Beneish M-Score Historical Data

The historical data trend for Abu Dhabi Ship Building PJSC'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.

* Premium members only.

Abu Dhabi Ship Building PJSC Beneish M-Score Chart

Abu Dhabi Ship Building PJSC Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.02

-1.98

-1.51

-5.88

1.71

Abu Dhabi Ship Building PJSC Semi-Annual Data
	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Beneish M-Score	Get a 7-Day Free Trial												-2.02	-1.98	-1.51	-5.88	1.71

Competitive Comparison of Abu Dhabi Ship Building PJSC's Beneish M-Score

For the Aerospace & Defense subindustry, Abu Dhabi Ship Building PJSC'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.

Abu Dhabi Ship Building PJSC's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Abu Dhabi Ship Building PJSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Abu Dhabi Ship Building PJSC's Beneish M-Score falls into.

Abu Dhabi Ship Building PJSC 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 Abu Dhabi Ship Building PJSC 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 * 0.6554

0.528 * 0.952

0.404 * 4.9228

0.892 * 2.5958

0.115 * 1.1107

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6709

4.679 * 0.347721

0.327 * 1.5209

1.71

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was د.إ689.6 Mil.
Revenue was د.إ660.2 Mil.
Gross Profit was د.إ79.4 Mil.
Total Current Assets was د.إ1,119.7 Mil.
Total Assets was د.إ1,493.4 Mil.
Property, Plant and Equipment(Net PPE) was د.إ145.3 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ16.9 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ11.5 Mil.
Total Current Liabilities was د.إ511.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ8.1 Mil.
Net Income was د.إ20.5 Mil.
Gross Profit was د.إ0.0 Mil.
Cash Flow from Operations was د.إ-498.8 Mil.

Total Receivables was د.إ405.4 Mil.
Revenue was د.إ254.3 Mil.
Gross Profit was د.إ29.1 Mil.
Total Current Assets was د.إ1,327.7 Mil.
Total Assets was د.إ1,530.3 Mil.
Property, Plant and Equipment(Net PPE) was د.إ155.0 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ20.3 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ6.6 Mil.
Total Current Liabilities was د.إ340.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ9.8 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)
	=	(689.645 / 660.204)	/	(405.364 / 254.334)
	=	1.044594	/	1.593825
	=	0.6554

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)
	=	(29.111 / 254.334)	/	(79.377 / 660.204)
	=	0.11446	/	0.120231
	=	0.952

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 - (1119.678 + 145.293) / 1493.419)	/	(1 - (1327.736 + 154.974) / 1530.262)
	=	0.15297	/	0.031074
	=	4.9228

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
	=	660.204	/	254.334
	=	2.5958

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))
	=	(20.321 / (20.321 + 154.974))	/	(16.932 / (16.932 + 145.293))
	=	0.115925	/	0.104374
	=	1.1107

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)
	=	(11.494 / 660.204)	/	(6.6 / 254.334)
	=	0.01741	/	0.02595
	=	0.6709

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)
	=	((8.067 + 511.045) / 1493.419)	/	((9.772 + 339.976) / 1530.262)
	=	0.3476	/	0.228554
	=	1.5209

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
	=	(20.457 - 0	-	-498.836)	/	1493.419
	=	0.347721

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.

Abu Dhabi Ship Building PJSC has a M-score of 1.71 signals that the company is likely to be a manipulator.

Abu Dhabi Ship Building PJSC Beneish M-Score Related Terms

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Abu Dhabi Ship Building PJSC (ADX:ADSB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Abu Dhabi Ship Building PJSC (ADX:ADSB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Musafah Industrial Area, P.O. Box 8922, Abu Dhabi, ARE

Website

https://www.adsb.ae

Abu Dhabi Ship Building PJSC is a shipbuilder and support services contractor locally and internationally. Its operating segments include New Build and Engineering; Small Boats; Military Repairs and Maintenance; Commercial Repairs and Maintenance and Combat System Integration. It generates maximum revenue from the New Build and Engineering services segment. It provides the design, engineering, research and development, construction, commissioning, test and trials, ILS, upgrades, conversions, and consultancy services for military, commercial, and leisure vessels in any construction material.

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