Dialog Axiata (COL:DIAL.N0000) Beneish M-Score : -2.52 (As of May. 15, 2024)

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What is Dialog Axiata 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

COL:DIAL.N0000' s Beneish M-Score Range Over the Past 10 Years
Min: -4.55 Med: -3.13 Max: -2.41
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Dialog Axiata was -2.41. The lowest was -4.55. And the median was -3.13.

Dialog Axiata Beneish M-Score Historical Data

The historical data trend for Dialog Axiata'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.

Dialog Axiata Beneish M-Score Chart

Dialog Axiata Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.95

-2.90

-3.30

-2.92

-4.55

Dialog Axiata Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-4.55	-3.61	-2.95	-2.52	-

Competitive Comparison of Dialog Axiata's Beneish M-Score

For the Telecom Services subindustry, Dialog Axiata'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.

Dialog Axiata's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Dialog Axiata's Beneish M-Score distribution charts can be found below:

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

Dialog Axiata 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 Dialog Axiata 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 * 1.8666

0.528 * 1.0554

0.404 * 1.1601

0.892 * 1.0487

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8518

4.679 * 0.014014

0.327 * 0.9164

-1.43

This Year (Mar24) TTM:

Last Year (Dec22) TTM:

Total Receivables was රු61,602 Mil.
Revenue was 43167.751 + 76617.658 + 47669.852 + 50066.718 = රු217,522 Mil.
Gross Profit was 15055.688 + 35967.015 + 15509.65 + 15482.006 = රු82,014 Mil.
Total Current Assets was රු107,645 Mil.
Total Assets was රු297,766 Mil.
Property, Plant and Equipment(Net PPE) was රු155,929 Mil.
Depreciation, Depletion and Amortization(DDA) was රු0 Mil.
Selling, General, & Admin. Expense(SGA) was රු64,158 Mil.
Total Current Liabilities was රු151,673 Mil.
Long-Term Debt & Capital Lease Obligation was රු60,775 Mil.
Net Income was 2769.492 + 9711.06 + 3103.167 + 8691.619 = රු24,275 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = රු0 Mil.
Cash Flow from Operations was 6963.319 + 12974.057 + 1309.732 + -1144.696 = රු20,102 Mil.

Total Receivables was රු31,469 Mil.
Revenue was 50948.775 + 74904.552 + 43308.053 + 38250.99 = රු207,412 Mil.
Gross Profit was 15921.979 + 36744.235 + 14237.259 + 15630.401 = රු82,534 Mil.
Total Current Assets was රු75,938 Mil.
Total Assets was රු267,150 Mil.
Property, Plant and Equipment(Net PPE) was රු164,768 Mil.
Depreciation, Depletion and Amortization(DDA) was රු0 Mil.
Selling, General, & Admin. Expense(SGA) was රු71,821 Mil.
Total Current Liabilities was රු133,611 Mil.
Long-Term Debt & Capital Lease Obligation was රු74,378 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)
	=	(61602.353 / 217521.979)	/	(31468.759 / 207412.37)
	=	0.283201	/	0.151721
	=	1.8666

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)
	=	(82533.874 / 207412.37)	/	(82014.359 / 217521.979)
	=	0.397922	/	0.377039
	=	1.0554

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 - (107644.516 + 155929.194) / 297765.501)	/	(1 - (75938.479 + 164768.059) / 267150.47)
	=	0.114828	/	0.098985
	=	1.1601

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
	=	217521.979	/	207412.37
	=	1.0487

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))
	=	(0 / (0 + 164768.059))	/	(0 / (0 + 155929.194))
	=	0	/	0
	=	1

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)
	=	(64158.47 / 217521.979)	/	(71821.284 / 207412.37)
	=	0.294952	/	0.346273
	=	0.8518

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)
	=	((60775.16 + 151673.308) / 297765.501)	/	((74378.314 + 133611.37) / 267150.47)
	=	0.713476	/	0.778549
	=	0.9164

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
	=	(24275.338 - 0	-	20102.412)	/	297765.501
	=	0.014014

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.

Dialog Axiata has a M-score of -1.43 signals that the company is likely to be a manipulator.

Dialog Axiata Beneish M-Score Related Terms

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Dialog Axiata (COL:DIAL.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Dialog Axiata PLC (COL:DIAL.N0000) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 475, Union Place, Colombo, LKA, 02

Website

https://www.dialog.lk

Dialog Axiata PLC operates a mobile telecommunications network. It mainly offers the provision of mobile services, data services, international direct dialing services, leasing of passive infrastructure, provision of interconnect services, pay television transmission services, provision of other data services, and digital services. The company serves its customer-facing technology and service delivery infrastructures spanning mobile, fixed line, broadband, digital television, and digital services sectors. Its segments include Mobile operation; Fixed telephony and broadband operation; and Television operation. The company generates maximum revenue from Mobile operation segment.

Dialog Axiata (COL:DIAL.N0000) Headlines

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