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IFIC Bank (DHA:IFIC) Beneish M-Score : -2.44 (As of May. 12, 2024)


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What is IFIC Bank Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:IFIC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.72   Med: -2.44   Max: -2.14
Current: -2.44

During the past 9 years, the highest Beneish M-Score of IFIC Bank was -2.14. The lowest was -2.72. And the median was -2.44.


IFIC Bank 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 IFIC Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0004+0.892 * 0.9776+0.115 * 0.8958
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9156+4.679 * -0.001882-0.327 * 0.8034
=-2.44

* 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.

This Year (Jun23) TTM:Last Year (Jun22) TTM:
Total Receivables was BDT0 Mil.
Revenue was 3544.671 + 3565.331 + 4237.565 + 3781.394 = BDT15,129 Mil.
Gross Profit was 3544.671 + 3565.331 + 4237.565 + 3781.394 = BDT15,129 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT497,462 Mil.
Property, Plant and Equipment(Net PPE) was BDT9,376 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,634 Mil.
Selling, General, & Admin. Expense(SGA) was BDT22 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT28,448 Mil.
Net Income was 454.125 + 622.212 + 1755.211 + 759.093 = BDT3,591 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was 4741.881 + -5440.088 + 2437.687 + 2787.155 = BDT4,527 Mil.
Total Receivables was BDT0 Mil.
Revenue was 4187.31 + 3287.616 + 4464.531 + 3536.417 = BDT15,476 Mil.
Gross Profit was 4187.31 + 3287.616 + 4464.531 + 3536.417 = BDT15,476 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT437,751 Mil.
Property, Plant and Equipment(Net PPE) was BDT8,404 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,289 Mil.
Selling, General, & Admin. Expense(SGA) was BDT24 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT31,160 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)
=(0 / 15128.961) / (0 / 15475.874)
=0 / 0
=1

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)
=(15475.874 / 15475.874) / (15128.961 / 15128.961)
=1 / 1
=1

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 - (0 + 9375.823) / 497461.98) / (1 - (0 + 8404.094) / 437751.25)
=0.981153 / 0.980802
=1.0004

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
=15128.961 / 15475.874
=0.9776

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))
=(1288.876 / (1288.876 + 8404.094)) / (1634.382 / (1634.382 + 9375.823))
=0.13297 / 0.148442
=0.8958

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)
=(21.503 / 15128.961) / (24.023 / 15475.874)
=0.001421 / 0.001552
=0.9156

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)
=((28447.514 + 0) / 497461.98) / ((31160.27 + 0) / 437751.25)
=0.057185 / 0.071183
=0.8034

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
=(3590.641 - 0 - 4526.635) / 497461.98
=-0.001882

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.

IFIC Bank has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.


IFIC Bank Beneish M-Score Related Terms

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IFIC Bank (DHA:IFIC) Business Description

Traded in Other Exchanges
N/A
Address
IFIC Tower, 61 Purana Paltan, GPO Box : 2229, Dhaka, BGD, 1000
IFIC Bank PLC is a commercial banking company in Bangladesh. The company provides corporate banking, retail banking internet banking, and SME banking. The company is also engaged in Treasury and capital market offering Cash Management, Liquidity Planning, Liquidity Protection, Trading of Foreign Exchange and Money Market Instruments, and Risk Management. Its segments are Corporate; SME; Short term Agri credit; Consumer and Others. It derives interest income from the Conventional banking unit and Off-Shore banking unit.