AMTD Digital (AMTD Digital) Beneish M-Score : 9.51 (As of May. 25, 2024)

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What is AMTD Digital 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 9.51 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.45 Med: -2.05 Max: 9.51
Current: 9.51

During the past 5 years, the highest Beneish M-Score of AMTD Digital was 9.51. The lowest was -2.45. And the median was -2.05.

AMTD Digital Beneish M-Score Historical Data

The historical data trend for AMTD Digital'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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AMTD Digital Beneish M-Score Chart

AMTD Digital Annual Data

Trend

Apr19

Apr20

Apr21

Apr22

Apr23

Beneish M-Score

-2.05

-2.45

9.51

AMTD Digital Semi-Annual Data
	Apr19	Apr20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Beneish M-Score	Get a 7-Day Free Trial			-	-2.45	-	9.51	-

Competitive Comparison of AMTD Digital's Beneish M-Score

For the Software - Application subindustry, AMTD Digital'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.

AMTD Digital's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, AMTD Digital's Beneish M-Score distribution charts can be found below:

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

AMTD Digital 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 AMTD Digital 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 * 0.3043

0.528 * 1

0.404 * 2.0564

0.892 * 1.3085

0.115 * 118.7751

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7994

4.679 * 0.019776

0.327 * 6.3432

9.51

This Year (Apr23) TTM:

Last Year (Apr22) TTM:

Total Receivables was $143.82 Mil.
Revenue was $33.07 Mil.
Gross Profit was $33.07 Mil.
Total Current Assets was $319.50 Mil.
Total Assets was $661.68 Mil.
Property, Plant and Equipment(Net PPE) was $238.60 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.99 Mil.
Selling, General, & Admin. Expense(SGA) was $13.41 Mil.
Total Current Liabilities was $139.54 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $41.74 Mil.
Gross Profit was $13.15 Mil.
Cash Flow from Operations was $15.50 Mil.

Total Receivables was $361.16 Mil.
Revenue was $25.27 Mil.
Gross Profit was $25.27 Mil.
Total Current Assets was $379.24 Mil.
Total Assets was $410.51 Mil.
Property, Plant and Equipment(Net PPE) was $0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.85 Mil.
Selling, General, & Admin. Expense(SGA) was $12.83 Mil.
Total Current Liabilities was $13.65 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(143.822 / 33.066)	/	(361.162 / 25.271)
	=	4.349543	/	14.291559
	=	0.3043

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)
	=	(25.271 / 25.271)	/	(33.066 / 33.066)
	=	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 - (319.503 + 238.6) / 661.676)	/	(1 - (379.242 + 0.016) / 410.505)
	=	0.156531	/	0.076118
	=	2.0564

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
	=	33.066	/	25.271
	=	1.3085

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))
	=	(0.846 / (0.846 + 0.016))	/	(1.988 / (1.988 + 238.6))
	=	0.981439	/	0.008263
	=	118.7751

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)
	=	(13.414 / 33.066)	/	(12.825 / 25.271)
	=	0.405674	/	0.507499
	=	0.7994

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)
	=	((0 + 139.543) / 661.676)	/	((0 + 13.648) / 410.505)
	=	0.210893	/	0.033247
	=	6.3432

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
	=	(41.737 - 13.151	-	15.501)	/	661.676
	=	0.019776

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.

AMTD Digital has a M-score of 9.51 signals that the company is likely to be a manipulator.

AMTD Digital Beneish M-Score Related Terms

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AMTD Digital (AMTD Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » AMTD Digital Inc (NYSE:HKD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

27-29 rue de Bassano, Paris, FRA

Website

https://www.amtdigital.net

AMTD Digital Inc is a comprehensive digital solutions platform in Asia with businesses spanning multiple verticals, including digital financial services, SpiderNet ecosystem solutions, digital media, content, and marketing, and digital investments.