Pakistan Telecommunication Co (KAR:PTC) Beneish M-Score : -2.47 (As of May. 31, 2024)

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What is Pakistan Telecommunication Co 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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KAR:PTC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -2.73 Max: -1.67
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Pakistan Telecommunication Co was -1.67. The lowest was -3.14. And the median was -2.73.

Pakistan Telecommunication Co Beneish M-Score Historical Data

The historical data trend for Pakistan Telecommunication Co'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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Pakistan Telecommunication Co Beneish M-Score Chart

Pakistan Telecommunication Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.99

-2.75

-2.46

-2.73

-2.47

Pakistan Telecommunication Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.81	-2.78	-2.83	-2.47	-

Competitive Comparison of Pakistan Telecommunication Co's Beneish M-Score

For the Telecom Services subindustry, Pakistan Telecommunication Co'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.

Pakistan Telecommunication Co's Beneish M-Score Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Pakistan Telecommunication Co's Beneish M-Score falls into.

Pakistan Telecommunication Co 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 Pakistan Telecommunication Co 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 * 0.9632

0.528 * 1.0842

0.404 * 1.0631

0.892 * 1.2195

0.115 * 1.0614

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.028

4.679 * -0.088801

0.327 * 0.9124

-2.63

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₨157,426 Mil.
Revenue was 49203.165 + 48482.289 + 48640.148 + 47765.62 = ₨194,091 Mil.
Gross Profit was 8357.459 + 7687.131 + 9837.165 + 10140.075 = ₨36,022 Mil.
Total Current Assets was ₨266,085 Mil.
Total Assets was ₨645,804 Mil.
Property, Plant and Equipment(Net PPE) was ₨279,253 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨44,544 Mil.
Selling, General, & Admin. Expense(SGA) was ₨18,029 Mil.
Total Current Liabilities was ₨291,316 Mil.
Long-Term Debt & Capital Lease Obligation was ₨113,617 Mil.
Net Income was -4789.707 + -6261.052 + -764.055 + -2803.994 = ₨-14,619 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 2703.565 + 23557.054 + 13974.181 + 2494.389 = ₨42,729 Mil.

Total Receivables was ₨134,020 Mil.
Revenue was 43186.728 + 40479.706 + 38818.576 + 36670.18 = ₨159,155 Mil.
Gross Profit was 9141.541 + 7522.348 + 7565.785 + 7796.454 = ₨32,026 Mil.
Total Current Assets was ₨292,767 Mil.
Total Assets was ₨627,252 Mil.
Property, Plant and Equipment(Net PPE) was ₨242,694 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨41,496 Mil.
Selling, General, & Admin. Expense(SGA) was ₨14,382 Mil.
Total Current Liabilities was ₨336,570 Mil.
Long-Term Debt & Capital Lease Obligation was ₨94,506 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)
	=	(157426.334 / 194091.222)	/	(134020.212 / 159155.19)
	=	0.811095	/	0.842073
	=	0.9632

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)
	=	(32026.128 / 159155.19)	/	(36021.83 / 194091.222)
	=	0.201226	/	0.185592
	=	1.0842

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 - (266084.722 + 279253.035) / 645804.175)	/	(1 - (292767.343 + 242694.133) / 627252.465)
	=	0.155568	/	0.146338
	=	1.0631

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
	=	194091.222	/	159155.19
	=	1.2195

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))
	=	(41495.939 / (41495.939 + 242694.133))	/	(44543.954 / (44543.954 + 279253.035))
	=	0.146015	/	0.137568
	=	1.0614

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)
	=	(18029.402 / 194091.222)	/	(14381.761 / 159155.19)
	=	0.092891	/	0.090363
	=	1.028

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)
	=	((113617 + 291316.411) / 645804.175)	/	((94506.04 + 336570.291) / 627252.465)
	=	0.627022	/	0.687245
	=	0.9124

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
	=	(-14618.808 - 0	-	42729.189)	/	645804.175
	=	-0.088801

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.

Pakistan Telecommunication Co has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Pakistan Telecommunication Co Beneish M-Score Related Terms

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Pakistan Telecommunication Co (KAR:PTC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Pakistan Telecommunication Co Ltd (KAR:PTC) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Room No. 17, Plot No 55-C, Ground Floor (Margalla Side), Ufone Tower, Main Jinnah Avenue, Blue Area, Sector F-7/1, Islamabad, PAK

Website

https://www.ptcl.com.pk

Pakistan Telecommunication Co Ltd is a telecom company. It is mainly engaged in providing telecommunication services such as wireline and wireless services, interconnects, data services, and equipment sales. The services provided by the company include high-speed internet, smart tv, mobile services, landline services, digital services such as managed Wi-Fi, smart radios, point-to-multipoint and cloud services in the realm of IaaS (Infrastructure as a Service), and hosting services. The company operates in three operating segments i.e. fixed-line communications (Wireline), wireless communications (Wireless), and banking.