Iqzan Holding Bhd (XKLS:7183) Beneish M-Score : -3.40 (As of May. 08, 2024)

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What is Iqzan Holding Bhd 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 -3.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:7183' s Beneish M-Score Range Over the Past 10 Years
Min: -4.78 Med: -2.4 Max: 5.08
Current: -3.4

During the past 13 years, the highest Beneish M-Score of Iqzan Holding Bhd was 5.08. The lowest was -4.78. And the median was -2.40.

Iqzan Holding Bhd Beneish M-Score Historical Data

The historical data trend for Iqzan Holding Bhd'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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Iqzan Holding Bhd Beneish M-Score Chart

Iqzan Holding Bhd Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-3.56

1.18

-1.57

-0.75

Iqzan Holding Bhd Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															4.30	-0.75	-2.43	-4.16	-3.40

Competitive Comparison of Iqzan Holding Bhd's Beneish M-Score

For the Conglomerates subindustry, Iqzan Holding Bhd'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.

Iqzan Holding Bhd's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Iqzan Holding Bhd's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Iqzan Holding Bhd's Beneish M-Score falls into.

Iqzan Holding Bhd 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 Iqzan Holding Bhd 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 * 2.336

0.528 * 0.8883

0.404 * 0.4623

0.892 * 0.6447

0.115 * 1.0726

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1691

4.679 * -0.329855

0.327 * 0.9625

-3.40

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was RM7.29 Mil.
Revenue was 2.602 + 1.822 + 2.722 + 3.338 = RM10.48 Mil.
Gross Profit was 1.862 + 1.228 + 1.077 + 2.04 = RM6.21 Mil.
Total Current Assets was RM10.84 Mil.
Total Assets was RM60.86 Mil.
Property, Plant and Equipment(Net PPE) was RM39.24 Mil.
Depreciation, Depletion and Amortization(DDA) was RM2.61 Mil.
Selling, General, & Admin. Expense(SGA) was RM7.39 Mil.
Total Current Liabilities was RM31.68 Mil.
Long-Term Debt & Capital Lease Obligation was RM1.35 Mil.
Net Income was 10.615 + -27.119 + -0.381 + -0.322 = RM-17.21 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.00 Mil.
Cash Flow from Operations was 1.791 + 0.787 + 0.267 + 0.023 = RM2.87 Mil.

Total Receivables was RM4.84 Mil.
Revenue was 4.337 + 3.395 + 5.416 + 3.115 = RM16.26 Mil.
Gross Profit was 0.939 + 1.521 + 3.939 + 2.154 = RM8.55 Mil.
Total Current Assets was RM9.43 Mil.
Total Assets was RM83.75 Mil.
Property, Plant and Equipment(Net PPE) was RM42.24 Mil.
Depreciation, Depletion and Amortization(DDA) was RM3.03 Mil.
Selling, General, & Admin. Expense(SGA) was RM9.81 Mil.
Total Current Liabilities was RM45.05 Mil.
Long-Term Debt & Capital Lease Obligation was RM2.17 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)
	=	(7.29 / 10.484)	/	(4.841 / 16.263)
	=	0.695345	/	0.29767
	=	2.336

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)
	=	(8.553 / 16.263)	/	(6.207 / 10.484)
	=	0.525918	/	0.592045
	=	0.8883

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 - (10.838 + 39.244) / 60.86)	/	(1 - (9.43 + 42.237) / 83.752)
	=	0.177095	/	0.383095
	=	0.4623

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
	=	10.484	/	16.263
	=	0.6447

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))
	=	(3.03 / (3.03 + 42.237))	/	(2.612 / (2.612 + 39.244))
	=	0.066936	/	0.062404
	=	1.0726

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)
	=	(7.394 / 10.484)	/	(9.811 / 16.263)
	=	0.705265	/	0.603271
	=	1.1691

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)
	=	((1.347 + 31.682) / 60.86)	/	((2.168 + 45.054) / 83.752)
	=	0.542705	/	0.563831
	=	0.9625

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
	=	(-17.207 - 0	-	2.868)	/	60.86
	=	-0.329855

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.

Iqzan Holding Bhd has a M-score of -3.40 suggests that the company is unlikely to be a manipulator.

Iqzan Holding Bhd Beneish M-Score Related Terms

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Iqzan Holding Bhd (XKLS:7183) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Iqzan Holding Bhd (XKLS:7183) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Plot 49 and 63, Lorong Perusahaan 2B, Kulim Industrial Estate, Kulim, KDH, MYS, 09000

Website

https://www.iqzan.com

Iqzan Holding Bhd is a Malaysian-based firm. It operates in four segments: Manufacturing of wooden crates, pallets, and other related wood products; Trading of value, fittings, and machinery, steel, stainless aluminum, equipment, components, sanitary for the food beverage industry, raw materials, computers, finished goods, wooden crates and pallets, and sale and marketing of agricultural waste related products; Investment holding and provision of management services; and Others that include services of calibration and testing of equipment and general products. It generates a vast majority of its revenues from the Manufacturing segment. Geographically, the company operates in Malaysia, Thailand, and Indonesia; with the majority of revenue coming from Malaysia.

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