Jordan Steel (AMM:JOST) Beneish M-Score : 3.20 (As of Jun. 23, 2024)

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What is Jordan Steel 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 3.2 higher than -1.78, which implies that the company might have manipulated its financial results.

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

AMM:JOST' s Beneish M-Score Range Over the Past 10 Years
Min: -39.55 Med: -2.21 Max: 8.87
Current: 3.2

During the past 13 years, the highest Beneish M-Score of Jordan Steel was 8.87. The lowest was -39.55. And the median was -2.21.

Jordan Steel Beneish M-Score Historical Data

The historical data trend for Jordan Steel'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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Jordan Steel Beneish M-Score Chart

Jordan Steel Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.56

4.10

-2.04

-2.31

-2.10

Jordan Steel 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															-3.24	-0.60	-21.95	-2.10	3.20

Competitive Comparison of Jordan Steel's Beneish M-Score

For the Steel subindustry, Jordan Steel'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.

Jordan Steel's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Jordan Steel's Beneish M-Score distribution charts can be found below:

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

Jordan Steel 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 Jordan Steel 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 * 1.8081

0.528 * 4.5684

0.404 * 15.339

0.892 * 0.5943

0.115 * 4.441

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 15.8305

4.679 * -0.042532

0.327 * 1.0746

3.20

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was JOD10.42 Mil.
Revenue was 1.647 + 2.118 + 1.846 + 1.25 = JOD6.86 Mil.
Gross Profit was 0.261 + -0.283 + -0.16 + 0.019 = JOD-0.16 Mil.
Total Current Assets was JOD16.37 Mil.
Total Assets was JOD59.53 Mil.
Property, Plant and Equipment(Net PPE) was JOD40.65 Mil.
Depreciation, Depletion and Amortization(DDA) was JOD0.13 Mil.
Selling, General, & Admin. Expense(SGA) was JOD0.72 Mil.
Total Current Liabilities was JOD29.60 Mil.
Long-Term Debt & Capital Lease Obligation was JOD14.54 Mil.
Net Income was 0.035 + -1.438 + -0.415 + -0.387 = JOD-2.21 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = JOD0.00 Mil.
Cash Flow from Operations was 0.109 + 0.188 + -0.061 + 0.091 = JOD0.33 Mil.

Total Receivables was JOD9.70 Mil.
Revenue was 0.619 + -0.434 + 5.94 + 5.42 = JOD11.55 Mil.
Gross Profit was 0.066 + 0.079 + -0.3 + -1.098 = JOD-1.25 Mil.
Total Current Assets was JOD15.46 Mil.
Total Assets was JOD56.33 Mil.
Property, Plant and Equipment(Net PPE) was JOD40.72 Mil.
Depreciation, Depletion and Amortization(DDA) was JOD0.60 Mil.
Selling, General, & Admin. Expense(SGA) was JOD0.08 Mil.
Total Current Liabilities was JOD24.33 Mil.
Long-Term Debt & Capital Lease Obligation was JOD14.54 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)
	=	(10.421 / 6.861)	/	(9.698 / 11.545)
	=	1.518875	/	0.840017
	=	1.8081

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)
	=	(-1.253 / 11.545)	/	(-0.163 / 6.861)
	=	-0.108532	/	-0.023757
	=	4.5684

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 - (16.372 + 40.647) / 59.532)	/	(1 - (15.459 + 40.717) / 56.331)
	=	0.042213	/	0.002752
	=	15.339

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
	=	6.861	/	11.545
	=	0.5943

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))
	=	(0.603 / (0.603 + 40.717))	/	(0.134 / (0.134 + 40.647))
	=	0.014593	/	0.003286
	=	4.441

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)
	=	(0.715 / 6.861)	/	(0.076 / 11.545)
	=	0.104212	/	0.006583
	=	15.8305

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)
	=	((14.544 + 29.603) / 59.532)	/	((14.544 + 24.331) / 56.331)
	=	0.741568	/	0.690117
	=	1.0746

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
	=	(-2.205 - 0	-	0.327)	/	59.532
	=	-0.042532

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.

Jordan Steel has a M-score of 3.20 signals that the company is likely to be a manipulator.

Jordan Steel Beneish M-Score Related Terms

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Jordan Steel (AMM:JOST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Jordan Steel (AMM:JOST) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Scientific Islamic College Street, P.O Box 35165, Building Number 3, Al Mamar Al Thani, Amman, JOR, 11180

Website

http://www.jordansteelplc.com

Jordan Steel is a steel firm that specializes in the manufacturing of steel and iron products for the construction industry. The main activity of the company is to produce reinforcing steel and pull-through steel without heating to produce steel bars and for the production of iron skewers contributing to other companies, importing, exporting, marketing, concluding contracts and trade agreements, and borrowing the necessary funds from banks. The company's products include Concrete Reinforcement Steel Bars (Rebars), Flat and Square Bars, Standard Square Bars, and Plane Round Bars. It also manufactures steel billets and wire mesh products in different sizes.

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