National Hotels Co BSC (BAH:NHOTEL) Beneish M-Score : -2.99 (As of May. 08, 2024)

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What is National Hotels Co BSC 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 -2.99 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BAH:NHOTEL' s Beneish M-Score Range Over the Past 10 Years
Min: -3 Med: -2.38 Max: -0.68
Current: -2.99

During the past 13 years, the highest Beneish M-Score of National Hotels Co BSC was -0.68. The lowest was -3.00. And the median was -2.38.

National Hotels Co BSC Beneish M-Score Historical Data

The historical data trend for National Hotels Co BSC'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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National Hotels Co BSC Beneish M-Score Chart

National Hotels Co BSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.37

-2.67

-2.33

-2.30

-2.55

National Hotels Co BSC 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															-2.00	-2.38	-2.44	-2.55	-2.99

Competitive Comparison of National Hotels Co BSC's Beneish M-Score

For the Lodging subindustry, National Hotels Co BSC'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.

National Hotels Co BSC's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, National Hotels Co BSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where National Hotels Co BSC's Beneish M-Score falls into.

National Hotels Co BSC 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 National Hotels Co BSC 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 * 0.8929

0.528 * 1.069

0.404 * 1.0008

0.892 * 0.9748

0.115 * 1.1673

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0744

4.679 * -0.003925

0.327 * 2.251

-2.99

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was BHD0.83 Mil.
Revenue was 2.052 + 1.787 + 1.534 + 1.752 = BHD7.13 Mil.
Gross Profit was 0.854 + 0.622 + 0.463 + 0.648 = BHD2.59 Mil.
Total Current Assets was BHD9.48 Mil.
Total Assets was BHD83.57 Mil.
Property, Plant and Equipment(Net PPE) was BHD33.71 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD2.17 Mil.
Selling, General, & Admin. Expense(SGA) was BHD0.69 Mil.
Total Current Liabilities was BHD2.92 Mil.
Long-Term Debt & Capital Lease Obligation was BHD0.00 Mil.
Net Income was 0.815 + 0.356 + 0.324 + 0.549 = BHD2.04 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BHD0.00 Mil.
Cash Flow from Operations was 0.633 + 0.601 + 0.413 + 0.725 = BHD2.37 Mil.

Total Receivables was BHD0.95 Mil.
Revenue was 1.999 + 2.003 + 1.682 + 1.625 = BHD7.31 Mil.
Gross Profit was 0.877 + 0.853 + 0.55 + 0.557 = BHD2.84 Mil.
Total Current Assets was BHD9.14 Mil.
Total Assets was BHD81.75 Mil.
Property, Plant and Equipment(Net PPE) was BHD33.14 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD2.52 Mil.
Selling, General, & Admin. Expense(SGA) was BHD0.65 Mil.
Total Current Liabilities was BHD1.27 Mil.
Long-Term Debt & Capital Lease Obligation was BHD0.00 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)
	=	(0.826 / 7.125)	/	(0.949 / 7.309)
	=	0.11593	/	0.12984
	=	0.8929

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)
	=	(2.837 / 7.309)	/	(2.587 / 7.125)
	=	0.388152	/	0.363088
	=	1.069

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 - (9.483 + 33.708) / 83.574)	/	(1 - (9.138 + 33.142) / 81.748)
	=	0.483201	/	0.482801
	=	1.0008

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
	=	7.125	/	7.309
	=	0.9748

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))
	=	(2.52 / (2.52 + 33.142))	/	(2.172 / (2.172 + 33.708))
	=	0.070663	/	0.060535
	=	1.1673

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)
	=	(0.685 / 7.125)	/	(0.654 / 7.309)
	=	0.09614	/	0.089479
	=	1.0744

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 + 2.918) / 83.574)	/	((0 + 1.268) / 81.748)
	=	0.034915	/	0.015511
	=	2.251

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
	=	(2.044 - 0	-	2.372)	/	83.574
	=	-0.003925

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.

National Hotels Co BSC has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.

National Hotels Co BSC Beneish M-Score Related Terms

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National Hotels Co BSC (BAH:NHOTEL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » National Hotels Co BSC (BAH:NHOTEL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Building 59, Road 1701, Block 317, P.O. Box 5243, Diplomatic Area, Manama, BHR, 317

Website

https://www.nhcbahrain.com

National Hotels Co BSC owns and manages refurbished rooms, bars, restaurants, banquet and conference facilities. It derives a majority of revenue from hotel rooms followed by food and beverages and serviced apartments. The operating segments of the company are Hotel Business, Office towers, and Investments and corporate. It generates maximum revenue from the Hotel Business segment. Hotel Business segment includes Room rental, food and beverage sales, conferences and events..

National Hotels Co BSC (BAH:NHOTEL) Headlines

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