United Gulf Investment BSC (BAH:UGIC) Beneish M-Score : 0.61 (As of May. 21, 2024)

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What is United Gulf Investment 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.

Warning Sign:

Beneish M-Score 0.61 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for United Gulf Investment BSC's Beneish M-Score or its related term are showing as below:

BAH:UGIC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.49 Med: -2.9 Max: 1.61
Current: 0.61

During the past 13 years, the highest Beneish M-Score of United Gulf Investment BSC was 1.61. The lowest was -4.49. And the median was -2.90.

United Gulf Investment BSC Beneish M-Score Historical Data

The historical data trend for United Gulf Investment 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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United Gulf Investment BSC Beneish M-Score Chart

United Gulf Investment BSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.27

-4.49

-2.84

-2.96

0.61

United Gulf Investment 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															-2.31	-7.31	-5.29	0.61	-

Competitive Comparison of United Gulf Investment BSC's Beneish M-Score

For the Asset Management subindustry, United Gulf Investment 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.

United Gulf Investment BSC's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, United Gulf Investment BSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where United Gulf Investment BSC's Beneish M-Score falls into.

United Gulf Investment 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 United Gulf Investment 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 * 1.0291

0.528 * 5.5031

0.404 * 0.9764

0.892 * 0.7927

0.115 * 1.0366

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * 0.025094

0.327 * 0.9618

0.04

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was BHD6.73 Mil.
Revenue was 10.868 + 9.43 + 7.646 + 9.864 = BHD37.81 Mil.
Gross Profit was 2.295 + -3.55 + 0.317 + 1.419 = BHD0.48 Mil.
Total Current Assets was BHD35.93 Mil.
Total Assets was BHD66.83 Mil.
Property, Plant and Equipment(Net PPE) was BHD28.48 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD2.54 Mil.
Selling, General, & Admin. Expense(SGA) was BHD0.00 Mil.
Total Current Liabilities was BHD11.29 Mil.
Long-Term Debt & Capital Lease Obligation was BHD14.88 Mil.
Net Income was 0.743 + -0.191 + -0.109 + 0.715 = BHD1.16 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BHD0.00 Mil.
Cash Flow from Operations was -0.259 + 1.177 + 0.228 + -1.665 = BHD-0.52 Mil.

Total Receivables was BHD8.25 Mil.
Revenue was 10.014 + 9.634 + 10.54 + 17.505 = BHD47.69 Mil.
Gross Profit was 2.384 + -6.759 + 1.499 + 6.215 = BHD3.34 Mil.
Total Current Assets was BHD33.97 Mil.
Total Assets was BHD65.76 Mil.
Property, Plant and Equipment(Net PPE) was BHD29.35 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD2.72 Mil.
Selling, General, & Admin. Expense(SGA) was BHD1.10 Mil.
Total Current Liabilities was BHD9.33 Mil.
Long-Term Debt & Capital Lease Obligation was BHD17.44 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)
	=	(6.733 / 37.808)	/	(8.253 / 47.693)
	=	0.178084	/	0.173044
	=	1.0291

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)
	=	(3.339 / 47.693)	/	(0.481 / 37.808)
	=	0.07001	/	0.012722
	=	5.5031

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 - (35.925 + 28.475) / 66.83)	/	(1 - (33.968 + 29.345) / 65.762)
	=	0.036361	/	0.03724
	=	0.9764

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
	=	37.808	/	47.693
	=	0.7927

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))
	=	(2.718 / (2.718 + 29.345))	/	(2.536 / (2.536 + 28.475))
	=	0.084771	/	0.081777
	=	1.0366

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 / 37.808)	/	(1.098 / 47.693)
	=	0	/	0.023022
	=	0

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)
	=	((14.882 + 11.29) / 66.83)	/	((17.444 + 9.333) / 65.762)
	=	0.391621	/	0.40718
	=	0.9618

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
	=	(1.158 - 0	-	-0.519)	/	66.83
	=	0.025094

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.

United Gulf Investment BSC has a M-score of 0.04 signals that the company is likely to be a manipulator.

United Gulf Investment BSC Beneish M-Score Related Terms

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United Gulf Investment BSC (BAH:UGIC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » United Gulf Investment Corp BSC (BAH:UGIC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Road 2832, Block 428, P.O. Box 10177, Almoayyed Tower, Office 3202, Building 2504, Al-Seef District, Manama, BHR

Website

https://www.ugiccorp.com

United Gulf Investment Corp BSC is engaged in property leasing, buying, and selling of properties for the company, third-grade industrial maintenance works, and investment in local industrial projects. The company's investment objective includes developing and promoting industrial, chemical, and energy-related projects, in the Gulf region, identifying and investing in direct investment opportunities and investing in listed stocks and other financial instruments. Its operating segment includes Smelting and Investment activities. The company generates maximum revenue from the Smelting segment. the company has two geographical segments; the Kingdom of Bahrain and the Kingdom of Saudi Arabia.