Allam Bank Sudan (DFM:ALSALAMSUDAN) Beneish M-Score

: -2.36 (As of Today)

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Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DFM:ALSALAMSUDAN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77 Med: -2.39 Max: 5.66
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Allam Bank Sudan was 5.66. The lowest was -3.77. And the median was -2.39.

Allam Bank Sudan 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 Allam Bank Sudan 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

0.528 * 1

0.404 * 1.5217

0.892 * 1.1446

0.115 * 0.5257

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4268

4.679 * 0.003706

0.327 * 1.3358

-2.36

* 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.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was د.إ0.00 Mil.
Revenue was د.إ49.56 Mil.
Gross Profit was د.إ49.56 Mil.
Total Current Assets was د.إ132.88 Mil.
Total Assets was د.إ606.93 Mil.
Property, Plant and Equipment(Net PPE) was د.إ6.64 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ0.60 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ0.39 Mil.
Total Current Liabilities was د.إ32.97 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ0.00 Mil.
Net Income was د.إ-2.42 Mil.
Gross Profit was د.إ0.00 Mil.
Cash Flow from Operations was د.إ-4.67 Mil.

Total Receivables was د.إ0.00 Mil.
Revenue was د.إ43.30 Mil.
Gross Profit was د.إ43.30 Mil.
Total Current Assets was د.إ165.27 Mil.
Total Assets was د.إ347.99 Mil.
Property, Plant and Equipment(Net PPE) was د.إ6.60 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ0.30 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ0.24 Mil.
Total Current Liabilities was د.إ14.15 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ0.00 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 / 49.561)	/	(0 / 43.301)
	=	0	/	0
	=	1

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)
	=	(43.301 / 43.301)	/	(49.561 / 49.561)
	=	1	/	1
	=	1

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 - (132.883 + 6.636) / 606.933)	/	(1 - (165.269 + 6.604) / 347.992)
	=	0.770125	/	0.506101
	=	1.5217

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
	=	49.561	/	43.301
	=	1.1446

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))
	=	(0.301 / (0.301 + 6.604))	/	(0.6 / (0.6 + 6.636))
	=	0.043592	/	0.082919
	=	0.5257

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)
	=	(0.392 / 49.561)	/	(0.24 / 43.301)
	=	0.007909	/	0.005543
	=	1.4268

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 + 32.972) / 606.933)	/	((0 + 14.152) / 347.992)
	=	0.054326	/	0.040668
	=	1.3358

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
	=	(-2.423 - 0	-	-4.672)	/	606.933
	=	0.003706

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.

Allam Bank Sudan has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.

Allam Bank Sudan Beneish M-Score Related Terms

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Allam Bank Sudan (DFM:ALSALAMSUDAN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Al Salam Bank Sudan (DFM:ALSALAMSUDAN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Aljamhoria street, Alhuria street junction, Khartoum, SDN

Website

http://www.alsalam-bank.net

Al Salam Bank Sudan is a banking corporation operating in Sudan. It is engaged in providing banking and financial services. The services provided by the company are retail banking, corporate banking, electronic services and others. The retail banking includes current account, saving the account, time deposit account, money transferring and lockers facility. The corporate banking includes a letter of credit, letter of guarantee, loans and advances, lease and others. The electronic services offered, includes mobile banking, SMS banking, cards and internet banking.