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ACI (DHA:ACI) Beneish M-Score

: -2.35 (As of Today)
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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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:ACI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.19   Max: -1.51
Current: -2.35

During the past 13 years, the highest Beneish M-Score of ACI was -1.51. The lowest was -2.88. And the median was -2.19.


ACI Beneish M-Score Historical Data

The historical data trend for ACI'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.

* Premium members only.

ACI Annual Data
Trend Dec12 Dec13 Dec14 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.31 -2.88 -2.28 -2.15 -2.50

ACI 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.15 -2.25 -2.50 -2.53 -2.35

Competitive Comparison

For the Conglomerates subindustry, ACI'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.


ACI Beneish M-Score Distribution

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

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



ACI 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 ACI for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0874+0.528 * 1.0085+0.404 * 0.9316+0.892 * 1.1198+0.115 * 1.9806
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0058+4.679 * -0.02714-0.327 * 1.049
=-2.35

* 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 BDT20,853 Mil.
Revenue was 32038.033 + 30405.296 + 29778.372 + 28512.042 = BDT120,734 Mil.
Gross Profit was 7455.807 + 7322.21 + 6236.123 + 6512.215 = BDT27,526 Mil.
Total Current Assets was BDT56,008 Mil.
Total Assets was BDT97,441 Mil.
Property, Plant and Equipment(Net PPE) was BDT36,250 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT852 Mil.
Selling, General, & Admin. Expense(SGA) was BDT21,394 Mil.
Total Current Liabilities was BDT76,260 Mil.
Long-Term Debt & Capital Lease Obligation was BDT10,064 Mil.
Net Income was -483.888 + -157.892 + -383.127 + 25.377 = BDT-1,000 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was 0 + -2611.994 + 3639.081 + 617.928 = BDT1,645 Mil.
Total Receivables was BDT17,125 Mil.
Revenue was 30280.936 + 26784.046 + 27209.019 + 23543.973 = BDT107,818 Mil.
Gross Profit was 7009.766 + 6114.223 + 5918.387 + 5748.505 = BDT24,791 Mil.
Total Current Assets was BDT49,418 Mil.
Total Assets was BDT87,372 Mil.
Property, Plant and Equipment(Net PPE) was BDT32,964 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,571 Mil.
Selling, General, & Admin. Expense(SGA) was BDT18,995 Mil.
Total Current Liabilities was BDT64,782 Mil.
Long-Term Debt & Capital Lease Obligation was BDT9,005 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)
=(20852.637 / 120733.743) / (17125.447 / 107817.974)
=0.172716 / 0.158837
=1.0874

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)
=(24790.881 / 107817.974) / (27526.355 / 120733.743)
=0.229933 / 0.227992
=1.0085

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 - (56007.559 + 36249.935) / 97441.359) / (1 - (49418.361 + 32964.337) / 87372.472)
=0.0532 / 0.057109
=0.9316

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
=120733.743 / 107817.974
=1.1198

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))
=(1570.891 / (1570.891 + 32964.337)) / (852.078 / (852.078 + 36249.935))
=0.045487 / 0.022966
=1.9806

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)
=(21394.203 / 120733.743) / (18995.159 / 107817.974)
=0.177202 / 0.176178
=1.0058

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)
=((10064.497 + 76260.149) / 97441.359) / ((9004.535 + 64782.398) / 87372.472)
=0.885914 / 0.84451
=1.049

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
=(-999.53 - 0 - 1645.015) / 97441.359
=-0.02714

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.

ACI has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.


ACI (DHA:ACI) Business Description

Traded in Other Exchanges
N/A
Address
ACI Centre, 245 Tejgaon Industrial Area, Dhaka, BGD, 1208
ACI Ltd is a Bangladesh based company engaged in the manufacturing of pharmaceuticals, consumer brands, animal health products, and also markets along with agrochemicals, seeds, and other consumer brand items. The operating segments of the company are Pharmaceuticals, Crop Care and Public Health, Animal Health, Consumer Brands, Motors, Pure Flour, Retail Chain, Salt, Foods, HealthCare, and Premiaflex Plastics. The group generates the majority of the revenue from the Motors segment.