Al-Haj Textile Mills (DHA:AL-HAJTEX) Beneish M-Score

: -1.99 (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 -1.99 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:AL-HAJTEX' s Beneish M-Score Range Over the Past 10 Years
Min: -16.14 Med: -2.51 Max: 12.87
Current: -1.99

During the past 11 years, the highest Beneish M-Score of Al-Haj Textile Mills was 12.87. The lowest was -16.14. And the median was -2.51.

Al-Haj Textile Mills Beneish M-Score Historical Data

The historical data trend for Al-Haj Textile Mills'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.

Al-Haj Textile Mills Annual Data

Trend

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Beneish M-Score

-1.52

-3.85

-2.78

-0.79

-2.55

Al-Haj Textile Mills Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Beneish M-Score																-3.99	-2.47	-2.55	-2.05	-1.99

Competitive Comparison

For the Textile Manufacturing subindustry, Al-Haj Textile Mills'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.

Annual Data Quarterly Data

Al-Haj Textile Mills Beneish M-Score Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Al-Haj Textile Mills's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Al-Haj Textile Mills's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.

Al-Haj Textile Mills 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 Al-Haj Textile Mills 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 * 0.5268

0.528 * 0.5184

0.404 * 0.9551

0.892 * 1.8982

0.115 * 2.0894

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5724

4.679 * -0.0598

0.327 * 0.9917

-2.46

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was BDT1.0 Mil.
Revenue was 133.531 + 115.067 + 66.568 + 138.435 = BDT453.6 Mil.
Gross Profit was 2.421 + 9.287 + 17.709 + 5.787 = BDT35.2 Mil.
Total Current Assets was BDT877.4 Mil.
Total Assets was BDT939.6 Mil.
Property, Plant and Equipment(Net PPE) was BDT61.2 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT2.8 Mil.
Selling, General, & Admin. Expense(SGA) was BDT12.7 Mil.
Total Current Liabilities was BDT533.4 Mil.
Long-Term Debt & Capital Lease Obligation was BDT190.7 Mil.
Net Income was -4.683 + 3.56 + 13.579 + 4.117 = BDT16.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0.0 Mil.
Cash Flow from Operations was -16.917 + 5.146 + 0 + 84.561 = BDT72.8 Mil.

Total Receivables was BDT1.0 Mil.
Revenue was 98.257 + 48.212 + 33.047 + 59.449 = BDT239.0 Mil.
Gross Profit was 20.225 + -1.098 + -13.189 + 3.676 = BDT9.6 Mil.
Total Current Assets was BDT823.8 Mil.
Total Assets was BDT897.5 Mil.
Property, Plant and Equipment(Net PPE) was BDT72.6 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT7.2 Mil.
Selling, General, & Admin. Expense(SGA) was BDT11.7 Mil.
Total Current Liabilities was BDT537.0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT160.3 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)
	=	(0.998 / 453.601)	/	(0.998 / 238.965)
	=	0.00220017	/	0.00417634
	=	0.5268

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)
	=	(9.614 / 238.965)	/	(35.204 / 453.601)
	=	0.04023183	/	0.07761006
	=	0.5184

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 - (877.437 + 61.21) / 939.648)	/	(1 - (823.835 + 72.623) / 897.459)
	=	0.00106529	/	0.00111537
	=	0.9551

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
	=	453.601	/	238.965
	=	1.8982

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))
	=	(7.231 / (7.231 + 72.623))	/	(2.773 / (2.773 + 61.21))
	=	0.09055276	/	0.04333964
	=	2.0894

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)
	=	(12.679 / 453.601)	/	(11.67 / 238.965)
	=	0.02795188	/	0.0488356
	=	0.5724

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)
	=	((190.672 + 533.368) / 939.648)	/	((160.262 + 537.044) / 897.459)
	=	0.77054386	/	0.77697811
	=	0.9917

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
	=	(16.573 - 0	-	72.79)	/	939.648
	=	-0.0598

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.

Al-Haj Textile Mills has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

Al-Haj Textile Mills Beneish M-Score Related Terms

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Al-Haj Textile Mills (DHA:AL-HAJTEX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Al-Haj Textile Mills Ltd (DHA:AL-HAJTEX) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

66, Dilkusha Commercial Area, 4th Floor, Dhaka, BGD, 1000

Website

https://www.alhajtextilemills.com

Al-Haj Textile Mills Ltd is a Bangladesh based company primarily engaged in the manufacturing and sale of cotton yarns. It offers cotton, polyester spun, poly-viscose blend, poly-cotton blend, and viscose spun yarns. It also offers advanced, reasonable solutions for any size-reduction requirements including quarry, aggregate, and various kinds of minerals.

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