Far East Knitting & Dyeing Industries (DHA:FEKDIL) Beneish M-Score

: -3.79 (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 -3.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Far East Knitting & Dyeing Industries's Beneish M-Score or its related term are showing as below:

DHA:FEKDIL' s Beneish M-Score Range Over the Past 10 Years
Min: -17.34 Med: -2.33 Max: 17.83
Current: -3.79

During the past 10 years, the highest Beneish M-Score of Far East Knitting & Dyeing Industries was 17.83. The lowest was -17.34. And the median was -2.33.

Far East Knitting & Dyeing Industries Beneish M-Score Historical Data

The historical data trend for Far East Knitting & Dyeing Industries'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.

Far East Knitting & Dyeing Industries Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

4.02

-1.95

-2.41

-2.40

-17.34

Far East Knitting & Dyeing Industries 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																-2.59	-3.18	-17.34	-3.43	-3.79

Competitive Comparison

For the Apparel Manufacturing subindustry, Far East Knitting & Dyeing Industries'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.

Far East Knitting & Dyeing Industries Beneish M-Score Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Far East Knitting & Dyeing Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Far East Knitting & Dyeing Industries's Beneish M-Score falls into.

Far East Knitting & Dyeing Industries 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 Far East Knitting & Dyeing Industries 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 * 0.5347

0.528 * 1.036

0.404 * 0.4362

0.892 * 1.1799

0.115 * 0.9004

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.1703

4.679 * -0.136927

0.327 * 0.951

-3.79

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was BDT661 Mil.
Revenue was 1275.292 + 1402.249 + 2121.912 + 2217.94 = BDT7,017 Mil.
Gross Profit was 42.252 + 102.824 + 217.785 + 234.063 = BDT597 Mil.
Total Current Assets was BDT3,095 Mil.
Total Assets was BDT5,711 Mil.
Property, Plant and Equipment(Net PPE) was BDT2,337 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT136 Mil.
Selling, General, & Admin. Expense(SGA) was BDT191 Mil.
Total Current Liabilities was BDT1,360 Mil.
Long-Term Debt & Capital Lease Obligation was BDT240 Mil.
Net Income was -52.051 + -37.3 + 134.232 + 113.703 = BDT159 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was 120.987 + 768.618 + -38.878 + 89.799 = BDT941 Mil.

Total Receivables was BDT1,047 Mil.
Revenue was 1347.472 + 901.678 + 1445.07 + 2253.313 = BDT5,948 Mil.
Gross Profit was 153.549 + 51.339 + 146.524 + 172.726 = BDT524 Mil.
Total Current Assets was BDT3,048 Mil.
Total Assets was BDT6,047 Mil.
Property, Plant and Equipment(Net PPE) was BDT2,322 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT121 Mil.
Selling, General, & Admin. Expense(SGA) was BDT75 Mil.
Total Current Liabilities was BDT1,451 Mil.
Long-Term Debt & Capital Lease Obligation was BDT331 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)
	=	(660.683 / 7017.393)	/	(1047.288 / 5947.533)
	=	0.094149	/	0.176088
	=	0.5347

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)
	=	(524.138 / 5947.533)	/	(596.924 / 7017.393)
	=	0.088127	/	0.085063
	=	1.036

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 - (3094.802 + 2337.092) / 5710.664)	/	(1 - (3047.655 + 2322.276) / 6046.575)
	=	0.048816	/	0.111905
	=	0.4362

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
	=	7017.393	/	5947.533
	=	1.1799

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))
	=	(120.889 / (120.889 + 2322.276))	/	(135.899 / (135.899 + 2337.092))
	=	0.04948	/	0.054953
	=	0.9004

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)
	=	(191.247 / 7017.393)	/	(74.684 / 5947.533)
	=	0.027253	/	0.012557
	=	2.1703

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)
	=	((240.429 + 1359.832) / 5710.664)	/	((330.861 + 1450.853) / 6046.575)
	=	0.280223	/	0.294665
	=	0.951

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
	=	(158.584 - 0	-	940.526)	/	5710.664
	=	-0.136927

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.

Far East Knitting & Dyeing Industries has a M-score of -3.79 suggests that the company is unlikely to be a manipulator.

Far East Knitting & Dyeing Industries Beneish M-Score Related Terms

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Far East Knitting & Dyeing Industries (DHA:FEKDIL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Far East Knitting & Dyeing Industries Ltd (DHA:FEKDIL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Moyeen Centre, House No. 9/B, Road No.3, Gulshan-1, Dhaka, BGD, 1212

Website

https://www.fareastknit.com

Far East Knitting & Dyeing Industries Ltd operates a readymade composite knit garments industrial unit of international standard to carry on the business of knitting, dyeing, designing, manufacturing & marketing of readymade garments to deal in foreign markets. The company operates in three segments Garmenting, Fabrics, and Dyeing.

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