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Southeast Bank (DHA:SOUTHEASTB) Beneish M-Score : -2.37 (As of Jun. 20, 2025)


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What is Southeast Bank Beneish M-Score?

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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:SOUTHEASTB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89   Med: -2.58   Max: -2.05
Current: -2.37

During the past 13 years, the highest Beneish M-Score of Southeast Bank was -2.05. The lowest was -2.89. And the median was -2.58.


Southeast Bank 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 Southeast Bank 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+0.528 * 1+0.404 * 1.0016+0.892 * 1.0874+0.115 * 1.055
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.511+4.679 * -0.015248-0.327 * 0.9496
=-2.37

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was BDT0 Mil.
Revenue was 4096.571 + 4038.437 + 4760.763 + 4698.007 = BDT17,594 Mil.
Gross Profit was 4096.571 + 4038.437 + 4760.763 + 4698.007 = BDT17,594 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT552,761 Mil.
Property, Plant and Equipment(Net PPE) was BDT10,238 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT864 Mil.
Selling, General, & Admin. Expense(SGA) was BDT221 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT32,035 Mil.
Net Income was 539.992 + -1134.578 + 347.277 + 299.344 = BDT52 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was -2071.479 + 20452.243 + -5286.799 + -4613.685 = BDT8,480 Mil.
Total Receivables was BDT0 Mil.
Revenue was 3419.447 + 4726.665 + 3893.776 + 4140.437 = BDT16,180 Mil.
Gross Profit was 3419.447 + 4726.665 + 3893.776 + 4140.437 = BDT16,180 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT523,154 Mil.
Property, Plant and Equipment(Net PPE) was BDT10,514 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT940 Mil.
Selling, General, & Admin. Expense(SGA) was BDT398 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT31,926 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 / 17593.778) / (0 / 16180.325)
=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)
=(16180.325 / 16180.325) / (17593.778 / 17593.778)
=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 - (0 + 10238.115) / 552761.094) / (1 - (0 + 10513.787) / 523153.527)
=0.981478 / 0.979903
=1.0016

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
=17593.778 / 16180.325
=1.0874

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))
=(940.052 / (940.052 + 10513.787)) / (863.674 / (863.674 + 10238.115))
=0.082073 / 0.077796
=1.055

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)
=(220.953 / 17593.778) / (397.701 / 16180.325)
=0.012559 / 0.024579
=0.511

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)
=((32034.844 + 0) / 552761.094) / ((31926.367 + 0) / 523153.527)
=0.057954 / 0.061027
=0.9496

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
=(52.035 - 0 - 8480.28) / 552761.094
=-0.015248

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.

Southeast Bank has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.


Southeast Bank Beneish M-Score Related Terms

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Southeast Bank Business Description

Traded in Other Exchanges
N/A
Address
Eunoos Trade Centre (Level 2,3,4,6,16 & 17), 52-53, Dilkusha Commercial Area, Dhaka, BGD, 1000
Southeast Bank PLC is a commercial bank. The company provides services for all commercial banking needs of the customers, which includes deposit banking, loans, and advances, export-import financing, inland, and international remittance facility, etc.