ELALF (El AL Israel Airlines) Beneish M-Score : -3.53 (As of Mar. 25, 2025)

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What is El AL Israel Airlines Beneish M-Score?

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 -3.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ELALF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.57 Med: -3 Max: -2.59
Current: -3.53

During the past 13 years, the highest Beneish M-Score of El AL Israel Airlines was -2.59. The lowest was -4.57. And the median was -3.00.

El AL Israel Airlines Beneish M-Score Historical Data

The historical data trend for El AL Israel Airlines'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.

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El AL Israel Airlines Beneish M-Score Chart

El AL Israel Airlines Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-4.57

-2.59

-3.67

-2.80

-3.53

El AL Israel Airlines Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.80	-2.98	-3.33	-3.39	-3.53

Competitive Comparison of El AL Israel Airlines's Beneish M-Score

For the Airlines subindustry, El AL Israel Airlines'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.

El AL Israel Airlines's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, El AL Israel Airlines's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where El AL Israel Airlines's Beneish M-Score falls into.

El AL Israel Airlines 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 El AL Israel Airlines 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 * 0.977

0.528 * 0.7363

0.404 * 0.8753

0.892 * 1.1881

0.115 * 0.9187

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0005

4.679 * -0.225983

0.327 * 0.8081

-3.53

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $373 Mil.
Revenue was 851.2 + 1003.5 + 629.8 + 738 = $3,223 Mil.
Gross Profit was 228.4 + 320.4 + 123.1 + 166.7 = $839 Mil.
Total Current Assets was $1,874 Mil.
Total Assets was $4,376 Mil.
Property, Plant and Equipment(Net PPE) was $2,169 Mil.
Depreciation, Depletion and Amortization(DDA) was $266 Mil.
Selling, General, & Admin. Expense(SGA) was $182 Mil.
Total Current Liabilities was $2,060 Mil.
Long-Term Debt & Capital Lease Obligation was $1,226 Mil.
Net Income was 130.3 + 185.2 + 58.2 + 79.3 = $453 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 355 + 320 + 391.2 + 375.7 = $1,442 Mil.

Total Receivables was $321 Mil.
Revenue was 677.8 + 695.5 + 839.1 + 500 = $2,712 Mil.
Gross Profit was 121.9 + 122.2 + 246.9 + 28.7 = $520 Mil.
Total Current Assets was $805 Mil.
Total Assets was $3,319 Mil.
Property, Plant and Equipment(Net PPE) was $2,225 Mil.
Depreciation, Depletion and Amortization(DDA) was $249 Mil.
Selling, General, & Admin. Expense(SGA) was $153 Mil.
Total Current Liabilities was $1,549 Mil.
Long-Term Debt & Capital Lease Obligation was $1,535 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)
	=	(372.5 / 3222.5)	/	(320.9 / 2712.4)
	=	0.115593	/	0.118309
	=	0.977

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)
	=	(519.7 / 2712.4)	/	(838.6 / 3222.5)
	=	0.191602	/	0.260233
	=	0.7363

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 - (1874.2 + 2168.9) / 4376)	/	(1 - (805.1 + 2225) / 3318.5)
	=	0.076074	/	0.086907
	=	0.8753

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
	=	3222.5	/	2712.4
	=	1.1881

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))
	=	(248.5 / (248.5 + 2225))	/	(266.3 / (266.3 + 2168.9))
	=	0.100465	/	0.109354
	=	0.9187

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)
	=	(182.1 / 3222.5)	/	(153.2 / 2712.4)
	=	0.056509	/	0.056481
	=	1.0005

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)
	=	((1225.7 + 2060.4) / 4376)	/	((1534.6 + 1549) / 3318.5)
	=	0.750937	/	0.929215
	=	0.8081

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
	=	(453 - 0	-	1441.9)	/	4376
	=	-0.225983

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.

El AL Israel Airlines has a M-score of -3.53 suggests that the company is unlikely to be a manipulator.

El AL Israel Airlines Beneish M-Score Related Terms

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El AL Israel Airlines Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » El AL Israel Airlines Ltd (OTCPK:ELALF) » Definitions » Beneish M-Score

Comparable Companies

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ELAL:Israel

Address

PO Box 41, Ben Gurion Airport, Lod, ISR, 7015001

Website

http://www.elal.co.il

El AL Israel Airlines Ltd is an international airline company which provides air transportation of passengers and cargo in Israel and overseas, by means of passenger aircraft and cargo aircraft. The company's passenger aircraft mainly operate scheduled flights as well as charter flights. The group is engaged in activities related to the air transport operations, such as the sale of duty-free products, food production, and supply mainly to the company's aircraft, providing security services, ongoing maintenance services and overall maintenance services to aircraft of other airlines at Ben Gurion Airport, and managing travel agencies abroad. The reporting segments of the company are air transport on passenger aircraft, and air transport on cargo plane.