Turk Hava Yollari AO (Turk Hava Yollari AO) Beneish M-Score : -1.73 (As of Apr. 25, 2024)

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What is Turk Hava Yollari AO 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.

Warning Sign:

Beneish M-Score -1.73 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TKHVF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85 Med: -2.34 Max: -0.66
Current: -1.73

During the past 13 years, the highest Beneish M-Score of Turk Hava Yollari AO was -0.66. The lowest was -2.85. And the median was -2.34.

Turk Hava Yollari AO Beneish M-Score Historical Data

The historical data trend for Turk Hava Yollari AO'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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Turk Hava Yollari AO Beneish M-Score Chart

Turk Hava Yollari AO Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.40

-0.66

-2.42

-1.71

-1.73

Turk Hava Yollari AO 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															-1.71	-2.09	-2.18	-2.37	-1.73

Competitive Comparison of Turk Hava Yollari AO's Beneish M-Score

For the Airlines subindustry, Turk Hava Yollari AO'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.

Turk Hava Yollari AO's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Turk Hava Yollari AO's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Turk Hava Yollari AO's Beneish M-Score falls into.

Turk Hava Yollari AO 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 Turk Hava Yollari AO 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 * 0.7708

0.528 * 1.0209

0.404 * 1.403

0.892 * 1.1264

0.115 * 0.9908

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1057

4.679 * -0.003612

0.327 * 0.9187

-2.41

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $866 Mil.
Revenue was 2398.971 + 6430.994 + 5660.085 + 4395.788 = $18,886 Mil.
Gross Profit was 262.056 + 2173.169 + 1414.747 + 654.37 = $4,504 Mil.
Total Current Assets was $8,702 Mil.
Total Assets was $36,113 Mil.
Property, Plant and Equipment(Net PPE) was $23,339 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,006 Mil.
Selling, General, & Admin. Expense(SGA) was $1,222 Mil.
Total Current Liabilities was $9,215 Mil.
Long-Term Debt & Capital Lease Obligation was $10,673 Mil.
Net Income was 2971.983 + 1953.41 + 698.03 + 235.29 = $5,859 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 828.335 + 1752.14 + 1889.903 + 1518.784 = $5,989 Mil.

Total Receivables was $998 Mil.
Revenue was 3133.758 + 6132.186 + 4440.459 + 3060.838 = $16,767 Mil.
Gross Profit was 761.877 + 1889.78 + 917.466 + 513.651 = $4,083 Mil.
Total Current Assets was $7,241 Mil.
Total Assets was $31,010 Mil.
Property, Plant and Equipment(Net PPE) was $21,278 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,811 Mil.
Selling, General, & Admin. Expense(SGA) was $982 Mil.
Total Current Liabilities was $8,256 Mil.
Long-Term Debt & Capital Lease Obligation was $10,334 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)
	=	(866.355 / 18885.838)	/	(997.891 / 16767.241)
	=	0.045873	/	0.059514
	=	0.7708

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)
	=	(4082.774 / 16767.241)	/	(4504.342 / 18885.838)
	=	0.243497	/	0.238504
	=	1.0209

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 - (8702.175 + 23339.428) / 36112.738)	/	(1 - (7240.85 + 21277.845) / 31010.368)
	=	0.112734	/	0.08035
	=	1.403

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
	=	18885.838	/	16767.241
	=	1.1264

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))
	=	(1810.856 / (1810.856 + 21277.845))	/	(2006.234 / (2006.234 + 23339.428))
	=	0.07843	/	0.079155
	=	0.9908

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)
	=	(1222.386 / 18885.838)	/	(981.542 / 16767.241)
	=	0.064725	/	0.058539
	=	1.1057

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)
	=	((10673.381 + 9215.034) / 36112.738)	/	((10333.681 + 8256.268) / 31010.368)
	=	0.550731	/	0.599475
	=	0.9187

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
	=	(5858.713 - 0	-	5989.162)	/	36112.738
	=	-0.003612

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.

Turk Hava Yollari AO has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.

Turk Hava Yollari AO Beneish M-Score Related Terms

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Turk Hava Yollari AO (Turk Hava Yollari AO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Turk Hava Yollari AO (GREY:TKHVF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TKHVY:USA THYAO:Turkey TU5A:Germany

Address

Havaalani Cad. No: 3/1, Genel Yonetim Binasi, 9th Floor, Yesilkoy, Bakirkoy, Istanbul, TUR, 34149

Website

https://www.turkishairlines.com

Turk Hava Yollari AO is a Turkish airline operator. It has one of the largest flight networks in the world, and transports passengers to many different regions. Additionally, it can provide long-haul direct cargo flights, and other logistics to serve a diverse range of customers. It has two operating segments: air transportation and aircraft technical maintenance operations. The majority of revenue is generated from transferring passengers and cargo (air transportation segment). The company owns several hangars to perform maintenance on different types of aircraft. Its geographical segments are Asia & Far East, Europe, Americas, Africa, and Middle East.