Arcelik AS (IST:ARCLK) Beneish M-Score : -1.23 (As of May. 25, 2024)

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What is Arcelik AS 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 -1.23 higher than -1.78, which implies that the company might have manipulated its financial results.

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

IST:ARCLK' s Beneish M-Score Range Over the Past 10 Years
Min: -3 Med: -2.34 Max: -0.11
Current: -1.23

During the past 13 years, the highest Beneish M-Score of Arcelik AS was -0.11. The lowest was -3.00. And the median was -2.34.

Arcelik AS Beneish M-Score Historical Data

The historical data trend for Arcelik AS'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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Arcelik AS Beneish M-Score Chart

Arcelik AS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.62

-2.67

-1.41

-0.11

-2.08

Arcelik AS Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-0.37	-0.93	-0.99	-2.08	-1.23

Competitive Comparison of Arcelik AS's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Arcelik AS'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.

Arcelik AS's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Arcelik AS's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Arcelik AS's Beneish M-Score falls into.

Arcelik AS 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 Arcelik AS 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 * 1.919

0.528 * 0.9187

0.404 * 1.1148

0.892 * 0.9715

0.115 * 2.2464

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0418

4.679 * 0.057399

0.327 * 0.9216

-1.23

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₺74,098 Mil.
Revenue was 72265.241 + 112046.437 + 58217.883 + 46948.042 = ₺289,478 Mil.
Gross Profit was 21446.941 + 28886.659 + 19077.43 + 14997.665 = ₺84,409 Mil.
Total Current Assets was ₺180,875 Mil.
Total Assets was ₺279,544 Mil.
Property, Plant and Equipment(Net PPE) was ₺55,353 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺8,697 Mil.
Selling, General, & Admin. Expense(SGA) was ₺69,986 Mil.
Total Current Liabilities was ₺146,150 Mil.
Long-Term Debt & Capital Lease Obligation was ₺49,221 Mil.
Net Income was 395.111 + 5100.11 + 1000.911 + 491.857 = ₺6,988 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₺0 Mil.
Cash Flow from Operations was -4969.39 + -7837.468 + -199.324 + 3948.727 = ₺-9,057 Mil.

Total Receivables was ₺39,747 Mil.
Revenue was 68968.892 + 162448.402 + 34254.6 + 32304.633 = ₺297,977 Mil.
Gross Profit was 19841.88 + 40554.284 + 9861.201 + 9568.416 = ₺79,826 Mil.
Total Current Assets was ₺103,629 Mil.
Total Assets was ₺146,628 Mil.
Property, Plant and Equipment(Net PPE) was ₺22,620 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺9,928 Mil.
Selling, General, & Admin. Expense(SGA) was ₺69,152 Mil.
Total Current Liabilities was ₺93,446 Mil.
Long-Term Debt & Capital Lease Obligation was ₺17,747 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)
	=	(74097.835 / 289477.603)	/	(39746.73 / 297976.527)
	=	0.255971	/	0.133389
	=	1.919

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)
	=	(79825.781 / 297976.527)	/	(84408.695 / 289477.603)
	=	0.267893	/	0.29159
	=	0.9187

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 - (180875.304 + 55353.006) / 279544.217)	/	(1 - (103628.628 + 22619.718) / 146628.119)
	=	0.154952	/	0.13899
	=	1.1148

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
	=	289477.603	/	297976.527
	=	0.9715

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))
	=	(9927.706 / (9927.706 + 22619.718))	/	(8697.026 / (8697.026 + 55353.006))
	=	0.305023	/	0.135785
	=	2.2464

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)
	=	(69985.508 / 289477.603)	/	(69151.819 / 297976.527)
	=	0.241765	/	0.232071
	=	1.0418

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)
	=	((49220.623 + 146149.888) / 279544.217)	/	((17746.707 + 93446.406) / 146628.119)
	=	0.698889	/	0.758334
	=	0.9216

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
	=	(6987.989 - 0	-	-9057.455)	/	279544.217
	=	0.057399

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.

Arcelik AS has a M-score of -1.23 signals that the company is likely to be a manipulator.

Arcelik AS Beneish M-Score Related Terms

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Arcelik AS (IST:ARCLK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Arcelik AS (IST:ARCLK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ACKAY:USA RCAA:Germany

Address

Karaagac Caddesi No 2-6, Sutluce, Istanbul, TUR, 34445

Website

http://www.arcelikas.com

Arcelik AS is a Turkey-based company that is principally engaged in manufacturing household appliances. Its products consist of consumer durable goods, consumer electronics, kitchen accessories, and small home appliances. It provides after-sale services as well. The company generates most of its revenue from white products. The company has factories in a number of countries, such as Turkey, Romania, Russia, China, South Africa, and Thailand. It has a worldwide business presence, including Turkey, Europe, Africa, and the Middle East, with Turkey and Western Europe as the largest markets.

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