Turkiye Is Bankasi 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 Turkiye Is Bankasi AS 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 * 0.9208 | + | 0.892 * 1.5291 | + | 0.115 * 1.0871 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.4608 | + | 4.679 * -0.12504 | - | 0.327 * 1.0228 |
| = | -2.70 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was ₺0 Mil.
Revenue was 64667.924 + 58421.578 + 65256.273 + 46102.833 = ₺234,449 Mil.
Gross Profit was 64667.924 + 58421.578 + 65256.273 + 46102.833 = ₺234,449 Mil.
Total Current Assets was ₺619,460 Mil.
Total Assets was ₺2,954,743 Mil.
Property, Plant and Equipment(Net PPE) was ₺44,796 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺3,426 Mil.
Selling, General, & Admin. Expense(SGA) was ₺1,806 Mil.
Total Current Liabilities was ₺13,729 Mil.
Long-Term Debt & Capital Lease Obligation was ₺531,748 Mil.
Net Income was 20398.73 + 20289.708 + 18711.353 + 12853.982 = ₺72,254 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₺0 Mil.
Cash Flow from Operations was 93444.311 + 195393.603 + 74135.473 + 78740.036 = ₺441,713 Mil.
|
Total Receivables was ₺0 Mil.
Revenue was 53885.478 + 39210.844 + 34494.599 + 25731.237 = ₺153,322 Mil.
Gross Profit was 53885.478 + 39210.844 + 34494.599 + 25731.237 = ₺153,322 Mil.
Total Current Assets was ₺246,866 Mil.
Total Assets was ₺1,715,432 Mil.
Property, Plant and Equipment(Net PPE) was ₺24,478 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺2,049 Mil.
Selling, General, & Admin. Expense(SGA) was ₺809 Mil.
Total Current Liabilities was ₺8,126 Mil.
Long-Term Debt & Capital Lease Obligation was ₺301,506 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 / 234448.608) | / | (0 / 153322.158) |
| = | 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) |
| = | (153322.158 / 153322.158) | / | (234448.608 / 234448.608) |
| = | 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 - (619459.682 + 44795.538) / 2954742.571) | / | (1 - (246865.9 + 24478.118) / 1715431.569) |
| = | 0.77519 | / | 0.841822 |
| | = | 0.9208 |
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 |
| = | 234448.608 | / | 153322.158 |
| | = | 1.5291 |
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)) |
| = | (2049.033 / (2049.033 + 24478.118)) | / | (3426.222 / (3426.222 + 44795.538)) |
| = | 0.077243 | / | 0.071051 |
| | = | 1.0871 |
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) |
| = | (1805.98 / 234448.608) | / | (808.529 / 153322.158) |
| = | 0.007703 | / | 0.005273 |
| | = | 1.4608 |
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) |
| = | ((531748.174 + 13729.348) / 2954742.571) | / | ((301505.846 + 8125.987) / 1715431.569) |
| = | 0.184611 | / | 0.180498 |
| | = | 1.0228 |
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 |
| = | (72253.773 - 0 | - | 441713.423) | / | 2954742.571 |
| | = | -0.12504 |
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.
Turkiye Is Bankasi AS has a M-score of -2.70 suggests that the company is unlikely to be a manipulator.
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