Ray Sigorta 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 Ray Sigorta 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 * 0.893 | + | 0.528 * 1 | + | 0.404 * 1.0387 | + | 0.892 * 2.3277 | + | 0.115 * 0.5722 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.7861 | + | 4.679 * -0.103985 | - | 0.327 * 0.3394 |
| = | -1.83 |
* 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 (Jun24) TTM: | Last Year (Jun23) TTM: |
Total Receivables was ₺4,879 Mil.
Revenue was 2719.818 + 2487.143 + 1970.752 + 1565.108 = ₺8,743 Mil.
Gross Profit was 2719.818 + 2487.143 + 1970.752 + 1565.108 = ₺8,743 Mil.
Total Current Assets was ₺0 Mil.
Total Assets was ₺15,536 Mil.
Property, Plant and Equipment(Net PPE) was ₺749 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺67 Mil.
Selling, General, & Admin. Expense(SGA) was ₺112 Mil.
Total Current Liabilities was ₺0 Mil.
Long-Term Debt & Capital Lease Obligation was ₺2 Mil.
Net Income was 152.142 + 924.17 + 123.638 + 427.853 = ₺1,628 Mil.
Non Operating Income was -51.813 + 46.56 + 200.192 + 105.235 = ₺300 Mil.
Cash Flow from Operations was 5800.378 + -1881.033 + -1197.688 + 221.475 = ₺2,943 Mil.
|
Total Receivables was ₺2,347 Mil.
Revenue was 1490.774 + 960.363 + 764.112 + 540.806 = ₺3,756 Mil.
Gross Profit was 1490.774 + 960.363 + 764.112 + 540.806 = ₺3,756 Mil.
Total Current Assets was ₺0 Mil.
Total Assets was ₺7,619 Mil.
Property, Plant and Equipment(Net PPE) was ₺638 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺31 Mil.
Selling, General, & Admin. Expense(SGA) was ₺27 Mil.
Total Current Liabilities was ₺0 Mil.
Long-Term Debt & Capital Lease Obligation was ₺2 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) |
| = | (4879.049 / 8742.821) | / | (2347.309 / 3756.055) |
| = | 0.558063 | / | 0.62494 |
| | = | 0.893 |
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) |
| = | (3756.055 / 3756.055) | / | (8742.821 / 8742.821) |
| = | 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 + 749.32) / 15535.88) | / | (1 - (0 + 637.642) / 7618.784) |
| = | 0.951768 | / | 0.916307 |
| | = | 1.0387 |
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 |
| = | 8742.821 | / | 3756.055 |
| | = | 2.3277 |
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)) |
| = | (31.209 / (31.209 + 637.642)) | / | (66.524 / (66.524 + 749.32)) |
| = | 0.046661 | / | 0.08154 |
| | = | 0.5722 |
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) |
| = | (112.292 / 8742.821) | / | (27.008 / 3756.055) |
| = | 0.012844 | / | 0.007191 |
| | = | 1.7861 |
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) |
| = | ((1.73 + 0) / 15535.88) | / | ((2.491 + 0) / 7618.784) |
| = | 0.000111 | / | 0.000327 |
| | = | 0.3394 |
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 |
| = | (1627.803 - 300.174 | - | 2943.132) | / | 15535.88 |
| | = | -0.103985 |
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.
Ray Sigorta AS has a M-score of -1.83 suggests that the company is unlikely to be a manipulator.
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