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Turk Hava Yollari AO (IST:THYAO) Beneish M-Score

: -1.73 (As of Today)
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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:

IST:THYAO' 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.

* Premium members only.

Turk Hava Yollari AO Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.71 -2.09 -2.18 -2.37 -1.73

Competitive Comparison

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 Beneish M-Score Distribution

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9665+0.528 * 1.0152+0.404 * 1.403+0.892 * 1.5845+0.115 * 1.085
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1024+4.679 * 0.014417-0.327 * 0.9187
=-1.73

* 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 ₺33,740 Mil.
Revenue was 69757.595 + 173630.917 + 134124.241 + 83515.352 = ₺461,028 Mil.
Gross Profit was 7620.108 + 58673.57 + 33524.548 + 12432.334 = ₺112,251 Mil.
Total Current Assets was ₺253,043 Mil.
Total Assets was ₺1,050,091 Mil.
Property, Plant and Equipment(Net PPE) was ₺678,667 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺48,474 Mil.
Selling, General, & Admin. Expense(SGA) was ₺29,384 Mil.
Total Current Liabilities was ₺267,956 Mil.
Long-Term Debt & Capital Lease Obligation was ₺310,362 Mil.
Net Income was 86419.707 + 52740.288 + 16540.861 + 4470.268 = ₺160,171 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₺0 Mil.
Cash Flow from Operations was 24086.433 + 47306.175 + 44784.099 + 28855.293 = ₺145,032 Mil.
Total Receivables was ₺22,031 Mil.
Revenue was 58467.595 + 112303.51 + 75454.237 + 44730.864 = ₺290,956 Mil.
Gross Profit was 14214.608 + 34609.025 + 15589.993 + 7506.458 = ₺71,920 Mil.
Total Current Assets was ₺135,095 Mil.
Total Assets was ₺578,571 Mil.
Property, Plant and Equipment(Net PPE) was ₺396,988 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺30,953 Mil.
Selling, General, & Admin. Expense(SGA) was ₺16,822 Mil.
Total Current Liabilities was ₺154,040 Mil.
Long-Term Debt & Capital Lease Obligation was ₺192,799 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)
=(33740 / 461028.105) / (22031 / 290956.206)
=0.073184 / 0.075719
=0.9665

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)
=(71920.084 / 290956.206) / (112250.56 / 461028.105)
=0.247185 / 0.243479
=1.0152

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 - (253043 + 678667) / 1050091) / (1 - (135095 + 396988) / 578571)
=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
=461028.105 / 290956.206
=1.5845

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))
=(30953 / (30953 + 396988)) / (48474.001 / (48474.001 + 678667))
=0.07233 / 0.066664
=1.085

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)
=(29384.077 / 461028.105) / (16821.96 / 290956.206)
=0.063736 / 0.057816
=1.1024

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)
=((310362 + 267956) / 1050091) / ((192799 + 154040) / 578571)
=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
=(160171.124 - 0 - 145032) / 1050091
=0.014417

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 -1.73 signals that the company is likely to be a manipulator.


Turk Hava Yollari AO Beneish M-Score Related Terms

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Turk Hava Yollari AO (IST:THYAO) Business Description

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

Turk Hava Yollari AO (IST:THYAO) Headlines

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