Pakistan State Oil Co (KAR:PSO) Beneish M-Score : -2.75 (As of Apr. 06, 2025)

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What is Pakistan State Oil Co 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.

Good Sign:

Beneish M-Score -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Pakistan State Oil Co's Beneish M-Score or its related term are showing as below:

KAR:PSO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -2.03 Max: -0.01
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Pakistan State Oil Co was -0.01. The lowest was -3.27. And the median was -2.03.

Pakistan State Oil Co Beneish M-Score Historical Data

The historical data trend for Pakistan State Oil Co'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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Pakistan State Oil Co Beneish M-Score Chart

Pakistan State Oil Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-1.34

-2.70

-1.27

-0.01

-2.61

Pakistan State Oil Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-1.62	-2.35	-2.61	-1.97	-2.75

Competitive Comparison of Pakistan State Oil Co's Beneish M-Score

For the Oil & Gas Refining & Marketing subindustry, Pakistan State Oil Co'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.

Pakistan State Oil Co's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Pakistan State Oil Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Pakistan State Oil Co's Beneish M-Score falls into.

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Pakistan State Oil Co 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 Pakistan State Oil Co 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 * 0.9782

0.528 * 1.3904

0.404 * 1.2449

0.892 * 0.9571

0.115 * 0.9021

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8827

4.679 * -0.113165

0.327 * 0.9765

-2.75

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ₨635,731 Mil.
Revenue was 891649.511 + 827219.869 + 940813.535 + 873633.853 = ₨3,533,317 Mil.
Gross Profit was 26261.943 + 25825.361 + 19340.786 + 23356.394 = ₨94,784 Mil.
Total Current Assets was ₨1,043,162 Mil.
Total Assets was ₨1,134,421 Mil.
Property, Plant and Equipment(Net PPE) was ₨55,614 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨5,788 Mil.
Selling, General, & Admin. Expense(SGA) was ₨7,228 Mil.
Total Current Liabilities was ₨846,745 Mil.
Long-Term Debt & Capital Lease Obligation was ₨17,789 Mil.
Net Income was 6298.581 + 2848.885 + 1678.506 + 4437.966 = ₨15,264 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 99884.6 + 18109.803 + -22445.953 + 48091.882 = ₨143,640 Mil.

Total Receivables was ₨679,002 Mil.
Revenue was 962430.526 + 965204.055 + 936843.649 + 827093.126 = ₨3,691,571 Mil.
Gross Profit was 2969.693 + 66226.938 + 20256.292 + 48238.89 = ₨137,692 Mil.
Total Current Assets was ₨1,087,587 Mil.
Total Assets was ₨1,167,438 Mil.
Property, Plant and Equipment(Net PPE) was ₨50,384 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨4,682 Mil.
Selling, General, & Admin. Expense(SGA) was ₨8,556 Mil.
Total Current Liabilities was ₨900,782 Mil.
Long-Term Debt & Capital Lease Obligation was ₨10,324 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)
	=	(635731.431 / 3533316.768)	/	(679001.756 / 3691571.356)
	=	0.179925	/	0.183933
	=	0.9782

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)
	=	(137691.813 / 3691571.356)	/	(94784.484 / 3533316.768)
	=	0.037299	/	0.026826
	=	1.3904

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 - (1043162.106 + 55613.549) / 1134421.407)	/	(1 - (1087586.95 + 50383.97) / 1167437.977)
	=	0.031422	/	0.025241
	=	1.2449

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
	=	3533316.768	/	3691571.356
	=	0.9571

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))
	=	(4682.061 / (4682.061 + 50383.97))	/	(5787.542 / (5787.542 + 55613.549))
	=	0.085026	/	0.094258
	=	0.9021

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)
	=	(7228.334 / 3533316.768)	/	(8555.958 / 3691571.356)
	=	0.002046	/	0.002318
	=	0.8827

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)
	=	((17789.455 + 846744.749) / 1134421.407)	/	((10324.249 + 900782.121) / 1167437.977)
	=	0.762093	/	0.780432
	=	0.9765

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
	=	(15263.938 - 0	-	143640.332)	/	1134421.407
	=	-0.113165

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.

Pakistan State Oil Co has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.

Pakistan State Oil Co Beneish M-Score Related Terms

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Pakistan State Oil Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Pakistan State Oil Co Ltd (KAR:PSO) » Definitions » Beneish M-Score

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Address

PSO House, Khayaban-e-Iqbal, Clifton, Karachi, SD, PAK, 75600

Website

https://www.psopk.com

Pakistan State Oil Co Ltd is engaged in the procurement, storage, and marketing of petroleum and related products. It also blends and markets lubricating oils. It comprises three reportable segments namely Petroleum products, Liquefied Natural Gas (LNG) and Others. The majority of the company's revenues are derived from the petroleum products segment.