Automated Systems Company (K.S.C.C) (KUW:ASC) Beneish M-Score : 0.34 (As of Jun. 16, 2024)

View and export this data going back to 2002. Start your Free Trial

What is Automated Systems Company (K.S.C.C) 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 0.34 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Automated Systems Company (K.S.C.C)'s Beneish M-Score or its related term are showing as below:

KUW:ASC' s Beneish M-Score Range Over the Past 10 Years
Min: -15.09 Med: -2.79 Max: 1.18
Current: 0.34

During the past 13 years, the highest Beneish M-Score of Automated Systems Company (K.S.C.C) was 1.18. The lowest was -15.09. And the median was -2.79.

Automated Systems Company (K.S.C.C) Beneish M-Score Historical Data

The historical data trend for Automated Systems Company (K.S.C.C)'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.

Automated Systems Company (K.S.C.C) Beneish M-Score Chart

Automated Systems Company (K.S.C.C) Annual Data

Trend

Dec13

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.58

-15.09

-2.56

-2.81

0.36

Automated Systems Company (K.S.C.C) 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															-2.98	-2.85	0.33	0.36	0.34

Competitive Comparison of Automated Systems Company (K.S.C.C)'s Beneish M-Score

For the Software - Infrastructure subindustry, Automated Systems Company (K.S.C.C)'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.

Automated Systems Company (K.S.C.C)'s Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Automated Systems Company (K.S.C.C)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Automated Systems Company (K.S.C.C)'s Beneish M-Score falls into.

Automated Systems Company (K.S.C.C) 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 Automated Systems Company (K.S.C.C) 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 * 0.8766

0.528 * 0.6165

0.404 * 8.2957

0.892 * 1.1446

0.115 * 1.268

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7591

4.679 * 0.005911

0.327 * 1.1203

0.34

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was KWD2.07 Mil.
Revenue was 0.994 + 1.043 + 0.919 + 0.914 = KWD3.87 Mil.
Gross Profit was 0.069 + 0.154 + 0.087 + 0.143 = KWD0.45 Mil.
Total Current Assets was KWD12.56 Mil.
Total Assets was KWD13.70 Mil.
Property, Plant and Equipment(Net PPE) was KWD0.11 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.05 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.77 Mil.
Total Current Liabilities was KWD1.16 Mil.
Long-Term Debt & Capital Lease Obligation was KWD0.00 Mil.
Net Income was 0.015 + 0.044 + 0.006 + 0.018 = KWD0.08 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 0.541 + -0.226 + -0.32 + 0.007 = KWD0.00 Mil.

Total Receivables was KWD2.07 Mil.
Revenue was 0.916 + 0.849 + 0.846 + 0.77 = KWD3.38 Mil.
Gross Profit was 0.071 + 0.015 + 0.094 + 0.064 = KWD0.24 Mil.
Total Current Assets was KWD12.46 Mil.
Total Assets was KWD12.69 Mil.
Property, Plant and Equipment(Net PPE) was KWD0.12 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.08 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.89 Mil.
Total Current Liabilities was KWD0.96 Mil.
Long-Term Debt & Capital Lease Obligation was KWD0.00 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)
	=	(2.072 / 3.87)	/	(2.065 / 3.381)
	=	0.535401	/	0.610766
	=	0.8766

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)
	=	(0.244 / 3.381)	/	(0.453 / 3.87)
	=	0.072168	/	0.117054
	=	0.6165

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 - (12.557 + 0.107) / 13.703)	/	(1 - (12.459 + 0.116) / 12.691)
	=	0.075823	/	0.00914
	=	8.2957

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
	=	3.87	/	3.381
	=	1.1446

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))
	=	(0.075 / (0.075 + 0.116))	/	(0.048 / (0.048 + 0.107))
	=	0.39267	/	0.309677
	=	1.268

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)
	=	(0.769 / 3.87)	/	(0.885 / 3.381)
	=	0.198708	/	0.261757
	=	0.7591

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)
	=	((0 + 1.16) / 13.703)	/	((0 + 0.959) / 12.691)
	=	0.084653	/	0.075565
	=	1.1203

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
	=	(0.083 - 0	-	0.002)	/	13.703
	=	0.005911

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.

Automated Systems Company (K.S.C.C) has a M-score of 0.34 signals that the company is likely to be a manipulator.

Automated Systems Company (K.S.C.C) Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Automated Systems Company (K.S.C.C)'s Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Automated Systems Company (K.S.C.C) (KUW:ASC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Automated Systems Company Ltd (K.S.C.C) (KUW:ASC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Free zone, Future Area, P.O.Box 27159, Plot No. 28B / 29B, Safat, Kuwait, KWT, 13132

Website

http://www.asc-me.net

Automated Systems Company Ltd (K.S.C.C) operates in the IT (information technology) sector. It provides full end-to-end solution starting from cabling and network infrastructure up to the level of enterprise resource planning (ERP) implementation through specialized engineers. Its business activities are divided into three divisions including Global Distribution Systems, Services & Solutions and Engineering Solutions. The company offers various services including systems integration, in-house developed application and mobility solutions, IT managed services, consulting services, cloud computing, among others.