Livestock Transport & Trading Co (KUW:CATTL) Beneish M-Score : -3.42 (As of Sep. 21, 2024)

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What is Livestock Transport & Trading 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 -3.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Livestock Transport & Trading Co's Beneish M-Score or its related term are showing as below:

KUW:CATTL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.26 Med: -3.02 Max: -1.56
Current: -3.42

During the past 13 years, the highest Beneish M-Score of Livestock Transport & Trading Co was -1.56. The lowest was -4.26. And the median was -3.02.

Livestock Transport & Trading Co Beneish M-Score Historical Data

The historical data trend for Livestock Transport & Trading 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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Livestock Transport & Trading Co Beneish M-Score Chart

Livestock Transport & Trading Co Annual Data

Trend

Dec12

Dec13

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.28

-3.03

-2.99

-3.18

-3.57

Livestock Transport & Trading Co Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-3.23	-3.02	-3.57	-3.02	-3.42

Competitive Comparison of Livestock Transport & Trading Co's Beneish M-Score

For the Food Distribution subindustry, Livestock Transport & Trading 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.

Livestock Transport & Trading Co's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Livestock Transport & Trading Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Livestock Transport & Trading Co's Beneish M-Score falls into.

Livestock Transport & Trading 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 Livestock Transport & Trading 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 * 0.8183

0.528 * 0.7325

0.404 * 1.0215

0.892 * 1.0805

0.115 * 0.8693

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0448

4.679 * -0.160295

0.327 * 0.8207

-3.42

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was KWD9.59 Mil.
Revenue was 13.491 + 12.32 + 12.563 + 8.237 = KWD46.61 Mil.
Gross Profit was 1.854 + 2.534 + 3.219 + 0.503 = KWD8.11 Mil.
Total Current Assets was KWD18.15 Mil.
Total Assets was KWD53.08 Mil.
Property, Plant and Equipment(Net PPE) was KWD34.09 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD4.81 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.73 Mil.
Total Current Liabilities was KWD6.97 Mil.
Long-Term Debt & Capital Lease Obligation was KWD13.40 Mil.
Net Income was 0.083 + 0.331 + 1.343 + -1.085 = KWD0.67 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 5.467 + -1.407 + 3.37 + 1.75 = KWD9.18 Mil.

Total Receivables was KWD10.85 Mil.
Revenue was 13.311 + 12.12 + 10.579 + 7.13 = KWD43.14 Mil.
Gross Profit was 2.163 + 2.149 + 1.084 + 0.102 = KWD5.50 Mil.
Total Current Assets was KWD22.96 Mil.
Total Assets was KWD59.90 Mil.
Property, Plant and Equipment(Net PPE) was KWD36.02 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD4.33 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.53 Mil.
Total Current Liabilities was KWD12.98 Mil.
Long-Term Debt & Capital Lease Obligation was KWD15.04 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)
	=	(9.591 / 46.611)	/	(10.848 / 43.14)
	=	0.205767	/	0.25146
	=	0.8183

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)
	=	(5.498 / 43.14)	/	(8.11 / 46.611)
	=	0.127446	/	0.173993
	=	0.7325

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 - (18.154 + 34.092) / 53.077)	/	(1 - (22.962 + 36.019) / 59.899)
	=	0.015656	/	0.015326
	=	1.0215

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
	=	46.611	/	43.14
	=	1.0805

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))
	=	(4.333 / (4.333 + 36.019))	/	(4.805 / (4.805 + 34.092))
	=	0.10738	/	0.123531
	=	0.8693

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)
	=	(1.726 / 46.611)	/	(1.529 / 43.14)
	=	0.03703	/	0.035443
	=	1.0448

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)
	=	((13.403 + 6.969) / 53.077)	/	((15.035 + 12.978) / 59.899)
	=	0.38382	/	0.467671
	=	0.8207

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
	=	(0.672 - 0	-	9.18)	/	53.077
	=	-0.160295

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.

Livestock Transport & Trading Co has a M-score of -3.42 suggests that the company is unlikely to be a manipulator.

Livestock Transport & Trading Co Beneish M-Score Related Terms

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Livestock Transport & Trading Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Livestock Transport & Trading Co (KUW:CATTL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sulaibiya Agricultural Area, Block 12, P.O. Box 23727, Kuwait, KWT, 13098

Website

https://www.almawashi.com.kw

Livestock Transport & Trading Co is engaged in livestock import & export business. It operates in three segments: Commercial, which includes purchasing, transporting, ranching, and selling the live and slaughtered sheep and all skins, intestines, and fertilizers, and also purchasing and selling fodder and chilled & frozen meat in wholesale and retail; Food processing segment includes meat processing and its classification in all products and selling it in wholesale; and Investments segment include investment portfolios managed by specialized companies and deposits. It generates the majority of its revenue from the Commercial segment. Its geographical segments are Kuwait, UAE, Australia, and South Africa, of which Kuwait accounts for most of its revenue.

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