Coast Investment & Development Co (KUW:COAST) Beneish M-Score : -5.48 (As of May. 25, 2024)

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What is Coast Investment & Development 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 -5.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Coast Investment & Development Co's Beneish M-Score or its related term are showing as below:

KUW:COAST' s Beneish M-Score Range Over the Past 10 Years
Min: -11.48 Med: -1.92 Max: 11.17
Current: -5.48

During the past 13 years, the highest Beneish M-Score of Coast Investment & Development Co was 11.17. The lowest was -11.48. And the median was -1.92.

Coast Investment & Development Co Beneish M-Score Historical Data

The historical data trend for Coast Investment & Development 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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Coast Investment & Development Co Beneish M-Score Chart

Coast Investment & Development Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-11.48

-1.22

-2.76

Coast Investment & Development Co 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															-1.70	-2.34	-1.65	-2.76	-5.48

Competitive Comparison of Coast Investment & Development Co's Beneish M-Score

For the Asset Management subindustry, Coast Investment & Development 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.

Coast Investment & Development Co's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Coast Investment & Development Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Coast Investment & Development Co's Beneish M-Score falls into.

Coast Investment & Development 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 Coast Investment & Development 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 * 1

0.528 * -3.1627

0.404 * 0.9404

0.892 * 0.3055

0.115 * 1.1659

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 3.7075

4.679 * 0.060845

0.327 * 0.9949

-5.48

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was KWD0.00 Mil.
Revenue was 0.227 + 0.082 + 0.27 + 0.167 = KWD0.75 Mil.
Gross Profit was -0.012 + -0.201 + 0.102 + -0.042 = KWD-0.15 Mil.
Total Current Assets was KWD7.86 Mil.
Total Assets was KWD51.90 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.12 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.01 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.52 Mil.
Total Current Liabilities was KWD1.36 Mil.
Long-Term Debt & Capital Lease Obligation was KWD0.00 Mil.
Net Income was -0.219 + 3.171 + 0.385 + -0.394 = KWD2.94 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was -0.961 + -2.135 + 3.392 + -0.511 = KWD-0.22 Mil.

Total Receivables was KWD0.00 Mil.
Revenue was 0.174 + 0.308 + 0.881 + 1.079 = KWD2.44 Mil.
Gross Profit was -0.052 + 0.107 + 0.68 + 0.849 = KWD1.58 Mil.
Total Current Assets was KWD5.07 Mil.
Total Assets was KWD50.80 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.06 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.01 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.46 Mil.
Total Current Liabilities was KWD1.34 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)
	=	(0 / 0.746)	/	(0 / 2.442)
	=	0	/	0
	=	1

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)
	=	(1.584 / 2.442)	/	(-0.153 / 0.746)
	=	0.648649	/	-0.205094
	=	-3.1627

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 - (7.86 + 1.121) / 51.902)	/	(1 - (5.07 + 1.056) / 50.804)
	=	0.826962	/	0.879419
	=	0.9404

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
	=	0.746	/	2.442
	=	0.3055

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))
	=	(0.011 / (0.011 + 1.056))	/	(0.01 / (0.01 + 1.121))
	=	0.010309	/	0.008842
	=	1.1659

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)
	=	(0.521 / 0.746)	/	(0.46 / 2.442)
	=	0.698391	/	0.18837
	=	3.7075

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 + 1.362) / 51.902)	/	((0 + 1.34) / 50.804)
	=	0.026242	/	0.026376
	=	0.9949

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
	=	(2.943 - 0	-	-0.215)	/	51.902
	=	0.060845

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.

Coast Investment & Development Co has a M-score of -5.48 suggests that the company is unlikely to be a manipulator.

Coast Investment & Development Co Beneish M-Score Related Terms

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Coast Investment & Development Co (KUW:COAST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Coast Investment & Development Co (KUW:COAST) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Al Sharq Area, Shuhada Street, P.O. Box 26755, Coast Building, Al Asima Governate, Kuwait, KWT, 13128

Website

https://www.coast.com.kw

Coast Investment & Development Co is a financial institution. The coast is engaged in a variety of investment management activities such as private equity, asset management, and real estate investments both locally and internationally. It also offers a wide array of investment services including portfolio and fund management, advisory services, corporate finance, and online equity trading services. The company's geographical segment includes Kuwait and GCC; Europe and the USA. It derives the majority of its revenue from Kuwait and GCC.

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