Kuwait Reinsurance Co KSC (KUW:KUWAITRE) Beneish M-Score : 0.00 (As of Apr. 25, 2025)

View and export this data going back to 2004. Start your Free Trial

What is Kuwait Reinsurance Co KSC Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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.

The historical rank and industry rank for Kuwait Reinsurance Co KSC's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Kuwait Reinsurance Co KSC was 0.00. The lowest was 0.00. And the median was 0.00.

Kuwait Reinsurance Co KSC 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 Kuwait Reinsurance Co KSC 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* 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 (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was KWD3.49 Mil.
Revenue was 21.173 + 26.895 + 18.376 + 19.677 = KWD86.12 Mil.
Gross Profit was 21.173 + 26.895 + 18.376 + 19.677 = KWD86.12 Mil.
Total Current Assets was KWD0.00 Mil.
Total Assets was KWD231.55 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.44 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.07 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.17 Mil.
Total Current Liabilities was KWD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was KWD0.00 Mil.
Net Income was 4.629 + 2.623 + 2.823 + 4.053 = KWD14.13 Mil.
Non Operating Income was -0.271 + 0.731 + -0.036 + -0.142 = KWD0.28 Mil.
Cash Flow from Operations was 8.357 + 8.413 + 8.541 + 4.861 = KWD30.17 Mil.

Total Receivables was KWD3.32 Mil.
Revenue was 20.07 + 18.882 + 24.368 + 15.612 = KWD78.93 Mil.
Gross Profit was 20.07 + 18.882 + 24.368 + 15.612 = KWD78.93 Mil.
Total Current Assets was KWD0.00 Mil.
Total Assets was KWD198.82 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.42 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.05 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.91 Mil.
Total Current Liabilities was KWD0.00 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)
	=	(3.494 / 86.121)	/	(3.321 / 78.932)
	=	0.040571	/	0.042074
	=

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)
	=	(78.932 / 78.932)	/	(86.121 / 86.121)
	=	1	/	1
	=

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 - (0 + 1.435) / 231.551)	/	(1 - (0 + 1.421) / 198.821)
	=	0.993803	/	0.992853
	=

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
	=	86.121	/	78.932
	=

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))
	=	(0.054 / (0.054 + 1.421))	/	(0.071 / (0.071 + 1.435))
	=	0.03661	/	0.047145
	=

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)
	=	(1.168 / 86.121)	/	(0.906 / 78.932)
	=	0.013562	/	0.011478
	=

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 + 0) / 231.551)	/	((0 + 0) / 198.821)
	=	0	/	0
	=

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
	=	(14.128 - 0.282	-	30.172)	/	231.551
	=	-0.070507

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.

Kuwait Reinsurance Co KSC Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Kuwait Reinsurance Co KSC's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Kuwait Reinsurance Co KSC Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Kuwait Reinsurance Co KSC (KUW:KUWAITRE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Al-Shuhada's Street, Kuwait Return Tower- 8, 9, 13 Floors, Al Sharq District, Kuwait, KWT

Website

https://www.kuwaitre.com

Kuwait Reinsurance Co KSC operates as a reinsurance company. It provides traditional and tailored reinsurance solutions to its customers in the energy sector in Kuwait. The company provides tailored risk solutions for a variety of industries. Their operating segments include Fire, General Accident, Marine, Energy, Aviation, and life. The majority of its revenue is derived from its fire insurance business. The company's activities are spread across Kuwait, the Middle East, and North Africa.