Metal & Recycling Co (KUW:MRC) Beneish M-Score : -2.42 (As of Jun. 17, 2024)

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What is Metal & Recycling 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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KUW:MRC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24 Med: -2.93 Max: -1.93
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Metal & Recycling Co was -1.93. The lowest was -4.24. And the median was -2.93.

Metal & Recycling Co Beneish M-Score Historical Data

The historical data trend for Metal & Recycling 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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Metal & Recycling Co Beneish M-Score Chart

Metal & Recycling Co Annual Data

Trend

Dec12

Dec13

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.34

-3.43

-2.90

-2.77

-2.28

Metal & Recycling 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															-2.30	-2.14	-3.13	-2.28	-2.42

Competitive Comparison of Metal & Recycling Co's Beneish M-Score

For the Waste Management subindustry, Metal & Recycling 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.

Metal & Recycling Co's Beneish M-Score Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Metal & Recycling Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Metal & Recycling Co's Beneish M-Score falls into.

Metal & Recycling 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 Metal & Recycling 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 * 0.913

0.528 * 0.9936

0.404 * 0.8626

0.892 * 1.2183

0.115 * 1.0535

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.998

4.679 * 0.004814

0.327 * 1.0689

-2.42

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was KWD5.28 Mil.
Revenue was 3.745 + 3.796 + 3.613 + 3.221 = KWD14.38 Mil.
Gross Profit was 1.078 + 0.803 + 0.868 + 1.041 = KWD3.79 Mil.
Total Current Assets was KWD12.58 Mil.
Total Assets was KWD31.37 Mil.
Property, Plant and Equipment(Net PPE) was KWD10.14 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD1.05 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.69 Mil.
Total Current Liabilities was KWD11.16 Mil.
Long-Term Debt & Capital Lease Obligation was KWD8.88 Mil.
Net Income was 0 + 0.043 + 0.046 + 0.134 = KWD0.22 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was -0.185 + 0.087 + 0.516 + -0.346 = KWD0.07 Mil.

Total Receivables was KWD4.74 Mil.
Revenue was 3.06 + 3.124 + 2.793 + 2.822 = KWD11.80 Mil.
Gross Profit was 0.857 + 0.654 + 0.752 + 0.828 = KWD3.09 Mil.
Total Current Assets was KWD10.43 Mil.
Total Assets was KWD27.09 Mil.
Property, Plant and Equipment(Net PPE) was KWD8.00 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.88 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.57 Mil.
Total Current Liabilities was KWD7.92 Mil.
Long-Term Debt & Capital Lease Obligation was KWD8.27 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)
	=	(5.276 / 14.375)	/	(4.743 / 11.799)
	=	0.367026	/	0.401983
	=	0.913

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)
	=	(3.091 / 11.799)	/	(3.79 / 14.375)
	=	0.261971	/	0.263652
	=	0.9936

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 - (12.583 + 10.135) / 31.366)	/	(1 - (10.432 + 8.001) / 27.092)
	=	0.275713	/	0.319615
	=	0.8626

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
	=	14.375	/	11.799
	=	1.2183

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))
	=	(0.879 / (0.879 + 8.001))	/	(1.051 / (1.051 + 10.135))
	=	0.098986	/	0.093957
	=	1.0535

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)
	=	(0.687 / 14.375)	/	(0.565 / 11.799)
	=	0.047791	/	0.047885
	=	0.998

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)
	=	((8.882 + 11.155) / 31.366)	/	((8.274 + 7.917) / 27.092)
	=	0.638813	/	0.59763
	=	1.0689

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
	=	(0.223 - 0	-	0.072)	/	31.366
	=	0.004814

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.

Metal & Recycling Co has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.

Metal & Recycling Co Beneish M-Score Related Terms

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Metal & Recycling Co (KUW:MRC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Metal & Recycling Co (KUW:MRC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Amghara Industrial Area, Block 13, Plot Number 800024, Unit Number 2, Next to Kuwait Municipality, Kuwait City, KWT

Website

http://www.mrckw.com

Metal & Recycling Co is a Kuwait based eco-industrial company. It principally offers sustainable waste management, recycling and industrial solutions to government, oil and gas, petrochemicals, manufacturing and commercial clients.