Doric Nimrod Air Two (LSE:DNA2) Beneish M-Score : -1.83 (As of Jan. 18, 2025)

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What is Doric Nimrod Air Two 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.

Good Sign:

Beneish M-Score -1.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Doric Nimrod Air Two's Beneish M-Score or its related term are showing as below:

LSE:DNA2' s Beneish M-Score Range Over the Past 10 Years
Min: -4.73 Med: -3.39 Max: 2.82
Current: -1.83

During the past 13 years, the highest Beneish M-Score of Doric Nimrod Air Two was 2.82. The lowest was -4.73. And the median was -3.39.

Doric Nimrod Air Two 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 Doric Nimrod Air Two 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 * 1

0.404 * 1.4282

0.892 * 0.8699

0.115 * 0.7835

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2278

4.679 * 0.094171

0.327 * 0.3485

-1.83

* 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 (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was £0.00 Mil.
Revenue was £106.37 Mil.
Gross Profit was £106.37 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £203.79 Mil.
Property, Plant and Equipment(Net PPE) was £171.02 Mil.
Depreciation, Depletion and Amortization(DDA) was £44.77 Mil.
Selling, General, & Admin. Expense(SGA) was £0.88 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £2.24 Mil.
Net Income was £58.22 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £39.03 Mil.

Total Receivables was £0.00 Mil.
Revenue was £122.28 Mil.
Gross Profit was £122.28 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £310.66 Mil.
Property, Plant and Equipment(Net PPE) was £275.68 Mil.
Depreciation, Depletion and Amortization(DDA) was £53.50 Mil.
Selling, General, & Admin. Expense(SGA) was £0.82 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £9.79 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 / 106.365)	/	(0 / 122.275)
	=	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)
	=	(122.275 / 122.275)	/	(106.365 / 106.365)
	=	1	/	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 + 171.019) / 203.788)	/	(1 - (0 + 275.68) / 310.656)
	=	0.160799	/	0.112588
	=	1.4282

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
	=	106.365	/	122.275
	=	0.8699

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))
	=	(53.502 / (53.502 + 275.68))	/	(44.765 / (44.765 + 171.019))
	=	0.16253	/	0.207453
	=	0.7835

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)
	=	(0.879 / 106.365)	/	(0.823 / 122.275)
	=	0.008264	/	0.006731
	=	1.2278

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)
	=	((2.239 + 0) / 203.788)	/	((9.793 + 0) / 310.656)
	=	0.010987	/	0.031524
	=	0.3485

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
	=	(58.216 - 0	-	39.025)	/	203.788
	=	0.094171

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.

Doric Nimrod Air Two has a M-score of -1.83 suggests that the company is unlikely to be a manipulator.

Doric Nimrod Air Two Beneish M-Score Related Terms

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Doric Nimrod Air Two Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Doric Nimrod Air Two Ltd (LSE:DNA2) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Admiral Park, Ground Floor, Dorey Court, Saint Peter Port, GGY, GY1 2HT

Website

http://www.dnairtwo.com

Doric Nimrod Air Two Ltd is a Guernsey-domiciled company. Its investment objective is to obtain income returns and a capital return for its shareholders by acquiring, leasing, and then selling aircraft. The company has seven Airbus A380-861 aircraft two of which are sold and the rest are on long-term leases with Emirates Airlines. The Group is engaged in a single segment of business, acquiring, leasing, and then selling of Aircraft.