National Finance CoOG (MUS:NFCI) Beneish M-Score : -2.02 (As of Apr. 07, 2025)

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What is National Finance CoOG 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 -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for National Finance CoOG's Beneish M-Score or its related term are showing as below:

MUS:NFCI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.02 Max: -1.17
Current: -2.02

During the past 13 years, the highest Beneish M-Score of National Finance CoOG was -1.17. The lowest was -3.07. And the median was -2.02.

National Finance CoOG 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 National Finance CoOG 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 * 1.0006

0.892 * 1.1418

0.115 * 0.922

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.944

4.679 * 0.067796

0.327 * 0.942

-2.02

* 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 (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ر.ع0.00 Mil.
Revenue was 9.015 + 8.053 + 7.635 + 7.522 = ر.ع32.23 Mil.
Gross Profit was 9.015 + 8.053 + 7.635 + 7.522 = ر.ع32.23 Mil.
Total Current Assets was ر.ع0.00 Mil.
Total Assets was ر.ع594.99 Mil.
Property, Plant and Equipment(Net PPE) was ر.ع7.45 Mil.
Depreciation, Depletion and Amortization(DDA) was ر.ع1.14 Mil.
Selling, General, & Admin. Expense(SGA) was ر.ع0.83 Mil.
Total Current Liabilities was ر.ع0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ر.ع381.79 Mil.
Net Income was 2.897 + 3.432 + 2.424 + 3.101 = ر.ع11.85 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ر.ع0.00 Mil.
Cash Flow from Operations was 0.381 + -28.185 + 1.044 + -1.724 = ر.ع-28.48 Mil.

Total Receivables was ر.ع0.00 Mil.
Revenue was 7.019 + 7.365 + 6.459 + 7.379 = ر.ع28.22 Mil.
Gross Profit was 7.019 + 7.365 + 6.459 + 7.379 = ر.ع28.22 Mil.
Total Current Assets was ر.ع0.00 Mil.
Total Assets was ر.ع491.68 Mil.
Property, Plant and Equipment(Net PPE) was ر.ع6.43 Mil.
Depreciation, Depletion and Amortization(DDA) was ر.ع0.89 Mil.
Selling, General, & Admin. Expense(SGA) was ر.ع0.77 Mil.
Total Current Liabilities was ر.ع0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ر.ع334.92 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 / 32.225)	/	(0 / 28.222)
	=	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)
	=	(28.222 / 28.222)	/	(32.225 / 32.225)
	=	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 + 7.454) / 594.991)	/	(1 - (0 + 6.427) / 491.678)
	=	0.987472	/	0.986928
	=	1.0006

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
	=	32.225	/	28.222
	=	1.1418

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))
	=	(0.894 / (0.894 + 6.427))	/	(1.138 / (1.138 + 7.454))
	=	0.122114	/	0.132449
	=	0.922

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)
	=	(0.83 / 32.225)	/	(0.77 / 28.222)
	=	0.025756	/	0.027284
	=	0.944

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)
	=	((381.792 + 0) / 594.991)	/	((334.92 + 0) / 491.678)
	=	0.641677	/	0.681178
	=	0.942

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
	=	(11.854 - 0	-	-28.484)	/	594.991
	=	0.067796

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.

National Finance CoOG has a M-score of -2.02 suggests that the company is unlikely to be a manipulator.

National Finance CoOG Beneish M-Score Related Terms

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National Finance CoOG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » National Finance Co SAOG (MUS:NFCI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O. Box 1706, Ruwi, OMN, 112

Website

https://www.nationalfinance.co.om

National Finance Co SAOG is a financial institution. The company is engaged in the leasing business. It offers a wide range of financial products to corporate and retail customers with a key focus on Small and Medium Enterprises. The company offers vehicle finance, consumer durables finance, special schemes, equipment finance, corporate deposits, and factoring services.