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Custodian Investment (NSA:CUSTODIAN) Beneish M-Score : 0.00 (As of Dec. 15, 2024)


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What is Custodian Investment 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 Custodian Investment's Beneish M-Score or its related term are showing as below:

During the past 12 years, the highest Beneish M-Score of Custodian Investment was -1.23. The lowest was -1325.46. And the median was -2.31.


Custodian Investment 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 Custodian Investment for today is based on a combination of the following eight different indices:

M=-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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was ₦6,925 Mil.
Revenue was 63773.795 + 48544.709 + 26248.469 + 18425.691 = ₦156,993 Mil.
Gross Profit was 63773.795 + 48544.709 + 26248.469 + 18425.691 = ₦156,993 Mil.
Total Current Assets was ₦0 Mil.
Total Assets was ₦389,016 Mil.
Property, Plant and Equipment(Net PPE) was ₦14,501 Mil.
Depreciation, Depletion and Amortization(DDA) was ₦912 Mil.
Selling, General, & Admin. Expense(SGA) was ₦4,533 Mil.
Total Current Liabilities was ₦0 Mil.
Long-Term Debt & Capital Lease Obligation was ₦0 Mil.
Net Income was 21944.314 + 11618.846 + 10565.106 + 7485.859 = ₦51,614 Mil.
Non Operating Income was 16224.259 + 6970.637 + 6124.758 + 10597.08 = ₦39,917 Mil.
Cash Flow from Operations was -5475.178 + 13716.41 + 31445.939 + 5290.062 = ₦44,977 Mil.
Total Receivables was ₦4,990 Mil.
Revenue was 22414.48 + 32016.076 + 14183.782 + 7124.323 = ₦75,739 Mil.
Gross Profit was 22414.48 + 32016.076 + 14183.782 + 7124.323 = ₦75,739 Mil.
Total Current Assets was ₦0 Mil.
Total Assets was ₦254,692 Mil.
Property, Plant and Equipment(Net PPE) was ₦13,500 Mil.
Depreciation, Depletion and Amortization(DDA) was ₦825 Mil.
Selling, General, & Admin. Expense(SGA) was ₦4,611 Mil.
Total Current Liabilities was ₦0 Mil.
Long-Term Debt & Capital Lease Obligation was ₦0 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)
=(6925.417 / 156992.664) / (4990.117 / 75738.661)
=0.044113 / 0.065886
=

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)
=(75738.661 / 75738.661) / (156992.664 / 156992.664)
=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 + 14501.093) / 389015.956) / (1 - (0 + 13500.425) / 254691.731)
=0.962724 / 0.946993
=

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
=156992.664 / 75738.661
=

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))
=(825.235 / (825.235 + 13500.425)) / (911.519 / (911.519 + 14501.093))
=0.057605 / 0.059141
=

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)
=(4533.141 / 156992.664) / (4611.291 / 75738.661)
=0.028875 / 0.060884
=

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) / 389015.956) / ((0 + 0) / 254691.731)
=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
=(51614.125 - 39916.734 - 44977.233) / 389015.956
=-0.085549

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.


Custodian Investment Beneish M-Score Related Terms

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Custodian Investment Business Description

Traded in Other Exchanges
N/A
Address
16A, Commercial Avenue, Custodian House, P.O. Box 2101, Sabo, Yaba, Lagos, NGA
Custodian Investment PLC is an investment holding company in Nigeria. It operates in five segments. In the Non-life business segment, it offers insurance products like engineering, aviation, marine liability, motor liability, oil and energy, fire, and property for personal and corporate customers. In the Life business segment, it offers life insurance products including annuity, endowment, and investment-oriented products. The pension administration segment includes the administration and management of the retirement benefits of members. Trustees and others segment includes trustee management and corporate services. A vast majority of revenues is received from the non-life business segment within Nigeria.