Al-Babtain Power & Telecommunication Co (SAU:2320) Beneish M-Score : -2.76 (As of Jun. 22, 2024)

View and export this data going back to 2006. Start your Free Trial

What is Al-Babtain Power & Telecommunication 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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Al-Babtain Power & Telecommunication Co's Beneish M-Score or its related term are showing as below:

SAU:2320' s Beneish M-Score Range Over the Past 10 Years
Min: -3.44 Med: -2.32 Max: 0.89
Current: -2.76

During the past 13 years, the highest Beneish M-Score of Al-Babtain Power & Telecommunication Co was 0.89. The lowest was -3.44. And the median was -2.32.

Al-Babtain Power & Telecommunication Co Beneish M-Score Historical Data

The historical data trend for Al-Babtain Power & Telecommunication 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.

* Premium members only.

Al-Babtain Power & Telecommunication Co Beneish M-Score Chart

Al-Babtain Power & Telecommunication Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.08

0.89

-1.87

-1.91

-2.76

Al-Babtain Power & Telecommunication 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															-2.43	-2.29	-2.65	-2.76	-2.76

Competitive Comparison of Al-Babtain Power & Telecommunication Co's Beneish M-Score

For the Engineering & Construction subindustry, Al-Babtain Power & Telecommunication 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.

Al-Babtain Power & Telecommunication Co's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Al-Babtain Power & Telecommunication Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Al-Babtain Power & Telecommunication Co's Beneish M-Score falls into.

Al-Babtain Power & Telecommunication 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 Al-Babtain Power & Telecommunication 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 * 0.9987

0.528 * 0.7

0.404 * 0.76

0.892 * 1.0536

0.115 * 0.944

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0672

4.679 * -0.0148

0.327 * 0.9558

-2.76

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ﷼1,127 Mil.
Revenue was 699.548 + 563.037 + 757.657 + 534.319 = ﷼2,555 Mil.
Gross Profit was 109.385 + 139.581 + 99.013 + 97.742 = ﷼446 Mil.
Total Current Assets was ﷼2,353 Mil.
Total Assets was ﷼2,930 Mil.
Property, Plant and Equipment(Net PPE) was ﷼417 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼36 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼27 Mil.
Total Current Liabilities was ﷼1,479 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼317 Mil.
Net Income was 82.605 + 43.239 + 43.372 + 40.682 = ﷼210 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 286.376 + 152.805 + 24.292 + -210.205 = ﷼253 Mil.

Total Receivables was ﷼1,071 Mil.
Revenue was 639.113 + 686.77 + 740.165 + 358.605 = ﷼2,425 Mil.
Gross Profit was 64.638 + 124.668 + 60.39 + 46.421 = ﷼296 Mil.
Total Current Assets was ﷼2,071 Mil.
Total Assets was ﷼2,683 Mil.
Property, Plant and Equipment(Net PPE) was ﷼419 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼34 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼24 Mil.
Total Current Liabilities was ﷼1,321 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼399 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)
	=	(1126.88 / 2554.561)	/	(1070.974 / 2424.653)
	=	0.441125	/	0.441702
	=	0.9987

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)
	=	(296.117 / 2424.653)	/	(445.721 / 2554.561)
	=	0.122128	/	0.17448
	=	0.7

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 - (2352.953 + 417.173) / 2930.384)	/	(1 - (2071.125 + 418.719) / 2682.892)
	=	0.054688	/	0.071955
	=	0.76

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
	=	2554.561	/	2424.653
	=	1.0536

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))
	=	(33.597 / (33.597 + 418.719))	/	(35.629 / (35.629 + 417.173))
	=	0.074278	/	0.078686
	=	0.944

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)
	=	(27.378 / 2554.561)	/	(24.348 / 2424.653)
	=	0.010717	/	0.010042
	=	1.0672

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)
	=	((316.694 + 1479.267) / 2930.384)	/	((398.831 + 1321.496) / 2682.892)
	=	0.612876	/	0.641221
	=	0.9558

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
	=	(209.898 - 0	-	253.268)	/	2930.384
	=	-0.0148

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.

Al-Babtain Power & Telecommunication Co has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

Al-Babtain Power & Telecommunication Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Al-Babtain Power & Telecommunication Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Al-Babtain Power & Telecommunication Co (SAU:2320) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Al-Babtain Power & Telecommunication Co (SAU:2320) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O. Box 88373, Al-Sulay District, Riyadh, SAU, 11662

Website

https://www.al-babtain.com.sa

Al-Babtain Power & Telecommunication Co provides solutions for power and telecommunications infrastructure. The company's activity involves establishing and repairing stations and towers of wired and wireless communication and radars. Its operating segment involves (i) the Towers and metal structures sector which includes the production of power transmission towers, galvanized communication towers and their tests, and galvanized steel structures. (ii) Poles and lighting which include the production and galvanization of electricity and lighting poles, masts, and their accessories. (iv) Design, supply, and installation sector which includes the work of supplying, installing, and maintaining communication systems. (v) Solar energy sector and (vi) Headquarters.

Al-Babtain Power & Telecommunication Co (SAU:2320) Headlines

No Headlines