Abdullah Al Othaim Markets Co (SAU:4001) Beneish M-Score : -2.68 (As of May. 27, 2024)

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What is Abdullah Al Othaim Markets 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 -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Abdullah Al Othaim Markets Co's Beneish M-Score or its related term are showing as below:

SAU:4001' s Beneish M-Score Range Over the Past 10 Years
Min: -4.13 Med: -2.5 Max: 15.99
Current: -2.68

During the past 13 years, the highest Beneish M-Score of Abdullah Al Othaim Markets Co was 15.99. The lowest was -4.13. And the median was -2.50.

Abdullah Al Othaim Markets Co Beneish M-Score Historical Data

The historical data trend for Abdullah Al Othaim Markets 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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Abdullah Al Othaim Markets Co Beneish M-Score Chart

Abdullah Al Othaim Markets Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-4.13

1.29

-3.34

0.96

-2.50

Abdullah Al Othaim Markets 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															-2.52	-1.91	-3.57	-2.50	-2.68

Competitive Comparison of Abdullah Al Othaim Markets Co's Beneish M-Score

For the Grocery Stores subindustry, Abdullah Al Othaim Markets 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.

Abdullah Al Othaim Markets Co's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Abdullah Al Othaim Markets Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Abdullah Al Othaim Markets Co's Beneish M-Score falls into.

Abdullah Al Othaim Markets 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 Abdullah Al Othaim Markets 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 * 0.8917

0.528 * 0.9815

0.404 * 1.2834

0.892 * 1.0594

0.115 * 1.0476

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.063

4.679 * -0.052217

0.327 * 1.0158

-2.68

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ﷼242 Mil.
Revenue was 3032.756 + 2563.425 + 2439.11 + 2419.843 = ﷼10,455 Mil.
Gross Profit was 626.425 + 649.719 + 539.365 + 508.277 = ﷼2,324 Mil.
Total Current Assets was ﷼1,985 Mil.
Total Assets was ﷼6,653 Mil.
Property, Plant and Equipment(Net PPE) was ﷼3,756 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼403 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼446 Mil.
Total Current Liabilities was ﷼3,173 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼1,933 Mil.
Net Income was 116.429 + 168.958 + 62.376 + 139.427 = ﷼487 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 654.197 + 218.674 + 175.543 + -213.819 = ﷼835 Mil.

Total Receivables was ﷼256 Mil.
Revenue was 2781.505 + 2492.102 + 2340.538 + 2254.524 = ﷼9,869 Mil.
Gross Profit was 574.25 + 628.547 + 481.254 + 468.719 = ﷼2,153 Mil.
Total Current Assets was ﷼2,456 Mil.
Total Assets was ﷼6,447 Mil.
Property, Plant and Equipment(Net PPE) was ﷼3,302 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼373 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼396 Mil.
Total Current Liabilities was ﷼3,142 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼1,730 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)
	=	(241.798 / 10455.134)	/	(255.949 / 9868.669)
	=	0.023127	/	0.025936
	=	0.8917

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)
	=	(2152.77 / 9868.669)	/	(2323.786 / 10455.134)
	=	0.218142	/	0.222263
	=	0.9815

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 - (1984.767 + 3755.653) / 6653.142)	/	(1 - (2456.04 + 3302.241) / 6447.449)
	=	0.137187	/	0.10689
	=	1.2834

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
	=	10455.134	/	9868.669
	=	1.0594

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))
	=	(373.255 / (373.255 + 3302.241))	/	(403.131 / (403.131 + 3755.653))
	=	0.101552	/	0.096935
	=	1.0476

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)
	=	(446.162 / 10455.134)	/	(396.192 / 9868.669)
	=	0.042674	/	0.040146
	=	1.063

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)
	=	((1933.239 + 3173.415) / 6653.142)	/	((1730.14 + 3141.638) / 6447.449)
	=	0.767555	/	0.755613
	=	1.0158

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
	=	(487.19 - 0	-	834.595)	/	6653.142
	=	-0.052217

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.

Abdullah Al Othaim Markets Co has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Abdullah Al Othaim Markets Co Beneish M-Score Related Terms

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Abdullah Al Othaim Markets Co (SAU:4001) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Abdullah Al Othaim Markets Co (SAU:4001) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Arabia Rabwah Eastern Ring Road, P.O. Box 41700, Riyadh, SAU, 11531

Website

https://www.othaimmarkets.com

Abdullah Al Othaim Markets Co is engaged in the wholesale and retail trade of food, fish, meat, agricultural products, livestock and household items. It is also involved in establishing, managing, operating and maintaining supermarkets, commercial complexes, and bakeries, providing cooked and uncooked catering services, and managing training and educational centers, in addition to acquiring lands to construct buildings for lease or sale for the interest of the company. It operates in the segments of Retail and whole trading of food supplies, in addition to Leasing commercial centers for the purpose of investment for the interest of the company through sale or leasing. It operates in the Kingdom of Saudi Arabia and Egypt and derives key revenue from Retail and wholesale activities.

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