Middle East Healthcare Co (SAU:4009) Beneish M-Score : -2.43 (As of Mar. 30, 2025)

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What is Middle East Healthcare 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Middle East Healthcare Co's Beneish M-Score or its related term are showing as below:

SAU:4009' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37 Med: -2.25 Max: -0.68
Current: -2.43

During the past 10 years, the highest Beneish M-Score of Middle East Healthcare Co was -0.68. The lowest was -3.37. And the median was -2.25.

Middle East Healthcare Co Beneish M-Score Historical Data

The historical data trend for Middle East Healthcare 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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Middle East Healthcare Co Beneish M-Score Chart

Middle East Healthcare Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-1.64

-2.06

-3.32

-0.92

-2.43

Middle East Healthcare Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-0.92	-1.23	-0.43	-1.66	-2.43

Competitive Comparison of Middle East Healthcare Co's Beneish M-Score

For the Medical Care Facilities subindustry, Middle East Healthcare 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.

Middle East Healthcare Co's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Middle East Healthcare Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Middle East Healthcare Co's Beneish M-Score falls into.

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Middle East Healthcare 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 Middle East Healthcare 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 * 0.7787

0.528 * 0.9895

0.404 * 2.5584

0.892 * 1.0866

0.115 * 0.9767

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.229

4.679 * -0.094433

0.327 * 0.8825

-2.43

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ﷼1,946 Mil.
Revenue was 748.877 + 732.074 + 712.657 + 689.21 = ﷼2,883 Mil.
Gross Profit was 282.074 + 292.901 + 279.065 + 259.857 = ﷼1,114 Mil.
Total Current Assets was ﷼2,173 Mil.
Total Assets was ﷼5,125 Mil.
Property, Plant and Equipment(Net PPE) was ﷼2,847 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼217 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼218 Mil.
Total Current Liabilities was ﷼1,262 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼1,813 Mil.
Net Income was 107.144 + 61.744 + 61.171 + 51.943 = ﷼282 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 128.366 + 397.723 + 41.916 + 197.996 = ﷼766 Mil.

Total Receivables was ﷼2,301 Mil.
Revenue was 719.811 + 671.047 + 624.325 + 637.989 = ﷼2,653 Mil.
Gross Profit was 293.958 + 266.326 + 228.631 + 225.495 = ﷼1,014 Mil.
Total Current Assets was ﷼2,536 Mil.
Total Assets was ﷼5,135 Mil.
Property, Plant and Equipment(Net PPE) was ﷼2,557 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼190 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼163 Mil.
Total Current Liabilities was ﷼2,135 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼1,356 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)
	=	(1946.413 / 2882.818)	/	(2300.555 / 2653.172)
	=	0.675177	/	0.867096
	=	0.7787

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)
	=	(1014.41 / 2653.172)	/	(1113.897 / 2882.818)
	=	0.382339	/	0.386392
	=	0.9895

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 - (2173.387 + 2847.144) / 5125.314)	/	(1 - (2536.325 + 2557.263) / 5134.618)
	=	0.020444	/	0.007991
	=	2.5584

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
	=	2882.818	/	2653.172
	=	1.0866

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))
	=	(189.812 / (189.812 + 2557.263))	/	(216.747 / (216.747 + 2847.144))
	=	0.069096	/	0.070742
	=	0.9767

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)
	=	(217.955 / 2882.818)	/	(163.212 / 2653.172)
	=	0.075605	/	0.061516
	=	1.229

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)
	=	((1813.449 + 1261.901) / 5125.314)	/	((1356.042 + 2135.224) / 5134.618)
	=	0.600032	/	0.679947
	=	0.8825

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
	=	(282.002 - 0	-	766.001)	/	5125.314
	=	-0.094433

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.

Middle East Healthcare Co has a M-score of -2.43 suggests that the company is unlikely to be a manipulator.

Middle East Healthcare Co Beneish M-Score Related Terms

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Middle East Healthcare Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Middle East Healthcare Co (SAU:4009) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

4, Batterjee Road, P.O.Box 2550, Al-Zahra District, Jeddah, SAU, 21461

Website

https://www.saudigermanhealth.com

Middle East Healthcare Co is a Saudi Arabia-based company engaged in the business of managing, operating and maintaining hospitals, medical centers, educational centers, rehabilitation centers, physiotherapy, laboratories and radiology centers, pharmacies, construction, and to buy land for the purpose of constructing medical projects and to establish, manage and organize exhibitions for the company.

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