United International Transportation Co (SAU:4260) Beneish M-Score : -1.46 (As of May. 12, 2024)

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What is United International Transportation 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.

Warning Sign:

Beneish M-Score -1.46 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for United International Transportation Co's Beneish M-Score or its related term are showing as below:

SAU:4260' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51 Med: -2.63 Max: 0.28
Current: -1.46

During the past 13 years, the highest Beneish M-Score of United International Transportation Co was 0.28. The lowest was -3.51. And the median was -2.63.

United International Transportation Co Beneish M-Score Historical Data

The historical data trend for United International Transportation 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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United International Transportation Co Beneish M-Score Chart

United International Transportation Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.94

-2.18

0.28

-1.80

-1.46

United International Transportation Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.80	-1.50	-1.77	-1.70	-1.46

Competitive Comparison of United International Transportation Co's Beneish M-Score

For the Rental & Leasing Services subindustry, United International Transportation 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.

United International Transportation Co's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, United International Transportation Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where United International Transportation Co's Beneish M-Score falls into.

United International Transportation 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 United International Transportation 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 * 1.1056

0.528 * 1.0786

0.404 * 1.6654

0.892 * 1.3443

0.115 * 0.9632

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2771

4.679 * 0.089228

0.327 * 1.1847

-1.46

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ﷼294 Mil.
Revenue was 369.808 + 369.072 + 340.553 + 298.705 = ﷼1,378 Mil.
Gross Profit was 119.084 + 110.608 + 112.94 + 104.006 = ﷼447 Mil.
Total Current Assets was ﷼393 Mil.
Total Assets was ﷼3,013 Mil.
Property, Plant and Equipment(Net PPE) was ﷼2,579 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼320 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼52 Mil.
Total Current Liabilities was ﷼683 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼350 Mil.
Net Income was 66.127 + 71.501 + 70.284 + 69.318 = ﷼277 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 48.738 + 47.468 + -38.809 + -49.028 = ﷼8 Mil.

Total Receivables was ﷼198 Mil.
Revenue was 250.217 + 295.4 + 231.245 + 248.3 = ﷼1,025 Mil.
Gross Profit was 85.77 + 94.135 + 91.572 + 86.875 = ﷼358 Mil.
Total Current Assets was ﷼287 Mil.
Total Assets was ﷼2,520 Mil.
Property, Plant and Equipment(Net PPE) was ﷼2,212 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼264 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼31 Mil.
Total Current Liabilities was ﷼524 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼205 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)
	=	(294.195 / 1378.138)	/	(197.937 / 1025.162)
	=	0.213473	/	0.193079
	=	1.1056

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)
	=	(358.352 / 1025.162)	/	(446.638 / 1378.138)
	=	0.349556	/	0.324088
	=	1.0786

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 - (393.373 + 2578.594) / 3013.187)	/	(1 - (287.471 + 2211.935) / 2520.107)
	=	0.01368	/	0.008214
	=	1.6654

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
	=	1378.138	/	1025.162
	=	1.3443

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))
	=	(263.555 / (263.555 + 2211.935))	/	(320.456 / (320.456 + 2578.594))
	=	0.106466	/	0.110538
	=	0.9632

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)
	=	(52.472 / 1378.138)	/	(30.563 / 1025.162)
	=	0.038075	/	0.029813
	=	1.2771

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)
	=	((349.617 + 683.232) / 3013.187)	/	((204.855 + 524.314) / 2520.107)
	=	0.342776	/	0.28934
	=	1.1847

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
	=	(277.23 - 0	-	8.369)	/	3013.187
	=	0.089228

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.

United International Transportation Co has a M-score of -1.46 signals that the company is likely to be a manipulator.

United International Transportation Co Beneish M-Score Related Terms

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United International Transportation Co (SAU:4260) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » United International Transportation Co Ltd (SAU:4260) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

6695 King Abdul Aziz Road, Unit No. 92, Al Basatin District, Jeddah, SAU, 23719-4327

Website

https://www.budgetsaudi.com

United International Transportation Co Ltd operates as a car rental company in Saudi Arabia. The company operating segments include Lease, Rental, and others. It generates maximum revenue from the Lease segment. The company services include short- and long-term car rentals, chauffeur-driven services, corporate program, budget express cards, lodge and drive, limousine services and automotive maintenance.

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