Algr Co-operative Insurance Co (SAU:8180) Beneish M-Score : -3.49 (As of Jul. 10, 2025)

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What is Algr Co-operative Insurance Co 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.

Good Sign:

Beneish M-Score -3.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Algr Co-operative Insurance Co's Beneish M-Score or its related term are showing as below:

SAU:8180' s Beneish M-Score Range Over the Past 10 Years
Min: -6.82 Med: -2.44 Max: -1.15
Current: -3.49

During the past 13 years, the highest Beneish M-Score of Algr Co-operative Insurance Co was -1.15. The lowest was -6.82. And the median was -2.44.

Algr Co-operative Insurance 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 Algr Co-operative Insurance 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 * 0.4299

0.528 * 1

0.404 * 0.9947

0.892 * 1.0821

0.115 * 1.4605

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9936

4.679 * -0.009553

0.327 * 2.7438

-3.49

* 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 (Mar25) TTM:

Last Year (Mar24) TTM:

Total Receivables was ﷼1.0 Mil.
Revenue was 141.726 + 129.037 + 122.059 + 100.755 = ﷼493.6 Mil.
Gross Profit was 141.726 + 129.037 + 122.059 + 100.755 = ﷼493.6 Mil.
Total Current Assets was ﷼0.0 Mil.
Total Assets was ﷼723.0 Mil.
Property, Plant and Equipment(Net PPE) was ﷼9.9 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼4.0 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼2.4 Mil.
Total Current Liabilities was ﷼0.0 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼3.9 Mil.
Net Income was -17.923 + 10.799 + 3.125 + 10.508 = ﷼6.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0.0 Mil.
Cash Flow from Operations was -17.258 + 9.023 + 29.26 + -7.609 = ﷼13.4 Mil.

Total Receivables was ﷼2.2 Mil.
Revenue was 111.8 + 115.147 + 119.701 + 109.473 = ﷼456.1 Mil.
Gross Profit was 111.8 + 115.147 + 119.701 + 109.473 = ﷼456.1 Mil.
Total Current Assets was ﷼0.0 Mil.
Total Assets was ﷼561.5 Mil.
Property, Plant and Equipment(Net PPE) was ﷼4.7 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼3.4 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼2.2 Mil.
Total Current Liabilities was ﷼0.0 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼1.1 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)
	=	(1.005 / 493.577)	/	(2.16 / 456.121)
	=	0.002036	/	0.004736
	=	0.4299

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)
	=	(456.121 / 456.121)	/	(493.577 / 493.577)
	=	1	/	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 + 9.852) / 723.043)	/	(1 - (0 + 4.682) / 561.525)
	=	0.986374	/	0.991662
	=	0.9947

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
	=	493.577	/	456.121
	=	1.0821

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))
	=	(3.442 / (3.442 + 4.682))	/	(4.026 / (4.026 + 9.852))
	=	0.423683	/	0.290099
	=	1.4605

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)
	=	(2.364 / 493.577)	/	(2.199 / 456.121)
	=	0.00479	/	0.004821
	=	0.9936

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)
	=	((3.942 + 0) / 723.043)	/	((1.116 + 0) / 561.525)
	=	0.005452	/	0.001987
	=	2.7438

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
	=	(6.509 - 0	-	13.416)	/	723.043
	=	-0.009553

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.

Algr Co-operative Insurance Co has a M-score of -3.49 suggests that the company is unlikely to be a manipulator.

Algr Co-operative Insurance Co Beneish M-Score Related Terms

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Algr Co-operative Insurance Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Al Sagr Co-operative Insurance Co (SAU:8180) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

P. O. Box 3501, Dammam, SAU, 32241

Website

https://www.alsagr.com

Al Sagr Co-operative Insurance Co is a Saudi Arabia based company involved in insurance sector. The company provides insurance in various areas, including motor, medical, marine, property, engineering, liability, miscellaneous, travel, energy, and medical malpractice.