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TRKNY (Turk Telekomunikasyon AS) Beneish M-Score : -1.50 (As of Dec. 15, 2024)


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What is Turk Telekomunikasyon AS 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 -1.5 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Turk Telekomunikasyon AS's Beneish M-Score or its related term are showing as below:

TRKNY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.89   Med: -3.11   Max: -1.25
Current: -1.5

During the past 13 years, the highest Beneish M-Score of Turk Telekomunikasyon AS was -1.25. The lowest was -3.89. And the median was -3.11.


Turk Telekomunikasyon AS Beneish M-Score Historical Data

The historical data trend for Turk Telekomunikasyon AS'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.

Turk Telekomunikasyon AS Beneish M-Score Chart

Turk Telekomunikasyon AS Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.44 -3.38 -3.10 -1.25 -2.73

Turk Telekomunikasyon AS Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.84 -2.73 -1.75 -1.57 -1.50

Competitive Comparison of Turk Telekomunikasyon AS's Beneish M-Score

For the Telecom Services subindustry, Turk Telekomunikasyon AS'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.


Turk Telekomunikasyon AS's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Turk Telekomunikasyon AS's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Turk Telekomunikasyon AS's Beneish M-Score falls into.



Turk Telekomunikasyon AS 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 Turk Telekomunikasyon AS for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 3.1251+0.528 * 0.5665+0.404 * 1.2927+0.892 * 0.4285+0.115 * 2.7676
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9188+4.679 * -0.070604-0.327 * 0.6045
=-1.13

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $802 Mil.
Revenue was 1186.533 + 1013.864 + 875.424 + -8.997 = $3,067 Mil.
Gross Profit was 405.922 + 307.278 + 254.714 + 11.047 = $979 Mil.
Total Current Assets was $1,606 Mil.
Total Assets was $7,153 Mil.
Property, Plant and Equipment(Net PPE) was $3,358 Mil.
Depreciation, Depletion and Amortization(DDA) was $992 Mil.
Selling, General, & Admin. Expense(SGA) was $677 Mil.
Total Current Liabilities was $1,517 Mil.
Long-Term Debt & Capital Lease Obligation was $1,371 Mil.
Net Income was 33.654 + 43.641 + 32.589 + 545.53 = $655 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 448.609 + 312.891 + 132.504 + 266.434 = $1,160 Mil.
Total Receivables was $599 Mil.
Revenue was 1289.962 + 1332.43 + 1392.08 + 3143.315 = $7,158 Mil.
Gross Profit was 285.985 + 290.082 + 282.581 + 435.68 = $1,294 Mil.
Total Current Assets was $1,647 Mil.
Total Assets was $4,434 Mil.
Property, Plant and Equipment(Net PPE) was $1,737 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,969 Mil.
Selling, General, & Admin. Expense(SGA) was $1,719 Mil.
Total Current Liabilities was $1,868 Mil.
Long-Term Debt & Capital Lease Obligation was $1,093 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)
=(802.298 / 3066.824) / (599.18 / 7157.787)
=0.261605 / 0.08371
=3.1251

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)
=(1294.328 / 7157.787) / (978.961 / 3066.824)
=0.180828 / 0.31921
=0.5665

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 - (1606.301 + 3357.89) / 7152.928) / (1 - (1647.275 + 1736.909) / 4433.715)
=0.305992 / 0.236716
=1.2927

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
=3066.824 / 7157.787
=0.4285

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))
=(2969.454 / (2969.454 + 1736.909)) / (991.55 / (991.55 + 3357.89))
=0.630945 / 0.227972
=2.7676

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)
=(676.788 / 3066.824) / (1719.23 / 7157.787)
=0.22068 / 0.24019
=0.9188

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)
=((1371.108 + 1516.661) / 7152.928) / ((1093.391 + 1867.611) / 4433.715)
=0.403718 / 0.667838
=0.6045

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
=(655.414 - 0 - 1160.438) / 7152.928
=-0.070604

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.

Turk Telekomunikasyon AS has a M-score of -1.13 signals that the company is likely to be a manipulator.


Turk Telekomunikasyon AS Beneish M-Score Related Terms

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Turk Telekomunikasyon AS Business Description

Traded in Other Exchanges
Address
Turgut Ozal Bulvari, Aydinlikevler, Ankara, TUR, 06103
Turk Telekomunikasyon AS is a multi-play telecommunications company that provides broadband, mobile, and TV services for companies and individuals. From a product perspective, revenue comes from mobile and broadband products, which are typically offered on a subscription basis. Within mobile, however, there is roughly an even split between postpaid and prepaid customers. Additionally, Turk Telekomunikasyon owns mobile and fiber infrastructure. The company generates the vast majority of its revenue in Turkey. The Group has two main segments; fixed line and mobile. Fixed line services are provided by Turk Telekom, TTNet, Argela, Innova, Sebit, AssisTT, TTES, TT Venture, TT Destek Hizmetleri and TTINT Group whereas mobile service is provided by TT Mobil.