Emka Ad (XBUL:EMKA) Beneish M-Score : -2.64 (As of May. 14, 2024)

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What is Emka Ad 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XBUL:EMKA' s Beneish M-Score Range Over the Past 10 Years
Min: -3 Med: -2.67 Max: -2.19
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Emka Ad was -2.19. The lowest was -3.00. And the median was -2.67.

Emka Ad Beneish M-Score Historical Data

The historical data trend for Emka Ad'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.

Emka Ad Beneish M-Score Chart

Emka Ad Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.70

-2.19

-2.21

-2.71

-2.64

Emka Ad 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															-2.71	-2.19	-2.62	-2.02	-2.64

Competitive Comparison of Emka Ad's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Emka Ad'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.

Emka Ad's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emka Ad's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Emka Ad's Beneish M-Score falls into.

Emka Ad 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 Emka Ad 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 * 0.9588

0.528 * 0.8964

0.404 * 0.9668

0.892 * 0.8455

0.115 * 0.9975

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1299

4.679 * -0.024938

0.327 * 0.3106

-2.64

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was лв13.6 Mil.
Revenue was 27.85 + 34.076 + 32.209 + 40.451 = лв134.6 Mil.
Gross Profit was 3.784 + 5.994 + 5.62 + 8.464 = лв23.9 Mil.
Total Current Assets was лв50.8 Mil.
Total Assets was лв64.9 Mil.
Property, Plant and Equipment(Net PPE) was лв12.8 Mil.
Depreciation, Depletion and Amortization(DDA) was лв2.1 Mil.
Selling, General, & Admin. Expense(SGA) was лв0.4 Mil.
Total Current Liabilities was лв2.5 Mil.
Long-Term Debt & Capital Lease Obligation was лв0.0 Mil.
Net Income was 0.429 + 2.181 + 1.758 + 4.294 = лв8.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = лв0.0 Mil.
Cash Flow from Operations was 11.282 + -0.153 + 1.365 + -2.214 = лв10.3 Mil.

Total Receivables was лв16.7 Mil.
Revenue was 36.393 + 37.75 + 44.43 + 40.614 = лв159.2 Mil.
Gross Profit was 4.942 + 5.764 + 7.823 + 6.772 = лв25.3 Mil.
Total Current Assets was лв50.7 Mil.
Total Assets was лв65.2 Mil.
Property, Plant and Equipment(Net PPE) was лв13.1 Mil.
Depreciation, Depletion and Amortization(DDA) was лв2.1 Mil.
Selling, General, & Admin. Expense(SGA) was лв0.4 Mil.
Total Current Liabilities was лв6.3 Mil.
Long-Term Debt & Capital Lease Obligation was лв1.8 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)
	=	(13.576 / 134.586)	/	(16.748 / 159.187)
	=	0.100872	/	0.10521
	=	0.9588

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)
	=	(25.301 / 159.187)	/	(23.862 / 134.586)
	=	0.158939	/	0.177299
	=	0.8964

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 - (50.798 + 12.769) / 64.88)	/	(1 - (50.693 + 13.105) / 65.162)
	=	0.020237	/	0.020932
	=	0.9668

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
	=	134.586	/	159.187
	=	0.8455

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))
	=	(2.149 / (2.149 + 13.105))	/	(2.1 / (2.1 + 12.769))
	=	0.140881	/	0.141233
	=	0.9975

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)
	=	(0.384 / 134.586)	/	(0.402 / 159.187)
	=	0.002853	/	0.002525
	=	1.1299

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)
	=	((0 + 2.5) / 64.88)	/	((1.793 + 6.292) / 65.162)
	=	0.038533	/	0.124075
	=	0.3106

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
	=	(8.662 - 0	-	10.28)	/	64.88
	=	-0.024938

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.

Emka Ad has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.

Emka Ad Beneish M-Score Related Terms

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Emka Ad (XBUL:EMKA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Emka Ad (XBUL:EMKA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Street Bacho Kiro No. 8, Sofia, BGR, 1000

Website

http://www.emka-bg.com

Emka Ad is engaged in the production of wires and cables. The company manufactures non-halogen and polyurethane cables. The product portfolio includes insulated wires, cables, flexible cords, non-insulated wires, winding wires, among others.

Emka Ad (XBUL:EMKA) Headlines

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