Texim Bank AD (XBUL:TXIM) Beneish M-Score

: -2.72 (As of Today)

View and export this data going back to 2013. Start your Free Trial

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 -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XBUL:TXIM' s Beneish M-Score Range Over the Past 10 Years
Min: -28.96 Med: -2.81 Max: -1.11
Current: -2.72

During the past 12 years, the highest Beneish M-Score of Texim Bank AD was -1.11. The lowest was -28.96. And the median was -2.81.

Texim Bank 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 Texim Bank 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 * 1

0.528 * 1

0.404 * 0.9348

0.892 * 1.1315

0.115 * 0.9989

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9786

4.679 * -0.080209

0.327 * 0.8877

-2.72

* 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 (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was лв0.00 Mil.
Revenue was лв20.55 Mil.
Gross Profit was лв20.55 Mil.
Total Current Assets was лв200.32 Mil.
Total Assets was лв597.24 Mil.
Property, Plant and Equipment(Net PPE) was лв19.96 Mil.
Depreciation, Depletion and Amortization(DDA) was лв3.76 Mil.
Selling, General, & Admin. Expense(SGA) was лв4.47 Mil.
Total Current Liabilities was лв1.45 Mil.
Long-Term Debt & Capital Lease Obligation was лв25.10 Mil.
Net Income was лв0.32 Mil.
Gross Profit was лв0.00 Mil.
Cash Flow from Operations was лв48.22 Mil.

Total Receivables was лв0.00 Mil.
Revenue was лв18.17 Mil.
Gross Profit was лв18.17 Mil.
Total Current Assets was лв154.52 Mil.
Total Assets was лв537.13 Mil.
Property, Plant and Equipment(Net PPE) was лв19.95 Mil.
Depreciation, Depletion and Amortization(DDA) was лв3.75 Mil.
Selling, General, & Admin. Expense(SGA) was лв4.04 Mil.
Total Current Liabilities was лв0.70 Mil.
Long-Term Debt & Capital Lease Obligation was лв26.20 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)
	=	(0 / 20.554)	/	(0 / 18.166)
	=	0	/	0
	=	1

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)
	=	(18.166 / 18.166)	/	(20.554 / 20.554)
	=	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 - (200.317 + 19.955) / 597.236)	/	(1 - (154.523 + 19.954) / 537.132)
	=	0.631181	/	0.675169
	=	0.9348

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
	=	20.554	/	18.166
	=	1.1315

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))
	=	(3.753 / (3.753 + 19.954))	/	(3.758 / (3.758 + 19.955))
	=	0.158308	/	0.158478
	=	0.9989

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)
	=	(4.472 / 20.554)	/	(4.039 / 18.166)
	=	0.217573	/	0.222338
	=	0.9786

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)
	=	((25.096 + 1.452) / 597.236)	/	((26.199 + 0.698) / 537.132)
	=	0.044451	/	0.050075
	=	0.8877

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
	=	(0.315 - 0	-	48.219)	/	597.236
	=	-0.080209

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.

Texim Bank AD has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

Texim Bank AD Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Texim Bank AD's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Texim Bank AD (XBUL:TXIM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Texim Bank AD (XBUL:TXIM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Boulevard Kn. Maria-Luisa 107, Sofia, BGR, 1202

Website

http://www.teximbank.bg

Texim Bank AD operates in the banking sector. The company performs general banking functions in Bulgaria.