MAA Group Bhd (XKLS:1198) Beneish M-Score : -3.25 (As of May. 16, 2024)

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What is MAA Group Bhd 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 -3.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:1198' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83 Med: -2.41 Max: 18.8
Current: -3.25

During the past 13 years, the highest Beneish M-Score of MAA Group Bhd was 18.80. The lowest was -3.83. And the median was -2.41.

MAA Group Bhd 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 MAA Group Bhd 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 * 0.4913

0.528 * 1

0.404 * 0.99

0.892 * 1.1426

0.115 * 0.6639

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5619

4.679 * -0.022175

0.327 * 2.0995

-3.25

* 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 (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was RM69.4 Mil.
Revenue was 21.054 + 37.809 + 68.802 + 55.15 = RM182.8 Mil.
Gross Profit was 21.054 + 37.809 + 68.802 + 55.15 = RM182.8 Mil.
Total Current Assets was RM0.0 Mil.
Total Assets was RM720.2 Mil.
Property, Plant and Equipment(Net PPE) was RM65.6 Mil.
Depreciation, Depletion and Amortization(DDA) was RM19.8 Mil.
Selling, General, & Admin. Expense(SGA) was RM80.3 Mil.
Total Current Liabilities was RM0.0 Mil.
Long-Term Debt & Capital Lease Obligation was RM90.4 Mil.
Net Income was -5.165 + -16.248 + 3.382 + 8.444 = RM-9.6 Mil.
Non Operating Income was 18.098 + 7.766 + 26.518 + 12.964 = RM65.3 Mil.
Cash Flow from Operations was -20.137 + -36.792 + -10.183 + 8.149 = RM-59.0 Mil.

Total Receivables was RM123.6 Mil.
Revenue was 34.346 + 38.348 + 50.466 + 36.833 = RM160.0 Mil.
Gross Profit was 34.346 + 38.348 + 50.466 + 36.833 = RM160.0 Mil.
Total Current Assets was RM0.0 Mil.
Total Assets was RM769.2 Mil.
Property, Plant and Equipment(Net PPE) was RM63.1 Mil.
Depreciation, Depletion and Amortization(DDA) was RM11.5 Mil.
Selling, General, & Admin. Expense(SGA) was RM125.1 Mil.
Total Current Liabilities was RM0.0 Mil.
Long-Term Debt & Capital Lease Obligation was RM46.0 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)
	=	(69.391 / 182.815)	/	(123.6 / 159.993)
	=	0.37957	/	0.772534
	=	0.4913

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)
	=	(159.993 / 159.993)	/	(182.815 / 182.815)
	=	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 + 65.629) / 720.195)	/	(1 - (0 + 63.066) / 769.183)
	=	0.908873	/	0.918009
	=	0.99

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
	=	182.815	/	159.993
	=	1.1426

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))
	=	(11.476 / (11.476 + 63.066))	/	(19.813 / (19.813 + 65.629))
	=	0.153953	/	0.231888
	=	0.6639

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)
	=	(80.302 / 182.815)	/	(125.06 / 159.993)
	=	0.439253	/	0.781659
	=	0.5619

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)
	=	((90.371 + 0) / 720.195)	/	((45.971 + 0) / 769.183)
	=	0.125481	/	0.059766
	=	2.0995

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
	=	(-9.587 - 65.346	-	-58.963)	/	720.195
	=	-0.022175

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.

MAA Group Bhd has a M-score of -3.25 suggests that the company is unlikely to be a manipulator.

MAA Group Bhd Beneish M-Score Related Terms

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MAA Group Bhd (XKLS:1198) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » MAA Group Bhd (XKLS:1198) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 566 Jalan Ipoh, 13th Floor, Kuala Lumpur, MYS, 51200

Website

https://www.maa.my

MAA Group Bhd is an investment holding company. The company along with its subsidiaries operates in given segments Investment holdings segment is engaged in investment holdings. General Insurance involves the underwriting of all classes of general insurance business. Education Services segment provides private tuition to students, tertiary education for certificates, diplomas, professional and post-graduate degrees; Credit Services involves provision of money lending, debt factoring and other credit activities and Hospitality Services involves provision of hospitality services, food and beverage, retailer of Cigars, and other services including logistics, renovation, facilities management service. It generates maximum revenue from the General insurance segment.