National Insurance Co (XPAE:NIC) Beneish M-Score : -2.07 (As of Apr. 06, 2025)

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What is National 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 -2.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XPAE:NIC' s Beneish M-Score Range Over the Past 10 Years
Min: -10.15 Med: -2.4 Max: -1.47
Current: -2.07

During the past 13 years, the highest Beneish M-Score of National Insurance Co was -1.47. The lowest was -10.15. And the median was -2.40.

National 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 National 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 * 0.9523

0.528 * 1

0.404 * 1.0169

0.892 * 1.0851

0.115 * 0.8289

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * -0.0823

4.679 * 0.021671

0.327 * 0.6754

-2.07

* 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 $0.59 Mil.
Revenue was 12.708 + 14.35 + 17.345 + 9.189 = $53.59 Mil.
Gross Profit was 12.708 + 14.35 + 17.345 + 9.189 = $53.59 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $113.42 Mil.
Property, Plant and Equipment(Net PPE) was $4.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.83 Mil.
Selling, General, & Admin. Expense(SGA) was $0.40 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.74 Mil.
Net Income was 0.014 + -0.223 + 0.693 + 0.974 = $1.46 Mil.
Non Operating Income was 0.187 + -0.046 + -0.189 + -0.831 = $-0.88 Mil.
Cash Flow from Operations was -0.436 + 0.16 + -2.027 + 2.182 = $-0.12 Mil.

Total Receivables was $0.57 Mil.
Revenue was 11.236 + 11.506 + 11.038 + 15.611 = $49.39 Mil.
Gross Profit was 11.236 + 11.506 + 11.038 + 15.611 = $49.39 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $90.99 Mil.
Property, Plant and Equipment(Net PPE) was $5.42 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.73 Mil.
Selling, General, & Admin. Expense(SGA) was $-4.45 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.88 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)
	=	(0.589 / 53.592)	/	(0.57 / 49.391)
	=	0.01099	/	0.011541
	=	0.9523

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)
	=	(49.391 / 49.391)	/	(53.592 / 53.592)
	=	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 + 4.959) / 113.422)	/	(1 - (0 + 5.422) / 90.993)
	=	0.956278	/	0.940413
	=	1.0169

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
	=	53.592	/	49.391
	=	1.0851

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))
	=	(0.733 / (0.733 + 5.422))	/	(0.832 / (0.832 + 4.959))
	=	0.11909	/	0.143671
	=	0.8289

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)
	=	(0.397 / 53.592)	/	(-4.445 / 49.391)
	=	0.007408	/	-0.089996
	=	-0.0823

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)
	=	((0.74 + 0) / 113.422)	/	((0.879 + 0) / 90.993)
	=	0.006524	/	0.00966
	=	0.6754

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
	=	(1.458 - -0.879	-	-0.121)	/	113.422
	=	0.021671

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.

National Insurance Co has a M-score of -2.07 suggests that the company is unlikely to be a manipulator.

National Insurance Co Beneish M-Score Related Terms

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National Insurance Co Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Bireh - National Towers, Al Bireh, PSE

Website

https://www.nic-pal.com

National Insurance Co is an insurance company. The company provides motor, property, marine, engineering, specialized and personal insurance.