Trust International Insurance Co (XPAE:TRUST) Beneish M-Score : -4.96 (As of Mar. 23, 2025)

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What is Trust International 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 -4.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XPAE:TRUST' s Beneish M-Score Range Over the Past 10 Years
Min: -4.96 Med: -1.98 Max: 0.05
Current: -4.96

During the past 13 years, the highest Beneish M-Score of Trust International Insurance Co was 0.05. The lowest was -4.96. And the median was -1.98.

Trust International 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 Trust International 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 * 0.8546

0.528 * 1

0.404 * 0.9951

0.892 * 1.0841

0.115 * 1.6121

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6856

4.679 * -0.006284

0.327 * 8.6808

-4.96

* 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 (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $0.6 Mil.
Revenue was 30.703 + 39.855 + 22.974 + 26.203 = $119.7 Mil.
Gross Profit was 30.703 + 39.855 + 22.974 + 26.203 = $119.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $159.3 Mil.
Property, Plant and Equipment(Net PPE) was $21.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.2 Mil.
Selling, General, & Admin. Expense(SGA) was $4.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $0.7 Mil.
Net Income was 1.075 + 0.827 + 0.189 + 0.517 = $2.6 Mil.
Non Operating Income was 3.004 + -0.514 + -0.178 + -0.161 = $2.2 Mil.
Cash Flow from Operations was 2.76 + 0.737 + 3.753 + -5.792 = $1.5 Mil.

Total Receivables was $0.6 Mil.
Revenue was 28.188 + 27.072 + 27.216 + 27.966 = $110.4 Mil.
Gross Profit was 28.188 + 27.072 + 27.216 + 27.966 = $110.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $160.6 Mil.
Property, Plant and Equipment(Net PPE) was $20.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.9 Mil.
Selling, General, & Admin. Expense(SGA) was $6.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $0.1 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)
	=	(0.579 / 119.735)	/	(0.625 / 110.442)
	=	0.004836	/	0.005659
	=	0.8546

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)
	=	(110.442 / 110.442)	/	(119.735 / 119.735)
	=	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 + 21.001) / 159.297)	/	(1 - (0 + 20.479) / 160.56)
	=	0.868164	/	0.872453
	=	0.9951

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
	=	119.735	/	110.442
	=	1.0841

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))
	=	(1.889 / (1.889 + 20.479))	/	(1.161 / (1.161 + 21.001))
	=	0.084451	/	0.052387
	=	1.6121

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)
	=	(4.479 / 119.735)	/	(6.026 / 110.442)
	=	0.037408	/	0.054563
	=	0.6856

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)
	=	((0.654 + 0) / 159.297)	/	((0.076 + 0) / 160.56)
	=	0.004106	/	0.000473
	=	8.6808

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
	=	(2.608 - 2.151	-	1.458)	/	159.297
	=	-0.006284

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.

Trust International Insurance Co has a M-score of -4.96 suggests that the company is unlikely to be a manipulator.

Trust International Insurance Co Beneish M-Score Related Terms

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Trust International Insurance Co Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Al-Quds Street, PO Box 1860, Trust Ramallah Building, Al-Bireh, PSE

Website

https://www.trustpalestine.com

Trust International Insurance Co is involved in the business of insurance, re-insurance, and all kinds of warranty work and compensations through its operating branches and offices in Palestine.