Blitz Technologies (XTAE:BLTZ) Beneish M-Score : -2.82 (As of Jun. 22, 2024)

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What is Blitz Technologies 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 -2.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XTAE:BLTZ' s Beneish M-Score Range Over the Past 10 Years
Min: -6.9 Med: -2.82 Max: -1.94
Current: -2.82

During the past 11 years, the highest Beneish M-Score of Blitz Technologies was -1.94. The lowest was -6.90. And the median was -2.82.

Blitz Technologies 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 Blitz Technologies 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 * 0.8757

0.892 * 1.1879

0.115 * 0.8458

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7823

4.679 * -0.003393

0.327 * 2.4179

-2.82

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ₪0.00 Mil.
Revenue was ₪9.22 Mil.
Gross Profit was ₪9.22 Mil.
Total Current Assets was ₪0.00 Mil.
Total Assets was ₪13.56 Mil.
Property, Plant and Equipment(Net PPE) was ₪3.18 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪1.53 Mil.
Selling, General, & Admin. Expense(SGA) was ₪17.42 Mil.
Total Current Liabilities was ₪0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ₪4.88 Mil.
Net Income was ₪-12.91 Mil.
Gross Profit was ₪0.00 Mil.
Cash Flow from Operations was ₪-12.87 Mil.

Total Receivables was ₪0.00 Mil.
Revenue was ₪7.76 Mil.
Gross Profit was ₪7.76 Mil.
Total Current Assets was ₪0.00 Mil.
Total Assets was ₪26.91 Mil.
Property, Plant and Equipment(Net PPE) was ₪3.38 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪1.28 Mil.
Selling, General, & Admin. Expense(SGA) was ₪18.75 Mil.
Total Current Liabilities was ₪0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ₪4.00 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 / 9.216)	/	(0 / 7.758)
	=	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)
	=	(7.758 / 7.758)	/	(9.216 / 9.216)
	=	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 + 3.176) / 13.558)	/	(1 - (0 + 3.377) / 26.906)
	=	0.765747	/	0.874489
	=	0.8757

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
	=	9.216	/	7.758
	=	1.1879

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))
	=	(1.277 / (1.277 + 3.377))	/	(1.525 / (1.525 + 3.176))
	=	0.274388	/	0.324399
	=	0.8458

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)
	=	(17.422 / 9.216)	/	(18.747 / 7.758)
	=	1.890408	/	2.416473
	=	0.7823

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)
	=	((4.876 + 0) / 13.558)	/	((4.002 + 0) / 26.906)
	=	0.35964	/	0.14874
	=	2.4179

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
	=	(-12.914 - 0	-	-12.868)	/	13.558
	=	-0.003393

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.

Blitz Technologies has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.

Blitz Technologies Beneish M-Score Related Terms

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Blitz Technologies (XTAE:BLTZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Blitz Technologies Ltd (XTAE:BLTZ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Israel Street Bk 7, Tel Aviv, ISR, 6701912

Website

https://www.blitzmotors.co.il

Blitz Technologies Ltd is engaged in the development, planning, production, marketing, and sale of two-wheeled scooters and electric. The company geographically operates in Israel and Europe.