Clal Insurance Enterprises Holdings 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 Clal Insurance Enterprises Holdings for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 0.8582 | + | 0.528 * 1 | + | 0.404 * 1.0003 | + | 0.892 * 1.2509 | + | 0.115 * 1.5746 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0533 | + | 4.679 * -0.013963 | - | 0.327 * 0.9309 |
| = | -2.37 |
* 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 ₪19,433 Mil.
Revenue was 6926 + 8037 + 4332 + 7536 = ₪26,831 Mil.
Gross Profit was 6926 + 8037 + 4332 + 7536 = ₪26,831 Mil.
Total Current Assets was ₪0 Mil.
Total Assets was ₪170,097 Mil.
Property, Plant and Equipment(Net PPE) was ₪979 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪494 Mil.
Selling, General, & Admin. Expense(SGA) was ₪1,539 Mil.
Total Current Liabilities was ₪0 Mil.
Long-Term Debt & Capital Lease Obligation was ₪690 Mil.
Net Income was 336 + 128 + 214 + 41 = ₪719 Mil.
Non Operating Income was 342 + 417 + 381 + 354 = ₪1,494 Mil.
Cash Flow from Operations was 387 + 555 + -362 + 1020 = ₪1,600 Mil.
|
Total Receivables was ₪18,102 Mil.
Revenue was 6170 + 4182 + 7015 + 4082 = ₪21,449 Mil.
Gross Profit was 6170 + 4182 + 7015 + 4082 = ₪21,449 Mil.
Total Current Assets was ₪0 Mil.
Total Assets was ₪163,617 Mil.
Property, Plant and Equipment(Net PPE) was ₪983 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪1,100 Mil.
Selling, General, & Admin. Expense(SGA) was ₪1,168 Mil.
Total Current Liabilities was ₪0 Mil.
Long-Term Debt & Capital Lease Obligation was ₪713 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) |
| = | (19433 / 26831) | / | (18102 / 21449) |
| = | 0.724274 | / | 0.843955 |
| | = | 0.8582 |
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) |
| = | (21449 / 21449) | / | (26831 / 26831) |
| = | 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 + 979) / 170097) | / | (1 - (0 + 983) / 163617) |
| = | 0.994244 | / | 0.993992 |
| | = | 1.0003 |
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 |
| = | 26831 | / | 21449 |
| | = | 1.2509 |
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)) |
| = | (1100 / (1100 + 983)) | / | (494 / (494 + 979)) |
| = | 0.528084 | / | 0.33537 |
| | = | 1.5746 |
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) |
| = | (1539 / 26831) | / | (1168 / 21449) |
| = | 0.057359 | / | 0.054455 |
| | = | 1.0533 |
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) |
| = | ((690 + 0) / 170097) | / | ((713 + 0) / 163617) |
| = | 0.004057 | / | 0.004358 |
| | = | 0.9309 |
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 |
| = | (719 - 1494 | - | 1600) | / | 170097 |
| | = | -0.013963 |
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.
Clal Insurance Enterprises Holdings has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.
Clal Insurance Enterprises Holdings Business Description
Traded in Other Exchanges
N/A
Address
36 Raul Wallenberg Road, Kiryat Atidim, Tower 8, Tel Aviv, ISR, 6136902
Clal Insurance Enterprises Holdings Ltd is an insurance company, part of IDB Group, a conglomerate from Israel. Its lines of business are Nonlife insurance, Health insurance, Pensions, and provident funds for private and corporate clients. Clal insurance divisions are nonlife insurance, long-term savings, and health. The nonlife insurance division offers automotive, property, personal accidents, guarantees, liability, and marine insurance, among others. The life insurance and long-term savings division manages long-term assets, such as life insurance, pensions, and funds. The health insurance division consists of health insurance products, such as local and overseas surgeries, transplants, medications, critical illness, long-term care, and accidents. The company's main market is Israel.
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