Phoenix 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 Phoenix 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 * 0.4702 | + | 0.528 * 1 | + | 0.404 * 0.9987 | + | 0.892 * 2.8397 | + | 0.115 * 1.0283 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.3936 | + | 4.679 * -0.012505 | - | 0.327 * 1.0285 |
| = | -1.29 |
* 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 ₪2,229 Mil.
Revenue was 7143.046 + 4917.23 + 7827.903 + 4220.175 = ₪24,108 Mil.
Gross Profit was 7143.046 + 4917.23 + 7827.903 + 4220.175 = ₪24,108 Mil.
Total Current Assets was ₪0 Mil.
Total Assets was ₪159,795 Mil.
Property, Plant and Equipment(Net PPE) was ₪1,460 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪499 Mil.
Selling, General, & Admin. Expense(SGA) was ₪959 Mil.
Total Current Liabilities was ₪0 Mil.
Long-Term Debt & Capital Lease Obligation was ₪7,464 Mil.
Net Income was 663.344 + 112.465 + 58.642 + -57.048 = ₪777 Mil.
Non Operating Income was 64.259 + 137.114 + 271.895 + 120.756 = ₪594 Mil.
Cash Flow from Operations was -157.81 + 590.756 + 2615.251 + -866.568 = ₪2,182 Mil.
|
Total Receivables was ₪1,669 Mil.
Revenue was 5215.414 + 1974.943 + -1325.67 + 2625.045 = ₪8,490 Mil.
Gross Profit was 5215.414 + 1974.943 + -1325.67 + 2625.045 = ₪8,490 Mil.
Total Current Assets was ₪0 Mil.
Total Assets was ₪147,517 Mil.
Property, Plant and Equipment(Net PPE) was ₪1,151 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪409 Mil.
Selling, General, & Admin. Expense(SGA) was ₪858 Mil.
Total Current Liabilities was ₪0 Mil.
Long-Term Debt & Capital Lease Obligation was ₪6,700 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) |
| = | (2229.049 / 24108.354) | / | (1669.457 / 8489.732) |
| = | 0.09246 | / | 0.196644 |
| | = | 0.4702 |
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) |
| = | (8489.732 / 8489.732) | / | (24108.354 / 24108.354) |
| = | 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 + 1460.392) / 159794.729) | / | (1 - (0 + 1151.443) / 147517.177) |
| = | 0.990861 | / | 0.992195 |
| | = | 0.9987 |
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 |
| = | 24108.354 | / | 8489.732 |
| | = | 2.8397 |
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)) |
| = | (408.658 / (408.658 + 1151.443)) | / | (499.147 / (499.147 + 1460.392)) |
| = | 0.261943 | / | 0.254727 |
| | = | 1.0283 |
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) |
| = | (958.945 / 24108.354) | / | (857.993 / 8489.732) |
| = | 0.039776 | / | 0.101062 |
| | = | 0.3936 |
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) |
| = | ((7463.981 + 0) / 159794.729) | / | ((6699.722 + 0) / 147517.177) |
| = | 0.04671 | / | 0.045417 |
| | = | 1.0285 |
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 |
| = | (777.403 - 594.024 | - | 2181.629) | / | 159794.729 |
| | = | -0.012505 |
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.
Phoenix Holdings has a M-score of -1.29 signals that the company is likely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XTAE:PHOE has been successfully added to your