Methaq Takaful Insurance Co PSC (ADX:METHAQ) Beneish M-Score : 0.00 (As of May. 27, 2024)

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What is Methaq Takaful Insurance Co PSC 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.

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

During the past 13 years, the highest Beneish M-Score of Methaq Takaful Insurance Co PSC was 0.00. The lowest was 0.00. And the median was 0.00.

Methaq Takaful Insurance Co PSC 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 Methaq Takaful Insurance Co PSC 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* 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 (Dec20) TTM:

Last Year (Dec19) TTM:

Total Receivables was د.إ264.0 Mil.
Revenue was 52.296 + 34.206 + 37.174 + 42.342 = د.إ166.0 Mil.
Gross Profit was 52.296 + 34.206 + 37.174 + 42.342 = د.إ166.0 Mil.
Total Current Assets was د.إ0.0 Mil.
Total Assets was د.إ711.1 Mil.
Property, Plant and Equipment(Net PPE) was د.إ1.1 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ0.6 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ38.6 Mil.
Total Current Liabilities was د.إ0.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ0.0 Mil.
Net Income was -3.485 + 13.798 + -10.118 + 8.034 = د.إ8.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0.0 Mil.
Cash Flow from Operations was -0.345 + 2.805 + -14.822 + -8.139 = د.إ-20.5 Mil.

Total Receivables was د.إ277.3 Mil.
Revenue was 27.016 + 80.021 + 50.263 + 53.995 = د.إ211.3 Mil.
Gross Profit was 27.016 + 80.021 + 50.263 + 53.995 = د.إ211.3 Mil.
Total Current Assets was د.إ0.0 Mil.
Total Assets was د.إ685.3 Mil.
Property, Plant and Equipment(Net PPE) was د.إ1.3 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ0.7 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ40.4 Mil.
Total Current Liabilities was د.إ0.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ0.0 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)
	=	(264.01 / 166.018)	/	(277.297 / 211.295)
	=	1.590249	/	1.312369
	=

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)
	=	(211.295 / 211.295)	/	(166.018 / 166.018)
	=	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 + 1.087) / 711.115)	/	(1 - (0 + 1.256) / 685.345)
	=	0.998471	/	0.998167
	=

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
	=	166.018	/	211.295
	=

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))
	=	(0.659 / (0.659 + 1.256))	/	(0.581 / (0.581 + 1.087))
	=	0.344125	/	0.348321
	=

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)
	=	(38.55 / 166.018)	/	(40.353 / 211.295)
	=	0.232204	/	0.190979
	=

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 + 0) / 711.115)	/	((0 + 0) / 685.345)
	=	0	/	0
	=

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
	=	(8.229 - 0	-	-20.501)	/	711.115
	=	0.040401

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.

Methaq Takaful Insurance Co PSC Beneish M-Score Related Terms

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Methaq Takaful Insurance Co PSC (ADX:METHAQ) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Delma 13th Street, Behind Judicial Court, P.O. Box 32774, Building Number: C54, Opposite Al Fara'a Co Tower, Abu Dhabi, ARE

Website

http://www.methaq.ae

Methaq Takaful Insurance Co PSC offers a range of insurance and reinsurance products and services to individuals and corporates. The objective of the company is to offer Individuals and Corporations a complete range of high quality, flexible, integrated, Shariah-compliant insurance products & services, in association with selected Distribution Partners. Its product line includes accident, travel, marine and air transport insurance and reinsurance products, among others.