Kuwait Financial Centre-Markaz (KUW:MARKAZ) Beneish M-Score : -2.46 (As of May. 11, 2024)

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What is Kuwait Financial Centre-Markaz Beneish M-Score?

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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Kuwait Financial Centre-Markaz's Beneish M-Score or its related term are showing as below:

KUW:MARKAZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52 Med: -2.46 Max: -0.34
Current: -2.46

During the past 13 years, the highest Beneish M-Score of Kuwait Financial Centre-Markaz was -0.34. The lowest was -3.52. And the median was -2.46.

Kuwait Financial Centre-Markaz Beneish M-Score Historical Data

The historical data trend for Kuwait Financial Centre-Markaz's Beneish M-Score can be seen below:

* 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.

* Premium members only.

Kuwait Financial Centre-Markaz Beneish M-Score Chart

Kuwait Financial Centre-Markaz Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.34

-2.37

-2.11

-2.49

-2.46

Kuwait Financial Centre-Markaz Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.49	-2.60	-2.29	-1.98	-2.46

Competitive Comparison of Kuwait Financial Centre-Markaz's Beneish M-Score

For the Asset Management subindustry, Kuwait Financial Centre-Markaz's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Kuwait Financial Centre-Markaz's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Kuwait Financial Centre-Markaz's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kuwait Financial Centre-Markaz's Beneish M-Score falls into.

Kuwait Financial Centre-Markaz 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 Kuwait Financial Centre-Markaz 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 * 1.1259

0.528 * 1

0.404 * 1.0521

0.892 * 0.7887

0.115 * 1.0431

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.759

4.679 * 0.033944

0.327 * 0.8798

-2.46

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was KWD4.98 Mil.
Revenue was 2.285 + 4.008 + 3.2 + 3.386 = KWD12.88 Mil.
Gross Profit was 2.285 + 4.008 + 3.2 + 3.386 = KWD12.88 Mil.
Total Current Assets was KWD99.44 Mil.
Total Assets was KWD170.28 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.37 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD1.44 Mil.
Selling, General, & Admin. Expense(SGA) was KWD4.51 Mil.
Total Current Liabilities was KWD8.92 Mil.
Long-Term Debt & Capital Lease Obligation was KWD42.91 Mil.
Net Income was 3.436 + 2.022 + 1.864 + -3.175 = KWD4.15 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was -3.553 + 5.929 + -4.19 + 0.181 = KWD-1.63 Mil.

Total Receivables was KWD5.61 Mil.
Revenue was 3.579 + 4.298 + 3.564 + 4.889 = KWD16.33 Mil.
Gross Profit was 3.579 + 4.298 + 3.564 + 4.889 = KWD16.33 Mil.
Total Current Assets was KWD127.88 Mil.
Total Assets was KWD211.47 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.58 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD1.81 Mil.
Selling, General, & Admin. Expense(SGA) was KWD3.25 Mil.
Total Current Liabilities was KWD24.63 Mil.
Long-Term Debt & Capital Lease Obligation was KWD48.54 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)
	=	(4.978 / 12.879)	/	(5.606 / 16.33)
	=	0.386521	/	0.343295
	=	1.1259

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)
	=	(16.33 / 16.33)	/	(12.879 / 12.879)
	=	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 - (99.438 + 1.374) / 170.282)	/	(1 - (127.883 + 1.581) / 211.466)
	=	0.40797	/	0.387779
	=	1.0521

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
	=	12.879	/	16.33
	=	0.7887

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))
	=	(1.806 / (1.806 + 1.581))	/	(1.437 / (1.437 + 1.374))
	=	0.533215	/	0.511206
	=	1.0431

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)
	=	(4.51 / 12.879)	/	(3.251 / 16.33)
	=	0.350182	/	0.199081
	=	1.759

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)
	=	((42.913 + 8.921) / 170.282)	/	((48.539 + 24.629) / 211.466)
	=	0.304401	/	0.346004
	=	0.8798

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
	=	(4.147 - 0	-	-1.633)	/	170.282
	=	0.033944

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.

Kuwait Financial Centre-Markaz has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

Kuwait Financial Centre-Markaz Beneish M-Score Related Terms

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Kuwait Financial Centre-Markaz (KUW:MARKAZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Kuwait Financial Centre-Markaz (KUW:MARKAZ) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Ahmad Al Jaber Street, Universal Tower, Floor 3, P.O. Box 23444,, Safat, KWT, 13095

Website

https://www.markaz.com

Kuwait Financial Centre-Markaz is a assets management company. It provides investment banking, Asset management, Real estate management, Wealth management and research.

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