Oman Qatar Insurance CoOG (MUS:OQIC) Beneish M-Score : -1.48 (As of May. 12, 2024)

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What is Oman Qatar Insurance CoOG 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.

Warning Sign:

Beneish M-Score -1.48 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Oman Qatar Insurance CoOG's Beneish M-Score or its related term are showing as below:

MUS:OQIC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.01 Med: -1.64 Max: -0.39
Current: -1.48

During the past 8 years, the highest Beneish M-Score of Oman Qatar Insurance CoOG was -0.39. The lowest was -2.01. And the median was -1.64.

Oman Qatar Insurance CoOG 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 Oman Qatar Insurance CoOG 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 * 0.0024

0.528 * 1

0.404 * 0.9969

0.892 * 3.0625

0.115 * 1.6787

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5662

4.679 * -0.060744

0.327 * 0.5044

-1.53

* 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 ر.ع0.07 Mil.
Revenue was 14.784 + 16.477 + 6.947 + 5.518 = ر.ع43.73 Mil.
Gross Profit was 14.784 + 16.477 + 6.947 + 5.518 = ر.ع43.73 Mil.
Total Current Assets was ر.ع0.00 Mil.
Total Assets was ر.ع110.94 Mil.
Property, Plant and Equipment(Net PPE) was ر.ع0.73 Mil.
Depreciation, Depletion and Amortization(DDA) was ر.ع0.32 Mil.
Selling, General, & Admin. Expense(SGA) was ر.ع0.95 Mil.
Total Current Liabilities was ر.ع0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ر.ع0.12 Mil.
Net Income was 1.823 + 1.033 + 0.603 + 0.573 = ر.ع4.03 Mil.
Non Operating Income was 0.004 + -0.134 + -0.011 + 0.165 = ر.ع0.02 Mil.
Cash Flow from Operations was -3.783 + 27.732 + -13.477 + 0.275 = ر.ع10.75 Mil.

Total Receivables was ر.ع10.11 Mil.
Revenue was 5.45 + 2.947 + 2.375 + 3.506 = ر.ع14.28 Mil.
Gross Profit was 5.45 + 2.947 + 2.375 + 3.506 = ر.ع14.28 Mil.
Total Current Assets was ر.ع0.00 Mil.
Total Assets was ر.ع74.60 Mil.
Property, Plant and Equipment(Net PPE) was ر.ع0.26 Mil.
Depreciation, Depletion and Amortization(DDA) was ر.ع0.28 Mil.
Selling, General, & Admin. Expense(SGA) was ر.ع0.55 Mil.
Total Current Liabilities was ر.ع0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ر.ع0.16 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)
	=	(0.073 / 43.726)	/	(10.114 / 14.278)
	=	0.001669	/	0.708363
	=	0.0024

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)
	=	(14.278 / 14.278)	/	(43.726 / 43.726)
	=	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 + 0.729) / 110.941)	/	(1 - (0 + 0.262) / 74.596)
	=	0.993429	/	0.996488
	=	0.9969

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
	=	43.726	/	14.278
	=	3.0625

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))
	=	(0.275 / (0.275 + 0.262))	/	(0.32 / (0.32 + 0.729))
	=	0.512104	/	0.305052
	=	1.6787

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)
	=	(0.945 / 43.726)	/	(0.545 / 14.278)
	=	0.021612	/	0.038171
	=	0.5662

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)
	=	((0.12 + 0) / 110.941)	/	((0.16 + 0) / 74.596)
	=	0.001082	/	0.002145
	=	0.5044

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
	=	(4.032 - 0.024	-	10.747)	/	110.941
	=	-0.060744

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.

Oman Qatar Insurance CoOG has a M-score of -1.53 signals that the company is likely to be a manipulator.

Oman Qatar Insurance CoOG Beneish M-Score Related Terms

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Oman Qatar Insurance CoOG (MUS:OQIC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Oman Qatar Insurance Co SAOG (MUS:OQIC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O.Box.3660, Ruwi, OMN, 112

Website

https://www.oqic.com

Oman Qatar Insurance Co SAOG is a life insurance company. It is engaged in the business of life and general insurance within the Sultanate of Oman. The company's segments include: Marine and aviation insurance includes marine cargo, marine hull, and machinery and aviation; Fire and general insurance includes fire, engineering, energy, motor, general accident, medical insurance, and third-party liability; and Group life and credit life insurance.