Nishat Mills (KAR:NML) Beneish M-Score : -2.35 (As of Jun. 03, 2024)

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What is Nishat Mills 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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Nishat Mills's Beneish M-Score or its related term are showing as below:

KAR:NML' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95 Med: -2.22 Max: -1.75
Current: -2.35

During the past 13 years, the highest Beneish M-Score of Nishat Mills was -1.75. The lowest was -2.95. And the median was -2.22.

Nishat Mills Beneish M-Score Historical Data

The historical data trend for Nishat Mills'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.

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Nishat Mills Beneish M-Score Chart

Nishat Mills Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-1.76

-2.60

-2.24

-2.19

-2.12

Nishat Mills Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.13	-2.12	-2.45	-2.29	-2.35

Competitive Comparison of Nishat Mills's Beneish M-Score

For the Textile Manufacturing subindustry, Nishat Mills'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.

Nishat Mills's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nishat Mills's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Nishat Mills's Beneish M-Score falls into.

Nishat Mills 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 Nishat Mills 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 * 1.0478

0.528 * 1.0131

0.404 * 1.0541

0.892 * 1.1032

0.115 * 1.1248

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9996

4.679 * -0.008481

0.327 * 1.0377

-2.35

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₨52,166 Mil.
Revenue was 56507.526 + 46421.526 + 56421.143 + 50447.33 = ₨209,798 Mil.
Gross Profit was 8103.541 + 7754.958 + 8935.648 + 8972.407 = ₨33,767 Mil.
Total Current Assets was ₨128,852 Mil.
Total Assets was ₨266,876 Mil.
Property, Plant and Equipment(Net PPE) was ₨69,544 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨5,793 Mil.
Selling, General, & Admin. Expense(SGA) was ₨10,615 Mil.
Total Current Liabilities was ₨82,900 Mil.
Long-Term Debt & Capital Lease Obligation was ₨24,927 Mil.
Net Income was 1280.797 + 1302.508 + 3519.972 + -120.378 = ₨5,983 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 7966.215 + -11610.431 + 50.073 + 11840.416 = ₨8,246 Mil.

Total Receivables was ₨45,130 Mil.
Revenue was 49187.215 + 41933.921 + 52107.886 + 46948.41 = ₨190,177 Mil.
Gross Profit was 7790.254 + 7603.087 + 8799.918 + 6815.096 = ₨31,008 Mil.
Total Current Assets was ₨116,946 Mil.
Total Assets was ₨229,860 Mil.
Property, Plant and Equipment(Net PPE) was ₨56,962 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨5,393 Mil.
Selling, General, & Admin. Expense(SGA) was ₨9,626 Mil.
Total Current Liabilities was ₨75,634 Mil.
Long-Term Debt & Capital Lease Obligation was ₨13,867 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)
	=	(52166.295 / 209797.525)	/	(45129.611 / 190177.432)
	=	0.248651	/	0.237303
	=	1.0478

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)
	=	(31008.355 / 190177.432)	/	(33766.554 / 209797.525)
	=	0.16305	/	0.160948
	=	1.0131

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 - (128852.017 + 69544.025) / 266875.662)	/	(1 - (116945.568 + 56962.208) / 229859.881)
	=	0.256597	/	0.243418
	=	1.0541

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
	=	209797.525	/	190177.432
	=	1.1032

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))
	=	(5393.232 / (5393.232 + 56962.208))	/	(5793.171 / (5793.171 + 69544.025))
	=	0.086492	/	0.076897
	=	1.1248

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)
	=	(10614.982 / 209797.525)	/	(9626.161 / 190177.432)
	=	0.050596	/	0.050617
	=	0.9996

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)
	=	((24927.002 + 82900.443) / 266875.662)	/	((13866.796 + 75633.664) / 229859.881)
	=	0.404036	/	0.38937
	=	1.0377

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
	=	(5982.899 - 0	-	8246.273)	/	266875.662
	=	-0.008481

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.

Nishat Mills has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.

Nishat Mills Beneish M-Score Related Terms

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Nishat Mills (KAR:NML) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Nishat Mills Ltd (KAR:NML) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

7, Main Gulberg, Lahore, PB, PAK, 54660

Website

https://www.nishatmillsltd.com

Nishat Mills Ltd is a textile manufacturing firm in Pakistan. The firm produces cotton and also owns the weaving facility in Pakistan catering to home textile and apparel fabrics. The company conducts its activities through multiple segments such as Spinning, Weaving, Dyeing, Home Textile and Terry, Garments and Power Generation. Its processing facilities are specially made to handle heavyweight fabrics like twills, drills, canvases/poplins, fabrics with minimum tension such as stretch fabrics and all high-density weaves. The business also exports to Europe, the United States of America, Asia, Africa and Australia. The firm caters to domestic and international markets.