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Crown Paints Kenya (NAI:CRWN) Beneish M-Score : -1.34 (As of Jun. 09, 2024)


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What is Crown Paints Kenya 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.

Warning Sign:

Beneish M-Score -1.34 higher than -1.78, which implies that the company might have manipulated its financial results.

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

NAI:CRWN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74   Med: -2.36   Max: -1.34
Current: -1.34

During the past 13 years, the highest Beneish M-Score of Crown Paints Kenya was -1.34. The lowest was -2.74. And the median was -2.36.


Crown Paints Kenya Beneish M-Score Historical Data

The historical data trend for Crown Paints Kenya'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.

Crown Paints Kenya Beneish M-Score Chart

Crown Paints Kenya Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.38 -2.72 -2.74 -2.33 -1.34

Crown Paints Kenya Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.38 -2.72 -2.74 -2.33 -1.34

Competitive Comparison of Crown Paints Kenya's Beneish M-Score

For the Specialty Chemicals subindustry, Crown Paints Kenya'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.


Crown Paints Kenya's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Crown Paints Kenya's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Crown Paints Kenya's Beneish M-Score falls into.



Crown Paints Kenya 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 Crown Paints Kenya 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 * 1.5097+0.528 * 1.0854+0.404 * 0.9353+0.892 * 1.0611+0.115 * 0.9307
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9334+4.679 * 0.131216-0.327 * 1.0707
=-1.34

* 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 (Dec22) TTM:Last Year (Dec21) TTM:
Total Receivables was KES2,399 Mil.
Revenue was KES11,389 Mil.
Gross Profit was KES4,245 Mil.
Total Current Assets was KES6,910 Mil.
Total Assets was KES9,205 Mil.
Property, Plant and Equipment(Net PPE) was KES2,214 Mil.
Depreciation, Depletion and Amortization(DDA) was KES440 Mil.
Selling, General, & Admin. Expense(SGA) was KES1,556 Mil.
Total Current Liabilities was KES5,114 Mil.
Long-Term Debt & Capital Lease Obligation was KES401 Mil.
Net Income was KES824 Mil.
Gross Profit was KES0 Mil.
Cash Flow from Operations was KES-384 Mil.
Total Receivables was KES1,498 Mil.
Revenue was KES10,733 Mil.
Gross Profit was KES4,343 Mil.
Total Current Assets was KES5,672 Mil.
Total Assets was KES7,807 Mil.
Property, Plant and Equipment(Net PPE) was KES2,062 Mil.
Depreciation, Depletion and Amortization(DDA) was KES376 Mil.
Selling, General, & Admin. Expense(SGA) was KES1,572 Mil.
Total Current Liabilities was KES4,038 Mil.
Long-Term Debt & Capital Lease Obligation was KES331 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)
=(2399.072 / 11388.808) / (1497.646 / 10733.18)
=0.210652 / 0.139534
=1.5097

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)
=(4342.599 / 10733.18) / (4245.189 / 11388.808)
=0.404596 / 0.372751
=1.0854

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 - (6910.074 + 2213.642) / 9204.834) / (1 - (5671.576 + 2062.205) / 7807.348)
=0.008813 / 0.009423
=0.9353

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
=11388.808 / 10733.18
=1.0611

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))
=(376.137 / (376.137 + 2062.205)) / (439.806 / (439.806 + 2213.642))
=0.154259 / 0.165749
=0.9307

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)
=(1556.414 / 11388.808) / (1571.533 / 10733.18)
=0.136662 / 0.146418
=0.9334

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)
=((401.145 + 5114.342) / 9204.834) / ((330.772 + 4038.331) / 7807.348)
=0.599195 / 0.559614
=1.0707

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
=(824.015 - 0 - -383.806) / 9204.834
=0.131216

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.

Crown Paints Kenya has a M-score of -1.34 signals that the company is likely to be a manipulator.


Crown Paints Kenya Beneish M-Score Related Terms

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Crown Paints Kenya (NAI:CRWN) Business Description

Traded in Other Exchanges
N/A
Address
Likoni Road, Industrial Area, P.O. Box 78848, Nairobi, KEN, 00507
Crown Paints Kenya Ltd is a Kenya-based paint manufacturer. The company comprises two business segments - Paints and Adhesives. The Paints segment manufactures and sells paints, decorating sundries, polyvinyl acetate emulsion, and alkyd resins producer. The Adhesives segment manufactures and sells adhesives. It offers decorative paints, automotive paints, industrial paints, road marking paints, and thinners. The company generates majority of its revenue from Paints segment. The company does its sales via geographical segments that include Kenya, Uganda, Tanzania, Rwanda, and others.

Crown Paints Kenya (NAI:CRWN) Headlines

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