Abu Dhabi National Energy Co PJSC (ADX:TAQA) Beneish M-Score : -2.64 (As of May. 01, 2024)

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What is Abu Dhabi National Energy Co PJSC 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Abu Dhabi National Energy Co PJSC's Beneish M-Score or its related term are showing as below:

ADX:TAQA' s Beneish M-Score Range Over the Past 10 Years
Min: -4.93 Med: -2.79 Max: 32.03
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Abu Dhabi National Energy Co PJSC was 32.03. The lowest was -4.93. And the median was -2.79.

Abu Dhabi National Energy Co PJSC Beneish M-Score Historical Data

The historical data trend for Abu Dhabi National Energy Co PJSC'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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Abu Dhabi National Energy Co PJSC Beneish M-Score Chart

Abu Dhabi National Energy Co PJSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.05

32.03

-2.60

-2.70

-2.64

Abu Dhabi National Energy Co PJSC 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															-2.70	-2.50	-2.34	-2.30	-2.64

Competitive Comparison of Abu Dhabi National Energy Co PJSC's Beneish M-Score

For the Utilities - Diversified subindustry, Abu Dhabi National Energy Co PJSC'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.

Abu Dhabi National Energy Co PJSC's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Abu Dhabi National Energy Co PJSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Abu Dhabi National Energy Co PJSC's Beneish M-Score falls into.

Abu Dhabi National Energy Co PJSC 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 Abu Dhabi National Energy Co PJSC 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 * 0.8122

0.528 * 1.0722

0.404 * 1.2101

0.892 * 1.027

0.115 * 1.0155

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4227

4.679 * -0.017892

0.327 * 0.9376

-2.64

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was د.إ7,009 Mil.
Revenue was 12252 + 12821 + 13703 + 13275 = د.إ52,051 Mil.
Gross Profit was 2786 + 3047 + 3267 + 3432 = د.إ12,532 Mil.
Total Current Assets was د.إ27,929 Mil.
Total Assets was د.إ194,000 Mil.
Property, Plant and Equipment(Net PPE) was د.إ115,384 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ9,253 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ583 Mil.
Total Current Liabilities was د.إ31,172 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ55,330 Mil.
Net Income was 1592 + 1560 + 1923 + 11572 = د.إ16,647 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0 Mil.
Cash Flow from Operations was 5900 + 4980 + 3217 + 6021 = د.إ20,118 Mil.

Total Receivables was د.إ8,403 Mil.
Revenue was 10749 + 14165 + 13220 + 12548 = د.إ50,682 Mil.
Gross Profit was 2175 + 3783 + 3634 + 3492 = د.إ13,084 Mil.
Total Current Assets was د.إ24,934 Mil.
Total Assets was د.إ181,622 Mil.
Property, Plant and Equipment(Net PPE) was د.إ117,474 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ9,579 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ399 Mil.
Total Current Liabilities was د.إ35,543 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ50,829 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)
	=	(7009 / 52051)	/	(8403 / 50682)
	=	0.134656	/	0.165799
	=	0.8122

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)
	=	(13084 / 50682)	/	(12532 / 52051)
	=	0.258159	/	0.240764
	=	1.0722

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 - (27929 + 115384) / 194000)	/	(1 - (24934 + 117474) / 181622)
	=	0.261273	/	0.21591
	=	1.2101

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
	=	52051	/	50682
	=	1.027

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))
	=	(9579 / (9579 + 117474))	/	(9253 / (9253 + 115384))
	=	0.075394	/	0.07424
	=	1.0155

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)
	=	(583 / 52051)	/	(399 / 50682)
	=	0.011201	/	0.007873
	=	1.4227

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)
	=	((55330 + 31172) / 194000)	/	((50829 + 35543) / 181622)
	=	0.445887	/	0.475559
	=	0.9376

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
	=	(16647 - 0	-	20118)	/	194000
	=	-0.017892

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.

Abu Dhabi National Energy Co PJSC has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.

Abu Dhabi National Energy Co PJSC Beneish M-Score Related Terms

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Abu Dhabi National Energy Co PJSC (ADX:TAQA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Abu Dhabi National Energy Co PJSC (ADX:TAQA) » Definitions » Beneish M-Score

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Address

Abu Dhabi Global Market Square, 25th Floor, Al Maqam Tower (Tower 3), P.O. Box 55224, Al Maryah Island, Abu Dhabi, ARE

Website

https://www.taqa.com

Abu Dhabi National Energy Co PJSC which is majority-owned by the Abu Dhabi government is a fully integrated leading global energy provider with operations in nine markets around the world. Its segment includes Power and Water Generation segment, Power and Water Transmission and Distribution segment, Oil and Gas segment which is in North America, Europe, and Atrush. These segments provide services in power generation, water desalination, oil and gas exploration, pipelines, as well as gas storage.

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