Bahrain Commercial Facilities Co BSC (BAH:BCFC) Beneish M-Score : -3.76 (As of May. 24, 2024)

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What is Bahrain Commercial Facilities Co BSC 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.

Good Sign:

Beneish M-Score -3.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Bahrain Commercial Facilities Co BSC's Beneish M-Score or its related term are showing as below:

BAH:BCFC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.76 Med: -2.7 Max: -1.89
Current: -3.76

During the past 13 years, the highest Beneish M-Score of Bahrain Commercial Facilities Co BSC was -1.89. The lowest was -3.76. And the median was -2.70.

Bahrain Commercial Facilities Co BSC 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 Bahrain Commercial Facilities Co BSC 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

0.528 * 1

0.404 * 0.9638

0.892 * 0.9041

0.115 * 1.0825

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1701

4.679 * -0.250956

0.327 * 0.9503

-3.76

* 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 BHD0.00 Mil.
Revenue was BHD56.50 Mil.
Gross Profit was BHD56.50 Mil.
Total Current Assets was BHD0.00 Mil.
Total Assets was BHD219.86 Mil.
Property, Plant and Equipment(Net PPE) was BHD25.42 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD2.07 Mil.
Selling, General, & Admin. Expense(SGA) was BHD6.94 Mil.
Total Current Liabilities was BHD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was BHD101.47 Mil.
Net Income was BHD-30.81 Mil.
Gross Profit was BHD0.00 Mil.
Cash Flow from Operations was BHD24.36 Mil.

Total Receivables was BHD0.00 Mil.
Revenue was BHD62.50 Mil.
Gross Profit was BHD62.50 Mil.
Total Current Assets was BHD0.00 Mil.
Total Assets was BHD298.48 Mil.
Property, Plant and Equipment(Net PPE) was BHD24.61 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD2.18 Mil.
Selling, General, & Admin. Expense(SGA) was BHD6.56 Mil.
Total Current Liabilities was BHD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was BHD144.96 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 / 56.503)	/	(0 / 62.498)
	=	0	/	0
	=	1

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)
	=	(62.498 / 62.498)	/	(56.503 / 56.503)
	=	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 + 25.423) / 219.863)	/	(1 - (0 + 24.613) / 298.478)
	=	0.884369	/	0.917538
	=	0.9638

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
	=	56.503	/	62.498
	=	0.9041

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))
	=	(2.183 / (2.183 + 24.613))	/	(2.069 / (2.069 + 25.423))
	=	0.081467	/	0.075258
	=	1.0825

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)
	=	(6.943 / 56.503)	/	(6.563 / 62.498)
	=	0.122878	/	0.105011
	=	1.1701

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)
	=	((101.473 + 0) / 219.863)	/	((144.958 + 0) / 298.478)
	=	0.461528	/	0.485657
	=	0.9503

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
	=	(-30.812 - 0	-	24.364)	/	219.863
	=	-0.250956

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.

Bahrain Commercial Facilities Co BSC has a M-score of -3.76 suggests that the company is unlikely to be a manipulator.

Bahrain Commercial Facilities Co BSC Beneish M-Score Related Terms

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Bahrain Commercial Facilities Co BSC (BAH:BCFC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Bahrain Commercial Facilities Co BSC (BAH:BCFC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O. Box 1175, Manama, BHR, 701

Website

https://www.bahraincredit.com.bh

Bahrain Commercial Facilities Co BSC provides short-term, medium-term, and long-term loans. It has four operating segments, namely Consumer Lending, Automotive, Real estate, and Insurance. The Consumer Lending segment provides consumer loans and credit cards facilities. The automotive segment includes trading in motor vehicles and spares and the provision of after-sales services. The real estate segment includes buying, selling, and renting properties and providing property evaluation services. The insurance segment is involved in the provision of insurance brokerage services.