Bac Holding International 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 Bac Holding International 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 | + | 0.528 * 1 | + | 0.404 * 1.0006 | + | 0.892 * 1.1818 | + | 0.115 * 0.8032 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8757 | + | 4.679 * 0.010597 | - | 0.327 * 0.7791 |
| = | -2.20 |
* 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 COP0 Mil.
Revenue was 2847377.29 + 2771016.039 + 3187439.638 + 2796277.579 = COP11,602,111 Mil.
Gross Profit was 2847377.29 + 2771016.039 + 3187439.638 + 2796277.579 = COP11,602,111 Mil.
Total Current Assets was COP0 Mil.
Total Assets was COP142,968,414 Mil.
Property, Plant and Equipment(Net PPE) was COP2,290,845 Mil.
Depreciation, Depletion and Amortization(DDA) was COP572,805 Mil.
Selling, General, & Admin. Expense(SGA) was COP711,537 Mil.
Total Current Liabilities was COP0 Mil.
Long-Term Debt & Capital Lease Obligation was COP478,685 Mil.
Net Income was 522230.985 + 537133.783 + 887104.141 + 437793.443 = COP2,384,262 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = COP0 Mil.
Cash Flow from Operations was 2888279.723 + -1100247.186 + -1012948.982 + 94075.633 = COP869,159 Mil.
|
Total Receivables was COP0 Mil.
Revenue was 2869082.56 + 2312590.377 + 2352645.022 + 2283067.431 = COP9,817,385 Mil.
Gross Profit was 2869082.56 + 2312590.377 + 2352645.022 + 2283067.431 = COP9,817,385 Mil.
Total Current Assets was COP0 Mil.
Total Assets was COP153,774,561 Mil.
Property, Plant and Equipment(Net PPE) was COP2,556,371 Mil.
Depreciation, Depletion and Amortization(DDA) was COP489,351 Mil.
Selling, General, & Admin. Expense(SGA) was COP687,564 Mil.
Total Current Liabilities was COP0 Mil.
Long-Term Debt & Capital Lease Obligation was COP660,816 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 / 11602110.546) | / | (0 / 9817385.39) |
| = | 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) |
| = | (9817385.39 / 9817385.39) | / | (11602110.546 / 11602110.546) |
| = | 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 + 2290844.656) / 142968414.366) | / | (1 - (0 + 2556371.219) / 153774560.911) |
| = | 0.983977 | / | 0.983376 |
| | = | 1.0006 |
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 |
| = | 11602110.546 | / | 9817385.39 |
| | = | 1.1818 |
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)) |
| = | (489351.075 / (489351.075 + 2556371.219)) | / | (572804.888 / (572804.888 + 2290844.656)) |
| = | 0.160668 | / | 0.200026 |
| | = | 0.8032 |
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) |
| = | (711537.105 / 11602110.546) | / | (687564.251 / 9817385.39) |
| = | 0.061328 | / | 0.070035 |
| | = | 0.8757 |
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) |
| = | ((478685.034 + 0) / 142968414.366) | / | ((660815.958 + 0) / 153774560.911) |
| = | 0.003348 | / | 0.004297 |
| | = | 0.7791 |
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 |
| = | (2384262.352 - 0 | - | 869159.188) | / | 142968414.366 |
| | = | 0.010597 |
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.
Bac Holding International has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOG:BHI has been successfully added to your