Aradei Capital (CAS:ARD) Beneish M-Score : -2.81 (As of May. 26, 2024)

View and export this data going back to 2020. Start your Free Trial

What is Aradei Capital 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CAS:ARD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -2.31 Max: -1.35
Current: -2.81

During the past 7 years, the highest Beneish M-Score of Aradei Capital was -1.35. The lowest was -3.27. And the median was -2.31.

Aradei Capital Beneish M-Score Historical Data

The historical data trend for Aradei Capital'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.

Aradei Capital Beneish M-Score Chart

Aradei Capital Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.68

-3.27

-2.31

-1.35

-2.81

Aradei Capital Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial							-2.31	-	-1.35	-	-2.81

Competitive Comparison of Aradei Capital's Beneish M-Score

For the Real Estate Services subindustry, Aradei Capital'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.

Aradei Capital's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Aradei Capital's Beneish M-Score distribution charts can be found below:

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

Aradei Capital 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 Aradei Capital 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 * 0.6222

0.528 * 1

0.404 * 0.9825

0.892 * 1.1998

0.115 * 1.1138

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1464

4.679 * -0.02477

0.327 * 1.0772

-2.81

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was MAD295.1 Mil.
Revenue was MAD583.2 Mil.
Gross Profit was MAD583.2 Mil.
Total Current Assets was MAD1,389.2 Mil.
Total Assets was MAD9,063.9 Mil.
Property, Plant and Equipment(Net PPE) was MAD16.8 Mil.
Depreciation, Depletion and Amortization(DDA) was MAD4.1 Mil.
Selling, General, & Admin. Expense(SGA) was MAD0.6 Mil.
Total Current Liabilities was MAD1,349.2 Mil.
Long-Term Debt & Capital Lease Obligation was MAD2,866.5 Mil.
Net Income was MAD271.6 Mil.
Gross Profit was MAD0.0 Mil.
Cash Flow from Operations was MAD496.1 Mil.

Total Receivables was MAD395.3 Mil.
Revenue was MAD486.1 Mil.
Gross Profit was MAD486.1 Mil.
Total Current Assets was MAD1,162.6 Mil.
Total Assets was MAD8,404.1 Mil.
Property, Plant and Equipment(Net PPE) was MAD14.7 Mil.
Depreciation, Depletion and Amortization(DDA) was MAD4.1 Mil.
Selling, General, & Admin. Expense(SGA) was MAD0.4 Mil.
Total Current Liabilities was MAD1,715.1 Mil.
Long-Term Debt & Capital Lease Obligation was MAD1,913.6 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)
	=	(295.093 / 583.182)	/	(395.27 / 486.068)
	=	0.506005	/	0.813199
	=	0.6222

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)
	=	(486.068 / 486.068)	/	(583.182 / 583.182)
	=	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 - (1389.171 + 16.769) / 9063.914)	/	(1 - (1162.56 + 14.68) / 8404.076)
	=	0.844886	/	0.85992
	=	0.9825

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
	=	583.182	/	486.068
	=	1.1998

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))
	=	(4.11 / (4.11 + 14.68))	/	(4.098 / (4.098 + 16.769))
	=	0.218733	/	0.196387
	=	1.1138

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)
	=	(0.571 / 583.182)	/	(0.415 / 486.068)
	=	0.000979	/	0.000854
	=	1.1464

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)
	=	((2866.508 + 1349.155) / 9063.914)	/	((1913.622 + 1715.091) / 8404.076)
	=	0.465104	/	0.43178
	=	1.0772

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
	=	(271.574 - 0	-	496.085)	/	9063.914
	=	-0.02477

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.

Aradei Capital has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.

Aradei Capital Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Aradei Capital's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.