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CTT Systems AB (CHIX:CTTS) Beneish M-Score : -2.63 (As of May. 13, 2024)


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What is CTT Systems AB 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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHIX:CTTs' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Med: -2.45   Max: -1.64
Current: -2.63

During the past 13 years, the highest Beneish M-Score of CTT Systems AB was -1.64. The lowest was -3.39. And the median was -2.45.


CTT Systems AB Beneish M-Score Historical Data

The historical data trend for CTT Systems AB'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.

CTT Systems AB Beneish M-Score Chart

CTT Systems AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.65 -1.85 -2.98 -1.79 -2.58

CTT Systems AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.64 -2.25 -2.23 -2.58 -2.63

Competitive Comparison of CTT Systems AB's Beneish M-Score

For the Aerospace & Defense subindustry, CTT Systems AB'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.


CTT Systems AB's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, CTT Systems AB's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CTT Systems AB's Beneish M-Score falls into.



CTT Systems AB 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 CTT Systems AB 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 * 0.9575+0.404 * 0.9165+0.892 * 1.1715+0.115 * 1.0235
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.100495-0.327 * 0.8367
=-2.63

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was kr67.6 Mil.
Revenue was 78.2 + 81.2 + 73.7 + 79 = kr312.1 Mil.
Gross Profit was 64.6 + 69.9 + 58.7 + 65.2 = kr258.4 Mil.
Total Current Assets was kr321.6 Mil.
Total Assets was kr444.8 Mil.
Property, Plant and Equipment(Net PPE) was kr40.5 Mil.
Depreciation, Depletion and Amortization(DDA) was kr8.3 Mil.
Selling, General, & Admin. Expense(SGA) was kr0.0 Mil.
Total Current Liabilities was kr61.4 Mil.
Long-Term Debt & Capital Lease Obligation was kr42.4 Mil.
Net Income was 24.5 + 27.5 + 25.3 + 24.8 = kr102.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.0 Mil.
Cash Flow from Operations was 26.1 + 30.4 + 28.1 + 62.2 = kr146.8 Mil.
Total Receivables was kr0.0 Mil.
Revenue was 75 + 67.7 + 65.3 + 58.4 = kr266.4 Mil.
Gross Profit was 53.9 + 54.9 + 55.1 + 47.3 = kr211.2 Mil.
Total Current Assets was kr279.1 Mil.
Total Assets was kr403.7 Mil.
Property, Plant and Equipment(Net PPE) was kr42.7 Mil.
Depreciation, Depletion and Amortization(DDA) was kr9.0 Mil.
Selling, General, & Admin. Expense(SGA) was kr27.0 Mil.
Total Current Liabilities was kr69.9 Mil.
Long-Term Debt & Capital Lease Obligation was kr42.7 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)
=(67.6 / 312.1) / (0 / 266.4)
=0.216597 / 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)
=(211.2 / 266.4) / (258.4 / 312.1)
=0.792793 / 0.82794
=0.9575

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 - (321.6 + 40.5) / 444.8) / (1 - (279.1 + 42.7) / 403.7)
=0.185926 / 0.202873
=0.9165

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
=312.1 / 266.4
=1.1715

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))
=(9 / (9 + 42.7)) / (8.3 / (8.3 + 40.5))
=0.174081 / 0.170082
=1.0235

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 / 312.1) / (27 / 266.4)
=0 / 0.101351
=0

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)
=((42.4 + 61.4) / 444.8) / ((42.7 + 69.9) / 403.7)
=0.233363 / 0.27892
=0.8367

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
=(102.1 - 0 - 146.8) / 444.8
=-0.100495

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.

CTT Systems AB has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.


CTT Systems AB Beneish M-Score Related Terms

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CTT Systems AB (CHIX:CTTS) Business Description

Traded in Other Exchanges
Address
Brukslagarvagen 5, Box 1042, Nykoping, SWE, 61129
CTT Systems AB manufacturer and provider of humidity control systems for aircraft. The company offers a Zonal Drying system that prevents condensation within an aircraft during humidification. The company's product line includes various humidifiers. It sells its products to aircraft manufacturers and transportation companies. The group's products, Zonal Drying System and Cair create conditions facilitating improved profitability and flight safety as well as considerably enhanced comfort for passengers and cabin personnel. It supplies these systems to aircraft manufacturers for installation during the production of new aircraft and to airlines for existing aircraft fleets. Geographically company generates the majority of its revenue from Denmark.

CTT Systems AB (CHIX:CTTS) Headlines

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