Doric Nimrod Air Three (LSE:DNA3) Beneish M-Score : -3.01 (As of May. 15, 2024)

View and export this data going back to 2013. Start your Free Trial

What is Doric Nimrod Air Three 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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Doric Nimrod Air Three's Beneish M-Score or its related term are showing as below:

LSE:DNA3' s Beneish M-Score Range Over the Past 10 Years
Min: -4 Med: -3.6 Max: -1.46
Current: -3.01

During the past 7 years, the highest Beneish M-Score of Doric Nimrod Air Three was -1.46. The lowest was -4.00. And the median was -3.60.

Doric Nimrod Air Three 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 Doric Nimrod Air Three 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 * 1.196

0.892 * 1.0777

0.115 * 1.0356

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9959

4.679 * -0.185149

0.327 * 0.4364

-3.01

* 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 (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was £0.00 Mil.
Revenue was £69.29 Mil.
Gross Profit was £69.29 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £208.57 Mil.
Property, Plant and Equipment(Net PPE) was £194.26 Mil.
Depreciation, Depletion and Amortization(DDA) was £30.17 Mil.
Selling, General, & Admin. Expense(SGA) was £0.67 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £24.14 Mil.
Net Income was £29.57 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £68.19 Mil.

Total Receivables was £0.00 Mil.
Revenue was £64.30 Mil.
Gross Profit was £64.30 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £246.13 Mil.
Property, Plant and Equipment(Net PPE) was £232.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £37.52 Mil.
Selling, General, & Admin. Expense(SGA) was £0.63 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £65.26 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 / 69.292)	/	(0 / 64.298)
	=	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)
	=	(64.298 / 64.298)	/	(69.292 / 69.292)
	=	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 + 194.258) / 208.572)	/	(1 - (0 + 232.004) / 246.127)
	=	0.068629	/	0.057381
	=	1.196

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
	=	69.292	/	64.298
	=	1.0777

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))
	=	(37.523 / (37.523 + 232.004))	/	(30.17 / (30.17 + 194.258))
	=	0.139218	/	0.134431
	=	1.0356

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)
	=	(0.674 / 69.292)	/	(0.628 / 64.298)
	=	0.009727	/	0.009767
	=	0.9959

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)
	=	((24.136 + 0) / 208.572)	/	((65.264 + 0) / 246.127)
	=	0.11572	/	0.265164
	=	0.4364

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
	=	(29.571 - 0	-	68.188)	/	208.572
	=	-0.185149

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.

Doric Nimrod Air Three has a M-score of -3.01 suggests that the company is unlikely to be a manipulator.

Doric Nimrod Air Three Beneish M-Score Related Terms

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

Doric Nimrod Air Three (LSE:DNA3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Doric Nimrod Air Three Ltd (LSE:DNA3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Dorey Court, Admiral Park, PO Box 156, Saint Peter Port, GGY, GY1 4EU

Website

https://www.dnairthree.com

Doric Nimrod Air Three Ltd is a Guernsey-domiciled company. Its investment objective is to obtain income returns and a capital return for its shareholders by acquiring, leasing, and then selling aircraft. The Company is engaged in a single segment of business, being acquiring, leasing and then selling of the Aircraft. The company has four Airbus A380 aircraft, which it is leasing to Emirates Airline.