Alisa Bank (OHEL:ALISA) Beneish M-Score : -1.95 (As of May. 17, 2024)

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What is Alisa Bank 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 -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OHEL:ALISA' s Beneish M-Score Range Over the Past 10 Years
Min: -5 Med: -2.7 Max: -0.31
Current: -1.95

During the past 12 years, the highest Beneish M-Score of Alisa Bank was -0.31. The lowest was -5.00. And the median was -2.70.

Alisa Bank 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 Alisa Bank 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 * 0.9988

0.892 * 1.6201

0.115 * 1.4094

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6346

4.679 * -0.028238

0.327 * 0.9912

-1.95

* 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 €0.00 Mil.
Revenue was €16.59 Mil.
Gross Profit was €16.59 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €312.84 Mil.
Property, Plant and Equipment(Net PPE) was €0.52 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.68 Mil.
Selling, General, & Admin. Expense(SGA) was €4.39 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €6.71 Mil.
Net Income was €0.31 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €9.14 Mil.

Total Receivables was €0.00 Mil.
Revenue was €10.24 Mil.
Gross Profit was €10.24 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €291.66 Mil.
Property, Plant and Equipment(Net PPE) was €0.14 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.57 Mil.
Selling, General, & Admin. Expense(SGA) was €4.27 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €6.31 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 / 16.585)	/	(0 / 10.237)
	=	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)
	=	(10.237 / 10.237)	/	(16.585 / 16.585)
	=	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 + 0.516) / 312.841)	/	(1 - (0 + 0.14) / 291.661)
	=	0.998351	/	0.99952
	=	0.9988

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
	=	16.585	/	10.237
	=	1.6201

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))
	=	(0.572 / (0.572 + 0.14))	/	(0.684 / (0.684 + 0.516))
	=	0.803371	/	0.57
	=	1.4094

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)
	=	(4.39 / 16.585)	/	(4.27 / 10.237)
	=	0.264697	/	0.417114
	=	0.6346

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)
	=	((6.713 + 0) / 312.841)	/	((6.314 + 0) / 291.661)
	=	0.021458	/	0.021648
	=	0.9912

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
	=	(0.306 - 0	-	9.14)	/	312.841
	=	-0.028238

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.

Alisa Bank has a M-score of -1.95 suggests that the company is unlikely to be a manipulator.

Alisa Bank Beneish M-Score Related Terms

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Alisa Bank (OHEL:ALISA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Alisa Bank Plc (OHEL:ALISA) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Pursimiehenkatu 4 A, Helsinki, FIN, 00150

Website

https://www.alisapankki.fi

Alisa Bank Plc is a Finnish bank that helps both personal and business customers to manage day-to-day finances in a flexible and straightforward manner. For savers, the bank offers an attractive interest rate on deposits.