Sahara International Petrochemical Co (SAU:2310) Beneish M-Score : -2.27 (As of May. 22, 2024)

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What is Sahara International Petrochemical Co 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 -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Sahara International Petrochemical Co's Beneish M-Score or its related term are showing as below:

SAU:2310' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88 Med: -2.58 Max: 1.14
Current: -2.27

During the past 13 years, the highest Beneish M-Score of Sahara International Petrochemical Co was 1.14. The lowest was -3.88. And the median was -2.58.

Sahara International Petrochemical Co Beneish M-Score Historical Data

The historical data trend for Sahara International Petrochemical Co'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.

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Sahara International Petrochemical Co Beneish M-Score Chart

Sahara International Petrochemical Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.48

-2.36

-2.19

-2.98

-2.32

Sahara International Petrochemical Co 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															-2.74	-3.25	-3.02	-2.32	-2.27

Competitive Comparison of Sahara International Petrochemical Co's Beneish M-Score

For the Chemicals subindustry, Sahara International Petrochemical Co'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.

Sahara International Petrochemical Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sahara International Petrochemical Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sahara International Petrochemical Co's Beneish M-Score falls into.

Sahara International Petrochemical Co 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 Sahara International Petrochemical Co 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 * 1.2387

0.528 * 1.6832

0.404 * 1.0436

0.892 * 0.7461

0.115 * 1.0022

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1433

4.679 * -0.04027

0.327 * 0.8398

-2.27

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ﷼1,091 Mil.
Revenue was 1924.631 + 2039.707 + 1789.373 + 1701.554 = ﷼7,455 Mil.
Gross Profit was 480.134 + 428.108 + 457.825 + 527.619 = ﷼1,894 Mil.
Total Current Assets was ﷼4,427 Mil.
Total Assets was ﷼21,948 Mil.
Property, Plant and Equipment(Net PPE) was ﷼11,677 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼913 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼326 Mil.
Total Current Liabilities was ﷼2,322 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼2,088 Mil.
Net Income was 181.507 + 158.658 + 233.085 + 312.917 = ﷼886 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 227.802 + 675.005 + 587.377 + 279.822 = ﷼1,770 Mil.

Total Receivables was ﷼1,181 Mil.
Revenue was 2087.307 + 1954.688 + 2853.423 + 3097.404 = ﷼9,993 Mil.
Gross Profit was 754.915 + 810.243 + 1123.18 + 1583.909 = ﷼4,272 Mil.
Total Current Assets was ﷼5,831 Mil.
Total Assets was ﷼23,795 Mil.
Property, Plant and Equipment(Net PPE) was ﷼11,893 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼932 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼382 Mil.
Total Current Liabilities was ﷼2,792 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼2,902 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)
	=	(1091.108 / 7455.265)	/	(1180.626 / 9992.822)
	=	0.146354	/	0.118147
	=	1.2387

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)
	=	(4272.247 / 9992.822)	/	(1893.686 / 7455.265)
	=	0.427532	/	0.254007
	=	1.6832

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 - (4427.041 + 11676.774) / 21947.645)	/	(1 - (5830.922 + 11892.931) / 23794.965)
	=	0.266262	/	0.255143
	=	1.0436

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
	=	7455.265	/	9992.822
	=	0.7461

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))
	=	(931.846 / (931.846 + 11892.931))	/	(912.78 / (912.78 + 11676.774))
	=	0.07266	/	0.072503
	=	1.0022

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)
	=	(325.839 / 7455.265)	/	(381.991 / 9992.822)
	=	0.043706	/	0.038227
	=	1.1433

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)
	=	((2088.388 + 2321.759) / 21947.645)	/	((2901.571 + 2791.847) / 23794.965)
	=	0.200939	/	0.23927
	=	0.8398

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
	=	(886.167 - 0	-	1770.006)	/	21947.645
	=	-0.04027

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.

Sahara International Petrochemical Co has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Sahara International Petrochemical Co Beneish M-Score Related Terms

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Sahara International Petrochemical Co (SAU:2310) Business Description

Industry

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Address

King Saud Road District, Sipchem Building, Al-Hada District, Al Khobar, SAU, 31952

Website

https://www.sipchem.com

Sahara International Petrochemical Co owns, operates and manages industrial projects relating to chemical and petrochemical industries. The company operating segments include Basic Chemicals, Intermediate Chemicals, Polymers, Trading and Corporate and others. It generates maximum revenue from the Trading segment. The company operates domestically and internationally. Its product portfolio consists of Methanol, Butanediol, Tetrahydrofuran, Acetic Acid, Acetic Anhydride, LDPE, EVA, Cross-Linkable LDPE, Semi Conductive LDPE, and PBT.

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