Makkah Construction & Development Co (SAU:4100) Beneish M-Score : -1.30 (As of May. 09, 2024)

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What is Makkah Construction & Development 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.

Warning Sign:

Beneish M-Score -1.3 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Makkah Construction & Development Co's Beneish M-Score or its related term are showing as below:

SAU:4100' s Beneish M-Score Range Over the Past 10 Years
Min: -3.64 Med: -2.31 Max: -1.3
Current: -1.3

During the past 13 years, the highest Beneish M-Score of Makkah Construction & Development Co was -1.30. The lowest was -3.64. And the median was -2.31.

Makkah Construction & Development Co Beneish M-Score Historical Data

The historical data trend for Makkah Construction & Development 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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Makkah Construction & Development Co Beneish M-Score Chart

Makkah Construction & Development Co Annual Data

Trend

Apr14

Apr15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Dec23

Beneish M-Score

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-2.54

-1.73

-2.62

-1.30

Makkah Construction & Development Co Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Jun21	Sep21	Jan22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.02	-	-1.92	-1.67	-1.30

Competitive Comparison of Makkah Construction & Development Co's Beneish M-Score

For the Lodging subindustry, Makkah Construction & Development 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.

Makkah Construction & Development Co's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Makkah Construction & Development Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Makkah Construction & Development Co's Beneish M-Score falls into.

Makkah Construction & Development 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 Makkah Construction & Development 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

0.528 * 1.2478

0.404 * 1.2445

0.892 * 1.7998

0.115 * 2.2967

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4799

4.679 * -0.011313

0.327 * 0.8561

-1.30

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ﷼0.0 Mil.
Revenue was 133.791 + 249.19 + 207.513 + 140.42 = ﷼730.9 Mil.
Gross Profit was 91.897 + 90.355 + 141.433 + 79.552 = ﷼403.2 Mil.
Total Current Assets was ﷼599.4 Mil.
Total Assets was ﷼4,622.2 Mil.
Property, Plant and Equipment(Net PPE) was ﷼1,324.0 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼8.1 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼66.5 Mil.
Total Current Liabilities was ﷼392.3 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼0.0 Mil.
Net Income was 78.322 + 68.343 + 122.831 + 64.738 = ﷼334.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0.0 Mil.
Cash Flow from Operations was 110.565 + 51.569 + 113.452 + 110.939 = ﷼386.5 Mil.

Total Receivables was ﷼0.0 Mil.
Revenue was 127.769 + 132.518 + 145.812 + 0 = ﷼406.1 Mil.
Gross Profit was 109.662 + 84.025 + 85.875 + 0 = ﷼279.6 Mil.
Total Current Assets was ﷼769.5 Mil.
Total Assets was ﷼3,907.6 Mil.
Property, Plant and Equipment(Net PPE) was ﷼1,304.7 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼18.4 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼77.0 Mil.
Total Current Liabilities was ﷼387.4 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼0.0 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 / 730.914)	/	(0 / 406.099)
	=	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)
	=	(279.562 / 406.099)	/	(403.237 / 730.914)
	=	0.688408	/	0.551689
	=	1.2478

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 - (599.356 + 1324.015) / 4622.168)	/	(1 - (769.52 + 1304.745) / 3907.606)
	=	0.583881	/	0.469172
	=	1.2445

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
	=	730.914	/	406.099
	=	1.7998

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))
	=	(18.364 / (18.364 + 1304.745))	/	(8.05 / (8.05 + 1324.015))
	=	0.013879	/	0.006043
	=	2.2967

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)
	=	(66.536 / 730.914)	/	(77.04 / 406.099)
	=	0.091031	/	0.189707
	=	0.4799

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)
	=	((0 + 392.346) / 4622.168)	/	((0 + 387.43) / 3907.606)
	=	0.084884	/	0.099148
	=	0.8561

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
	=	(334.234 - 0	-	386.525)	/	4622.168
	=	-0.011313

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.

Makkah Construction & Development Co has a M-score of -1.30 signals that the company is likely to be a manipulator.

Makkah Construction & Development Co Beneish M-Score Related Terms

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Makkah Construction & Development Co (SAU:4100) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Makkah Construction & Development Co (SAU:4100) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Al-Azizia General Street, P.O. Box 7134, Fakih Commercial Center, Seventh Floor, Makkah Al-Mukarramah, Mecca, SAU, 21955

Website

https://www.mcdc.com.sa

Makkah Construction & Development Co is engaged in developing construction projects such as developing facilities near the Holy Mosque of Makkah. The companies objectives are Build up the areas around Makkah Holy mosque, Owning, developing, operating and investing the real estate around Makkah Holy mosque and Caring all engineering works, survey, demolishing & constructions works for the company projects.

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