Mobile Telecommunications Companyudi Arabia (SAU:7030) Beneish M-Score : -2.40 (As of May. 22, 2024)

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What is Mobile Telecommunications Companyudi Arabia 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Mobile Telecommunications Companyudi Arabia's Beneish M-Score or its related term are showing as below:

SAU:7030' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42 Med: -2.72 Max: -1.51
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Mobile Telecommunications Companyudi Arabia was -1.51. The lowest was -3.42. And the median was -2.72.

Mobile Telecommunications Companyudi Arabia Beneish M-Score Historical Data

The historical data trend for Mobile Telecommunications Companyudi Arabia'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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Mobile Telecommunications Companyudi Arabia Beneish M-Score Chart

Mobile Telecommunications Companyudi Arabia Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.18

-2.88

-2.18

-2.08

-2.28

Mobile Telecommunications Companyudi Arabia 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															-2.95	-2.41	-2.27	-2.28	-2.40

Competitive Comparison of Mobile Telecommunications Companyudi Arabia's Beneish M-Score

For the Telecom Services subindustry, Mobile Telecommunications Companyudi Arabia'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.

Mobile Telecommunications Companyudi Arabia's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Mobile Telecommunications Companyudi Arabia's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Mobile Telecommunications Companyudi Arabia's Beneish M-Score falls into.

Mobile Telecommunications Companyudi Arabia 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 Mobile Telecommunications Companyudi Arabia 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 * 1.2277

0.528 * 0.9843

0.404 * 1.0321

0.892 * 1.0726

0.115 * 0.9724

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8991

4.679 * -0.049302

0.327 * 0.9388

-2.40

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ﷼5,810 Mil.
Revenue was 2535.176 + 2542.77 + 2525.34 + 2392.378 = ﷼9,996 Mil.
Gross Profit was 1545.172 + 1477.289 + 1481.486 + 1483.636 = ﷼5,988 Mil.
Total Current Assets was ﷼6,644 Mil.
Total Assets was ﷼26,838 Mil.
Property, Plant and Equipment(Net PPE) was ﷼5,402 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼2,121 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼881 Mil.
Total Current Liabilities was ﷼7,500 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼7,609 Mil.
Net Income was 66.507 + 295.593 + 284.569 + 124.179 = ﷼771 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 234.262 + 645.235 + 862.898 + 351.609 = ﷼2,094 Mil.

Total Receivables was ﷼4,412 Mil.
Revenue was 2422.157 + 2403.866 + 2286.624 + 2206.103 = ﷼9,319 Mil.
Gross Profit was 1414.84 + 1452.308 + 1376.345 + 1250.807 = ﷼5,494 Mil.
Total Current Assets was ﷼7,974 Mil.
Total Assets was ﷼28,907 Mil.
Property, Plant and Equipment(Net PPE) was ﷼5,496 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼2,076 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼914 Mil.
Total Current Liabilities was ﷼8,725 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼8,609 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)
	=	(5809.86 / 9995.664)	/	(4412.007 / 9318.75)
	=	0.581238	/	0.473455
	=	1.2277

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)
	=	(5494.3 / 9318.75)	/	(5987.583 / 9995.664)
	=	0.589596	/	0.599018
	=	0.9843

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 - (6644.047 + 5401.655) / 26837.842)	/	(1 - (7974.352 + 5496.126) / 28906.616)
	=	0.551167	/	0.534
	=	1.0321

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
	=	9995.664	/	9318.75
	=	1.0726

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))
	=	(2075.725 / (2075.725 + 5496.126))	/	(2120.793 / (2120.793 + 5401.655))
	=	0.274137	/	0.281929
	=	0.9724

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)
	=	(881.221 / 9995.664)	/	(913.703 / 9318.75)
	=	0.08816	/	0.09805
	=	0.8991

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)
	=	((7608.83 + 7499.619) / 26837.842)	/	((8609.352 + 8725.131) / 28906.616)
	=	0.562953	/	0.599672
	=	0.9388

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
	=	(770.848 - 0	-	2094.004)	/	26837.842
	=	-0.049302

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.

Mobile Telecommunications Companyudi Arabia has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Mobile Telecommunications Companyudi Arabia Beneish M-Score Related Terms

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Mobile Telecommunications Companyudi Arabia (SAU:7030) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Mobile Telecommunications Company Saudi Arabia (SAU:7030) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Granada Business Park - Building A3, Zain in Saudi Arabia, P.O. Box 295814, Riyadh, SAU, 11351

Website

https://www.sa.zain.com

Mobile Telecommunications Company Saudi Arabia serves in the communication sector based in the Middle East. The company is engaged in the purchases, sells, distributes, installs, manages and maintains mobile telephone services and equipment. It also provides consulting services; constructs and repairs telecom towers and others. The firm's Mobile Telecommunications Group derives the majority of its revenue.

Mobile Telecommunications Companyudi Arabia (SAU:7030) Headlines

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