Komunalac a.d (XBLB:KMNC-R-A) Beneish M-Score : -1.08 (As of May. 23, 2024)

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What is Komunalac a.d 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 -1.08 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Komunalac a.d's Beneish M-Score or its related term are showing as below:

XBLB:KMNC-R-A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.5 Max: -1.08
Current: -1.08

During the past 12 years, the highest Beneish M-Score of Komunalac a.d was -1.08. The lowest was -3.02. And the median was -2.50.

Komunalac a.d Beneish M-Score Historical Data

The historical data trend for Komunalac a.d'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.

* Premium members only.

Komunalac a.d Beneish M-Score Chart

Komunalac a.d Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.59

-2.50

-1.86

-2.50

-1.08

Komunalac a.d Semi-Annual Data
	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Beneish M-Score	Get a 7-Day Free Trial							-2.59	-2.50	-1.86	-2.50	-1.08

Competitive Comparison of Komunalac a.d's Beneish M-Score

For the Waste Management subindustry, Komunalac a.d'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.

Komunalac a.d's Beneish M-Score Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Komunalac a.d's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Komunalac a.d's Beneish M-Score falls into.

Komunalac a.d 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 Komunalac a.d 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 * 0.8223

0.528 * 0.999

0.404 * 5.1477

0.892 * 1.0814

0.115 * 0.7928

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.009431

0.327 * 1.6363

-1.08

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was BAM0.86 Mil.
Revenue was BAM5.87 Mil.
Gross Profit was BAM4.04 Mil.
Total Current Assets was BAM1.60 Mil.
Total Assets was BAM10.50 Mil.
Property, Plant and Equipment(Net PPE) was BAM6.03 Mil.
Depreciation, Depletion and Amortization(DDA) was BAM0.32 Mil.
Selling, General, & Admin. Expense(SGA) was BAM0.00 Mil.
Total Current Liabilities was BAM1.13 Mil.
Long-Term Debt & Capital Lease Obligation was BAM0.00 Mil.
Net Income was BAM0.03 Mil.
Gross Profit was BAM0.00 Mil.
Cash Flow from Operations was BAM-0.07 Mil.

Total Receivables was BAM0.97 Mil.
Revenue was BAM5.43 Mil.
Gross Profit was BAM3.73 Mil.
Total Current Assets was BAM1.77 Mil.
Total Assets was BAM9.98 Mil.
Property, Plant and Equipment(Net PPE) was BAM7.68 Mil.
Depreciation, Depletion and Amortization(DDA) was BAM0.32 Mil.
Selling, General, & Admin. Expense(SGA) was BAM0.00 Mil.
Total Current Liabilities was BAM0.66 Mil.
Long-Term Debt & Capital Lease Obligation was BAM0.00 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)
	=	(0.859 / 5.873)	/	(0.966 / 5.431)
	=	0.146263	/	0.177868
	=	0.8223

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)
	=	(3.733 / 5.431)	/	(4.041 / 5.873)
	=	0.68735	/	0.688064
	=	0.999

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 - (1.596 + 6.026) / 10.497)	/	(1 - (1.766 + 7.683) / 9.98)
	=	0.273888	/	0.053206
	=	5.1477

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
	=	5.873	/	5.431
	=	1.0814

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))
	=	(0.316 / (0.316 + 7.683))	/	(0.316 / (0.316 + 6.026))
	=	0.039505	/	0.049827
	=	0.7928

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 / 5.873)	/	(0 / 5.431)
	=	0	/	0
	=	1

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 + 1.129) / 10.497)	/	((0 + 0.656) / 9.98)
	=	0.107555	/	0.065731
	=	1.6363

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
	=	(0.034 - 0	-	-0.065)	/	10.497
	=	0.009431

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.

Komunalac a.d has a M-score of -1.08 signals that the company is likely to be a manipulator.

Komunalac a.d Beneish M-Score Related Terms

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Komunalac a.d (XBLB:KMNC-R-A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Komunalac a.d (XBLB:KMNC-R-A) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ulica Milosa Crnjanskog 7, Bijeljina, BIH, 76300

Website

http://www.komunalacbn.com

Komunalac a.d operates as a waste management service provider in Bosnia and Herzegovina. The activities of the company include solid waste disposal, collection of recyclable waste, maintenance of public transport, maintenance of green areas, maintaining timber and planting new seedlings, production and sale of flowers for urban greenery, and services for special utility vehicles.

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