Mega African Capital (XGHA:MAC) Beneish M-Score : -4.59 (As of May. 25, 2024)

View and export this data going back to 2014. Start your Free Trial

What is Mega African Capital 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 -4.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XGHA:MAC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.59 Med: -4.59 Max: -4.59
Current: -4.59

During the past 3 years, the highest Beneish M-Score of Mega African Capital was -4.59. The lowest was -4.59. And the median was -4.59.

Mega African Capital Beneish M-Score Historical Data

The historical data trend for Mega African Capital'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.

Mega African Capital Beneish M-Score Chart

Mega African Capital Annual Data

Trend

Dec20

Dec21

Dec22

Beneish M-Score

-4.59

Mega African Capital Semi-Annual Data
	Dec20	Dec21	Dec22
Beneish M-Score	-	-	-4.59

Competitive Comparison of Mega African Capital's Beneish M-Score

For the Asset Management subindustry, Mega African Capital'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.

Mega African Capital's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Mega African Capital's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Mega African Capital's Beneish M-Score falls into.

Mega African Capital 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 Mega African Capital 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 * 0.1294

0.528 * -2.1317

0.404 * 0.8609

0.892 * 2.2874

0.115 * 0.875

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5254

4.679 * -0.164647

0.327 * 1.1413

-4.59

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was GHS0.23 Mil.
Revenue was GHS0.57 Mil.
Gross Profit was GHS0.24 Mil.
Total Current Assets was GHS104.86 Mil.
Total Assets was GHS197.87 Mil.
Property, Plant and Equipment(Net PPE) was GHS0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS0.00 Mil.
Selling, General, & Admin. Expense(SGA) was GHS0.55 Mil.
Total Current Liabilities was GHS118.30 Mil.
Long-Term Debt & Capital Lease Obligation was GHS0.00 Mil.
Net Income was GHS-26.71 Mil.
Gross Profit was GHS0.00 Mil.
Cash Flow from Operations was GHS5.87 Mil.

Total Receivables was GHS0.77 Mil.
Revenue was GHS0.25 Mil.
Gross Profit was GHS-0.22 Mil.
Total Current Assets was GHS70.75 Mil.
Total Assets was GHS155.84 Mil.
Property, Plant and Equipment(Net PPE) was GHS0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS0.00 Mil.
Selling, General, & Admin. Expense(SGA) was GHS0.46 Mil.
Total Current Liabilities was GHS81.64 Mil.
Long-Term Debt & Capital Lease Obligation was GHS0.00 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)
	=	(0.228 / 0.565)	/	(0.77 / 0.247)
	=	0.40354	/	3.117409
	=	0.1294

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)
	=	(-0.219 / 0.247)	/	(0.235 / 0.565)
	=	-0.88664	/	0.415929
	=	-2.1317

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 - (104.861 + 0.01) / 197.872)	/	(1 - (70.748 + 0.012) / 155.844)
	=	0.470006	/	0.545956
	=	0.8609

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
	=	0.565	/	0.247
	=	2.2874

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))
	=	(0.004 / (0.004 + 0.012))	/	(0.004 / (0.004 + 0.01))
	=	0.25	/	0.285714
	=	0.875

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)
	=	(0.554 / 0.565)	/	(0.461 / 0.247)
	=	0.980531	/	1.866397
	=	0.5254

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 + 118.302) / 197.872)	/	((0 + 81.639) / 155.844)
	=	0.597871	/	0.523851
	=	1.1413

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
	=	(-26.712 - 0	-	5.867)	/	197.872
	=	-0.164647

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.

Mega African Capital has a M-score of -4.59 suggests that the company is unlikely to be a manipulator.

Mega African Capital Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Mega African Capital's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Mega African Capital (XGHA:MAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Mega African Capital Ltd (XGHA:MAC) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Sunyani Avenue, The Alberts, 2nd Floor, No. 23 Kanda Estates, Kanda, Accra, GHA

Website

http://www.megafricancapital.com

Mega African Capital Ltd is an investment company. The company's objective is to seek exposure to the potential to generate high real returns. The company invests across three business lines namely, equity unlisted equity and real estate projects. The Company is authorized to undertake the Development, Purchase, Sales and Rental of Real Estates; Investment In Equities; Fixed Income Investments; and Any other Financial Services.