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China Yuchai International Ltd (NYSE:CYD)
Beneish M-Score
-2.49 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

China Yuchai International Ltd has a M-score of -2.49 suggests that the company is not a manipulator.

CYD' s 10-Year Beneish M-Score Range
Min: -3.63   Max: -1.15
Current: -2.49

-3.63
-1.15

During the past 13 years, the highest Beneish M-Score of China Yuchai International Ltd was -1.15. The lowest was -3.63. And the median was -2.19.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 China Yuchai International Ltd for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9177+0.528 * 1.026+0.404 * 0.8777+0.892 * 1.0253+0.115 * 0.9959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9974+4.679 * 0.0091-0.327 * 0.9033
=-2.49

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $64 Mil.
Revenue was 633.567365802 + 611.284904369 + 676.066189452 + 737.203952697 = $2,658 Mil.
Gross Profit was 156.754839544 + 116.598677137 + 131.101017559 + 127.709865543 = $532 Mil.
Total Current Assets was $2,085 Mil.
Total Assets was $3,034 Mil.
Property, Plant and Equipment(Net PPE) was $721 Mil.
Depreciation, Depletion and Amortization(DDA) was $68 Mil.
Selling, General & Admin. Expense(SGA) was $259 Mil.
Total Current Liabilities was $1,289 Mil.
Long-Term Debt was $174 Mil.
Net Income was 38.9700416896 + 23.4246195953 + 26.5401405964 + 29.1534100113 = $118 Mil.
Non Operating Income was -7.08350838639 + 15.0304649572 + -1.45764452862 + -2.42248501539 = $4 Mil.
Cash Flow from Operations was 86.5601266845 + 0 + 0 + 0 = $87 Mil.
Accounts Receivable was $68 Mil.
Revenue was 689.841455384 + 604.775163399 + 685.927942615 + 611.995494771 = $2,593 Mil.
Gross Profit was 160.781033915 + 120.977941176 + 132.177861102 + 118.60917136 = $533 Mil.
Total Current Assets was $2,240 Mil.
Total Assets was $3,176 Mil.
Property, Plant and Equipment(Net PPE) was $664 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $253 Mil.
Total Current Liabilities was $1,526 Mil.
Long-Term Debt was $169 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(63.7887405875 / 2658.12241232) / (67.7942048074 / 2592.54005617)
=0.02399767 / 0.02614972
=0.9177

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)
=(116.598677137 / 2592.54005617) / (156.754839544 / 2658.12241232)
=0.20541477 / 0.20020312
=1.026

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2084.76989949 + 720.816016547) / 3033.5352099) / (1 - (2239.92295028 + 664.498353638) / 3176.35297991)
=0.07514312 / 0.08561129
=0.8777

4. SGI = Sales Growth Index

Ratio of sales 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
=2658.12241232 / 2592.54005617
=1.0253

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(62.0859400724 / (62.0859400724 + 664.498353638)) / (67.6526193323 / (67.6526193323 + 720.816016547))
=0.08544905 / 0.08580255
=0.9959

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(258.582209272 / 2658.12241232) / (252.870700226 / 2592.54005617)
=0.09728002 / 0.09753782
=0.9974

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((174.145364056 + 1288.79908218) / 3033.5352099) / ((169.311162331 + 1526.40566348) / 3176.35297991)
=0.48225728 / 0.53385654
=0.9033

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
=(118.088211893 - 4.06682702676 - 86.5601266845) / 3033.5352099
=0.0091

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

China Yuchai International Ltd has a M-score of -2.49 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

China Yuchai International Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.25361.08831.51970.75010.77991.37321.66240.06760.88160.9275
GMI 1.26311.21540.90331.03331.01930.78121.10971.04091.04291.0254
AQI 1.19882.39010.82270.69450.89570.9780.7991.01851.07560.8777
SGI 1.07051.39281.37831.09511.27121.26310.99820.88691.21331.0144
DEPI 1.16171.06650.73730.9551.06851.10061.04040.96640.90180.9959
SGAI 1.47250.66720.85941.22390.91661.02960.93011.02520.88890.9978
LVGI 1.21961.15640.99510.94321.07590.97221.05380.90950.99510.9033
TATA -0.0263-0.0620.0445-0.0475-0.2654-0.01810.1389-0.05070.01310.0091
M-score -2.22-1.65-1.58-2.98-3.72-2.10-1.25-3.63-2.27-2.50

China Yuchai International Ltd Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.87490.06311.340.87980.9177
GMI 1.0741.04111.05291.04311.026
AQI 3.62021.01851.00361.07560.8777
SGI 0.9260.89030.92611.21591.0253
DEPI 0.07140.966410.90180.9959
SGAI 0.91011.02540.99330.88930.9974
LVGI 00.90953.31830.99510.9033
TATA 0.1358-0.051-0.04750.01280.0091
M-score -0.69-3.63-3.18-2.28-2.49
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