Values Cultural Investment (HKSE:01740) Beneish M-Score : 11.42 (As of Jun. 06, 2024)

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What is Values Cultural Investment 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 11.42 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Values Cultural Investment's Beneish M-Score or its related term are showing as below:

HKSE:01740' s Beneish M-Score Range Over the Past 10 Years
Min: -37.61 Med: -0.71 Max: 11.42
Current: 11.42

During the past 8 years, the highest Beneish M-Score of Values Cultural Investment was 11.42. The lowest was -37.61. And the median was -0.71.

Values Cultural Investment Beneish M-Score Historical Data

The historical data trend for Values Cultural Investment'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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Values Cultural Investment Beneish M-Score Chart

Values Cultural Investment Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.57

-2.53

-37.61

0.99

11.42

Values Cultural Investment Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial									-37.61	-	0.99	-	11.42

Competitive Comparison of Values Cultural Investment's Beneish M-Score

For the Entertainment subindustry, Values Cultural Investment'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.

Values Cultural Investment's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Values Cultural Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Values Cultural Investment's Beneish M-Score falls into.

Values Cultural Investment 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 Values Cultural Investment 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 * 0.0289

0.528 * 9.67

0.404 * 1.2323

0.892 * 15.0677

0.115 * 0.5392

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.1007

4.679 * -0.507201

0.327 * 1.4655

11.42

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$58.12 Mil.
Revenue was HK$68.81 Mil.
Gross Profit was HK$-66.83 Mil.
Total Current Assets was HK$217.00 Mil.
Total Assets was HK$223.79 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.34 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.06 Mil.
Selling, General, & Admin. Expense(SGA) was HK$13.41 Mil.
Total Current Liabilities was HK$28.73 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 Mil.
Net Income was HK$-108.77 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$4.74 Mil.

Total Receivables was HK$133.65 Mil.
Revenue was HK$4.57 Mil.
Gross Profit was HK$-42.89 Mil.
Total Current Assets was HK$328.09 Mil.
Total Assets was HK$337.29 Mil.
Property, Plant and Equipment(Net PPE) was HK$1.31 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.91 Mil.
Selling, General, & Admin. Expense(SGA) was HK$8.84 Mil.
Total Current Liabilities was HK$29.55 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 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)
	=	(58.116 / 68.814)	/	(133.654 / 4.567)
	=	0.844537	/	29.265163
	=	0.0289

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)
	=	(-42.887 / 4.567)	/	(-66.826 / 68.814)
	=	-9.390628	/	-0.971111
	=	9.67

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 - (217.001 + 0.337) / 223.787)	/	(1 - (328.089 + 1.313) / 337.29)
	=	0.028818	/	0.023386
	=	1.2323

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
	=	68.814	/	4.567
	=	15.0677

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))
	=	(0.909 / (0.909 + 1.313))	/	(1.06 / (1.06 + 0.337))
	=	0.409091	/	0.758769
	=	0.5392

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)
	=	(13.411 / 68.814)	/	(8.84 / 4.567)
	=	0.194888	/	1.935625
	=	0.1007

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 + 28.729) / 223.787)	/	((0 + 29.546) / 337.29)
	=	0.128377	/	0.087598
	=	1.4655

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
	=	(-108.77 - 0	-	4.735)	/	223.787
	=	-0.507201

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.

Values Cultural Investment has a M-score of 11.42 signals that the company is likely to be a manipulator.

Values Cultural Investment Beneish M-Score Related Terms

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Values Cultural Investment (HKSE:01740) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Values Cultural Investment Ltd (HKSE:01740) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

11 Hoi Shing Road, Room 16, 28th Floor, One Midtown, Tsuen Wan, New Territories, Hong Kong, HKG

Website

http://www.yuanshimedia.com

Values Cultural Investment Ltd is an investment holding company. It is engaged in licensing of broadcasting rights of TV series, investing in TV series and web series as a non-executive producer, and acting as a distribution agent of TV series. The company's customers include TV stations, companies that are engaged in the business of distribution of TV series, executive producers, and copyright owners of the TV series.

Executives

Wei Xian	2201 Interest of corporation controlled by you
Bai Yang	2201 Interest of corporation controlled by you
Liu Naiyue	2201 Interest of corporation controlled by you
Liu Peiyao	2201 Interest of corporation controlled by you
Wu Tao	2201 Interest of corporation controlled by you
Yu Jinmei	2202 Interest of your spouse
Syyt Investment Limited	2101 Beneficial owner
Sun Xianliang	2201 Interest of corporation controlled by you
Hangzhou Baihuiquan Equity Investment Fund Partnership (limited Partnership)	2501 Other
Lu Min	2202 Interest of your spouse
Sdjz Investment Limited	2101 Beneficial owner
Shao Hui	2201 Interest of corporation controlled by you
Tibet Langrun Investment Management Co., Ltd.	2501 Other
Xu Jun
Blw Investment Limited	2101 Beneficial owner

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