Natural Food International Holding (HKSE:01837) Beneish M-Score : -2.67 (As of May. 21, 2024)

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What is Natural Food International Holding 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Natural Food International Holding's Beneish M-Score or its related term are showing as below:

HKSE:01837' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68 Med: -2.48 Max: -1.78
Current: -2.67

During the past 9 years, the highest Beneish M-Score of Natural Food International Holding was -1.78. The lowest was -2.68. And the median was -2.48.

Natural Food International Holding Beneish M-Score Historical Data

The historical data trend for Natural Food International Holding'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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Natural Food International Holding Beneish M-Score Chart

Natural Food International Holding Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.59

-2.14

-2.30

-2.68

-2.67

Natural Food International Holding Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial											-2.30	-	-2.68	-	-2.67

Competitive Comparison of Natural Food International Holding's Beneish M-Score

For the Packaged Foods subindustry, Natural Food International Holding'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.

Natural Food International Holding's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Natural Food International Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Natural Food International Holding's Beneish M-Score falls into.

Natural Food International Holding 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 Natural Food International Holding 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 * 1.0356

0.528 * 0.9979

0.404 * 0.5364

0.892 * 1.0514

0.115 * 0.8201

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9581

4.679 * -0.019925

0.327 * 0.9143

-2.67

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$294 Mil.
Revenue was HK$2,018 Mil.
Gross Profit was HK$1,292 Mil.
Total Current Assets was HK$1,428 Mil.
Total Assets was HK$1,839 Mil.
Property, Plant and Equipment(Net PPE) was HK$370 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$43 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,091 Mil.
Total Current Liabilities was HK$298 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2 Mil.
Net Income was HK$167 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$203 Mil.

Total Receivables was HK$270 Mil.
Revenue was HK$1,920 Mil.
Gross Profit was HK$1,227 Mil.
Total Current Assets was HK$1,234 Mil.
Total Assets was HK$1,696 Mil.
Property, Plant and Equipment(Net PPE) was HK$392 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$36 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,083 Mil.
Total Current Liabilities was HK$297 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5 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)
	=	(293.714 / 2018.323)	/	(269.75 / 1919.715)
	=	0.145524	/	0.140516
	=	1.0356

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)
	=	(1226.582 / 1919.715)	/	(1292.282 / 2018.323)
	=	0.63894	/	0.640275
	=	0.9979

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 - (1428.311 + 370.019) / 1839.032)	/	(1 - (1234.322 + 391.816) / 1696.127)
	=	0.022132	/	0.041264
	=	0.5364

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
	=	2018.323	/	1919.715
	=	1.0514

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))
	=	(36.204 / (36.204 + 391.816))	/	(42.552 / (42.552 + 370.019))
	=	0.084585	/	0.103139
	=	0.8201

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)
	=	(1091.062 / 2018.323)	/	(1083.195 / 1919.715)
	=	0.540578	/	0.564248
	=	0.9581

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)
	=	((1.898 + 297.913) / 1839.032)	/	((5.289 + 297.148) / 1696.127)
	=	0.163027	/	0.17831
	=	0.9143

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
	=	(166.665 - 0	-	203.308)	/	1839.032
	=	-0.019925

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.

Natural Food International Holding has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

Natural Food International Holding Beneish M-Score Related Terms

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Natural Food International Holding (HKSE:01837) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Natural Food International Holding Ltd (HKSE:01837) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Yuehei Street, No. 8 Haitian 1st Road, 7th Floor, West Tower, Baidu International Building, Binhai Community, Nanshan District, Shenzhen, CHN

Website

http://www.szwgmf.com

Natural Food International Holding Ltd is a natural health food company. Along with its subsidiaries, the company is engaged in processing and selling natural health food in the People's Republic of China. The group sells its products through an extensive network of offline concessionary counters as well as online channels, including e-commerce platforms and self-operated WeChat member stores, of which the majority of revenue is derived through sales made by offline channels. Geographically, the company generates a majority of its revenue from the People's Republic of China.

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