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Homeinns Hotel Group (NAS:HMIN)
Beneish M-Score
0.00 (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.

Homeinns Hotel Group has a M-score of signals that the company is a manipulator.

HMIN' s 10-Year Beneish M-Score Range
Min: -9.8   Max: -1.03
Current: 0

-9.8
-1.03

During the past 13 years, the highest Beneish M-Score of Homeinns Hotel Group was -1.03. The lowest was -9.80. And the median was -2.17.


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 Homeinns Hotel Group 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $20 Mil.
Revenue was 221.542653801 + 248.033480917 + 287.452673422 + 255.836356049 = $1,013 Mil.
Gross Profit was 11.8510563267 + 32.6674853763 + 64.7067544231 + 51.3568516676 = $161 Mil.
Total Current Assets was $194 Mil.
Total Assets was $1,464 Mil.
Property, Plant and Equipment(Net PPE) was $626 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General & Admin. Expense(SGA) was $68 Mil.
Total Current Liabilities was $406 Mil.
Long-Term Debt was $52 Mil.
Net Income was -6.02234475684 + 13.6656109621 + 39.9973933726 + 17.360446827 = $65 Mil.
Non Operating Income was -2.21459942936 + 6.13418220599 + 9.15186862598 + -3.47799569865 = $10 Mil.
Cash Flow from Operations was 0 + 217.368710209 + 0 + 0 = $217 Mil.
Accounts Receivable was $0 Mil.
Revenue was 223.261623198 + 248.797003622 + 266.831699346 + 244.97424193 = $984 Mil.
Gross Profit was 20.7255791349 + 38.4142245637 + 54.9866013072 + 44.4819041409 = $159 Mil.
Total Current Assets was $0 Mil.
Total Assets was $0 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $118 Mil.
Selling, General & Admin. Expense(SGA) was $70 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $0 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)
=(19.6874298721 / 1012.86516419) / (0 / 983.864568096)
=0.01943736 / 0
=

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)
=(32.6674853763 / 983.864568096) / (11.8510563267 / 1012.86516419)
=0.16120949 / 0.15854247
=

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 - (193.753245921 + 625.63219312) / 1464.0436957) / (1 - (0 + 0) / 0)
=0.4403272 /
=

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
=1012.86516419 / 983.864568096
=

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))
=(117.629568653 / (117.629568653 + 0)) / (124.407943638 / (124.407943638 + 625.63219312))
=1 / 0.16586838
=

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)
=(68.0592071116 / 1012.86516419) / (70.1770240969 / 983.864568096)
=0.06719474 / 0.07132793
=

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)
=((51.6457217966 + 406.32786202) / 1464.0436957) / ((0 + 0) / 0)
=0.31281415 /
=

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
=(65.0011064049 - 9.59345570397 - 217.368710209) / 1464.0436957
=-0.1106

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.

Homeinns Hotel Group has a M-score of signals that the company is likely to 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.

Homeinns Hotel Group Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.37291.11010.74181.09061.14041.50770.73121.10560.7658
GMI 1.81761.14581.5970.80210.72861.39281.27770.90960.9412
AQI 0.37143.1291.03061.02860.65943.56281.09170.93431.0596
SGI 2.12571.8211.99041.39291.25151.30611.48671.12941.0326
DEPI 0.88581.30190.76280.71120.99061.23630.75470.94320.9292
SGAI 0.46790.90890.81730.84550.88191.34540.93150.74390.9469
LVGI 0.66611.91980.84960.59010.70292.00320.83081.31480.7926
TATA -0.0859-0.0376-0.0905-0.1383-0.0925-0.0648-0.0806-0.0956-0.1037
M-score -1.17-1.14-1.88-2.66-2.72-1.16-2.45-2.85-3.09

Homeinns Hotel Group Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 10.73390.74660.69980.92310.84271.07630.89841
GMI 1.74581.40591.12050.90010.78710.79380.84370.94261.0168
AQI 0.9621.08261.00890.97140.93430.93781.05971.05961.0993
SGI 2.23811.91021.67671.47931.13191.08751.07561.04371.0295
DEPI 7.0690.7530.7570.72350.94320.91250.89910.92926.0289
SGAI 0.69870.6410.69870.91160.92781.0751.04210.94620.9421
LVGI 1.2540.79491.28971.28480.87680.71010.49360.86480.8155
TATA -0.0809-0.075-0.0638-0.053-0.0957-0.089-0.0899-0.1037-0.1106
M-score -0.71-1.92-2.41-2.75-2.97-3.03-2.67-2.98-2.27
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