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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 (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $18.1 Mil.
Revenue was 252.835202733 + 221.542653801 + 248.033480917 + 287.452673422 = $1,009.9 Mil.
Gross Profit was 39.6852639722 + 11.8510563267 + 32.6674853763 + 64.7067544231 = $148.9 Mil.
Total Current Assets was $224.7 Mil.
Total Assets was $1,497.2 Mil.
Property, Plant and Equipment(Net PPE) was $626.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General & Admin. Expense(SGA) was $67.5 Mil.
Total Current Liabilities was $415.7 Mil.
Long-Term Debt was $50.5 Mil.
Net Income was 11.6131631535 + -6.02234475684 + 13.6656109621 + 39.9973933726 = $59.3 Mil.
Non Operating Income was -0.811899697028 + -2.21459942936 + 6.13418220599 + 9.15186862598 = $12.3 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0.0 Mil.
Accounts Receivable was $19.1 Mil.
Revenue was 255.836356049 + 223.261623198 + 248.797003622 + 266.831699346 = $994.7 Mil.
Gross Profit was 51.3568516676 + 20.7255791349 + 38.4142245637 + 54.9866013072 = $165.5 Mil.
Total Current Assets was $310.8 Mil.
Total Assets was $1,615.8 Mil.
Property, Plant and Equipment(Net PPE) was $658.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General & Admin. Expense(SGA) was $72.9 Mil.
Total Current Liabilities was $317.8 Mil.
Long-Term Debt was $115.5 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)
=(18.1273770386 / 1009.86401087) / (19.1392482265 / 994.726682215)
=0.01795031 / 0.01924071
=

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)
=(11.8510563267 / 994.726682215) / (39.6852639722 / 1009.86401087)
=0.16636053 / 0.14745605
=

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 - (224.73828402 + 626.210436408) / 1497.20830916) / (1 - (310.758835425 + 658.918884217) / 1615.7880461)
=0.43164307 / 0.39987319
=

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
=1009.86401087 / 994.726682215
=

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))
=(0 / (0 + 658.918884217)) / (0 / (0 + 626.210436408))
=0 / 0
=

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)
=(67.4768440412 / 1009.86401087) / (72.9401696388 / 994.726682215)
=0.06681775 / 0.07332685
=

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)
=((50.459775672 + 415.692161413) / 1497.20830916) / ((115.539113408 + 317.764420762) / 1615.7880461)
=0.31134742 / 0.26816855
=

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
=(59.2538227314 - 12.2595517056 - 0) / 1497.20830916
=0.0314

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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