Shanghai Electric Group Co (Shanghai Electric Group Co) Beneish M-Score

: -2.75 (As of Today)

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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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Shanghai Electric Group Co's Beneish M-Score or its related term are showing as below:

SIELY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.8 Med: -2.49 Max: -1.38
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Shanghai Electric Group Co was -1.38. The lowest was -2.80. And the median was -2.49.

Shanghai Electric Group Co Beneish M-Score Historical Data

The historical data trend for Shanghai Electric Group Co'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.

* Premium members only.

Shanghai Electric Group Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.19

-2.25

-2.61

-2.80

-2.75

Shanghai Electric Group Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.80	-2.84	-2.90	-2.94	-2.75

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Shanghai Electric Group Co'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.

Shanghai Electric Group Co Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, Shanghai Electric Group Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shanghai Electric Group Co's Beneish M-Score falls into.

Shanghai Electric Group Co 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 Shanghai Electric Group Co 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 * 0.9745

0.528 * 0.8621

0.404 * 1.1141

0.892 * 0.9278

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0942

4.679 * -0.025248

0.327 * 1.0903

-2.76

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $13,013 Mil.
Revenue was 5101.5 + 3465.847 + 4438.816 + 3089.554 = $16,096 Mil.
Gross Profit was 1017.927 + 660.214 + 804.333 + 543.616 = $3,026 Mil.
Total Current Assets was $26,866 Mil.
Total Assets was $39,672 Mil.
Property, Plant and Equipment(Net PPE) was $3,329 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $936 Mil.
Total Current Liabilities was $23,490 Mil.
Long-Term Debt & Capital Lease Obligation was $4,593 Mil.
Net Income was -75.084 + 31.64 + 31.21 + 53.237 = $41 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1674.486 + 23.31 + 684.413 + -1339.585 = $1,043 Mil.

Total Receivables was $14,393 Mil.
Revenue was 5675.186 + 3955.358 + 3780.56 + 3937.394 = $17,348 Mil.
Gross Profit was 838.451 + 663.077 + 644.002 + 666.184 = $2,812 Mil.
Total Current Assets was $28,853 Mil.
Total Assets was $41,313 Mil.
Property, Plant and Equipment(Net PPE) was $3,602 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $922 Mil.
Total Current Liabilities was $23,456 Mil.
Long-Term Debt & Capital Lease Obligation was $3,367 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)
	=	(13013.146 / 16095.717)	/	(14393.323 / 17348.498)
	=	0.808485	/	0.829658
	=	0.9745

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)
	=	(2811.714 / 17348.498)	/	(3026.09 / 16095.717)
	=	0.162072	/	0.188006
	=	0.8621

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 - (26865.735 + 3329.272) / 39672.077)	/	(1 - (28852.881 + 3602.052) / 41312.858)
	=	0.238885	/	0.214411
	=	1.1141

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
	=	16095.717	/	17348.498
	=	0.9278

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 / (0 + 3602.052))	/	(0 / (0 + 3329.272))
	=	0	/	0
	=	1

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)
	=	(936.014 / 16095.717)	/	(922.007 / 17348.498)
	=	0.058153	/	0.053146
	=	1.0942

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)
	=	((4592.892 + 23490.18) / 39672.077)	/	((3367.014 + 23455.605) / 41312.858)
	=	0.70788	/	0.649256
	=	1.0903

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
	=	(41.003 - 0	-	1042.624)	/	39672.077
	=	-0.025248

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.

Shanghai Electric Group Co has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

Shanghai Electric Group Co Beneish M-Score Related Terms

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Shanghai Electric Group Co (Shanghai Electric Group Co) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

SIELF:USA 02727:Hong Kong USR:Germany 601727:China

Address

No. 110 Sichuan Middle Road, Huangpu District, Shanghai, CHN, 200002

Website

https://www.shanghai-electric.com

Shanghai Electric Group Co Ltd is an integrated equipment manufacturing group specializing in industrial equipment. Its products include thermal generator sets, nuclear power units, wind power equipment, power T&D equipment, environmental protection equipment, automation equipment, elevators, rail transit, and Industrial Internet. The operating segments are energy equipment, industrial equipment, and integrated services segments, with maximum revenue from the energy equipment segment.