Tai Cheung Holdings (Tai Cheung Holdings) Beneish M-Score : -3.03 (As of Apr. 26, 2024)

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What is Tai Cheung Holdings 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 -3.03 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tai Cheung Holdings's Beneish M-Score or its related term are showing as below:

TAICY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.21 Med: -0.9 Max: 11.7
Current: -3.03

During the past 13 years, the highest Beneish M-Score of Tai Cheung Holdings was 11.70. The lowest was -4.21. And the median was -0.90.

Tai Cheung Holdings Beneish M-Score Historical Data

The historical data trend for Tai Cheung Holdings'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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Tai Cheung Holdings Beneish M-Score Chart

Tai Cheung Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-4.21

11.70

-2.29

-0.19

-3.03

Tai Cheung Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-0.19	-	-3.03	-

Competitive Comparison of Tai Cheung Holdings's Beneish M-Score

For the Real Estate - Development subindustry, Tai Cheung Holdings'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.

Tai Cheung Holdings's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Tai Cheung Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tai Cheung Holdings's Beneish M-Score falls into.

Tai Cheung Holdings 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 Tai Cheung Holdings 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

0.528 * 0.1751

0.404 * 1.5297

0.892 * 0.501

0.115 * 0.7759

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.9657

4.679 * 0.019459

0.327 * 0.9059

-3.22

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was $0.00 Mil.
Revenue was $8.45 Mil.
Gross Profit was $1.10 Mil.
Total Current Assets was $817.31 Mil.
Total Assets was $863.01 Mil.
Property, Plant and Equipment(Net PPE) was $4.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.53 Mil.
Selling, General, & Admin. Expense(SGA) was $7.36 Mil.
Total Current Liabilities was $30.94 Mil.
Long-Term Debt & Capital Lease Obligation was $2.06 Mil.
Net Income was $-2.55 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $-19.34 Mil.

Total Receivables was $0.00 Mil.
Revenue was $16.86 Mil.
Gross Profit was $0.38 Mil.
Total Current Assets was $856.56 Mil.
Total Assets was $891.61 Mil.
Property, Plant and Equipment(Net PPE) was $7.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.80 Mil.
Selling, General, & Admin. Expense(SGA) was $7.48 Mil.
Total Current Liabilities was $21.53 Mil.
Long-Term Debt & Capital Lease Obligation was $16.11 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)
	=	(0 / 8.447)	/	(0 / 16.861)
	=	0	/	0
	=	1

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)
	=	(0.383 / 16.861)	/	(1.096 / 8.447)
	=	0.022715	/	0.12975
	=	0.1751

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 - (817.307 + 4.345) / 863.009)	/	(1 - (856.56 + 7.12) / 891.612)
	=	0.047922	/	0.031328
	=	1.5297

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
	=	8.447	/	16.861
	=	0.501

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))
	=	(1.802 / (1.802 + 7.12))	/	(1.529 / (1.529 + 4.345))
	=	0.201973	/	0.2603
	=	0.7759

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)
	=	(7.364 / 8.447)	/	(7.478 / 16.861)
	=	0.871789	/	0.443509
	=	1.9657

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)
	=	((2.064 + 30.935) / 863.009)	/	((16.107 + 21.527) / 891.612)
	=	0.038237	/	0.042209
	=	0.9059

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
	=	(-2.548 - 0	-	-19.341)	/	863.009
	=	0.019459

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.

Tai Cheung Holdings has a M-score of -3.22 suggests that the company is unlikely to be a manipulator.

Tai Cheung Holdings Beneish M-Score Related Terms

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Tai Cheung Holdings (Tai Cheung Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Tai Cheung Holdings Ltd (OTCPK:TAICY) » Definitions » Beneish M-Score

Traded in Other Exchanges

00088:Hong Kong

Address

3A Chater Road, Central, 20th Floor, The Hong Kong Club Building, Hong Kong, HKG

Website

http://www.taicheung.com

Tai Cheung Holdings Ltd is a Hong Kong-based company engaged in property investment and development, investment holding, and property management. The company's property portfolio includes office towers as well as industrial and residential buildings. In addition, the group has a hotel operation arm through its interest in Sheraton Hong Kong Hotel & Towers, a 5-star hotel located in Tsim Sha Tsui, Kowloon. The company divides its business activities into property development and leasing, property management, hotel operation, and investment holding. Tai Cheung generates the majority of its income from property sales.

Tai Cheung Holdings (Tai Cheung Holdings) Headlines

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