Great Novel Therapeutics Biotech & Medicals (ROCO:7427) Beneish M-Score : 4.73 (As of Jun. 19, 2024)

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What is Great Novel Therapeutics Biotech & Medicals 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.

Warning Sign:

Beneish M-Score 4.73 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Great Novel Therapeutics Biotech & Medicals's Beneish M-Score or its related term are showing as below:

ROCO:7427' s Beneish M-Score Range Over the Past 10 Years
Min: -2 Med: 1.37 Max: 4.73
Current: 4.73

During the past 6 years, the highest Beneish M-Score of Great Novel Therapeutics Biotech & Medicals was 4.73. The lowest was -2.00. And the median was 1.37.

Great Novel Therapeutics Biotech & Medicals Beneish M-Score Historical Data

The historical data trend for Great Novel Therapeutics Biotech & Medicals'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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Great Novel Therapeutics Biotech & Medicals Beneish M-Score Chart

Great Novel Therapeutics Biotech & Medicals Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.00

4.73

Great Novel Therapeutics Biotech & Medicals Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial					-	-	-2.00	-	4.73

Competitive Comparison of Great Novel Therapeutics Biotech & Medicals's Beneish M-Score

For the Biotechnology subindustry, Great Novel Therapeutics Biotech & Medicals'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.

Great Novel Therapeutics Biotech & Medicals's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Great Novel Therapeutics Biotech & Medicals's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Great Novel Therapeutics Biotech & Medicals's Beneish M-Score falls into.

Great Novel Therapeutics Biotech & Medicals 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 Great Novel Therapeutics Biotech & Medicals 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 * 0.6097

0.528 * 1.5937

0.404 * 0.6836

0.892 * 8.9815

0.115 * 3.2437

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.1006

4.679 * -0.012708

0.327 * 1.2869

4.73

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was NT$0.56 Mil.
Revenue was NT$4.85 Mil.
Gross Profit was NT$2.62 Mil.
Total Current Assets was NT$485.45 Mil.
Total Assets was NT$644.85 Mil.
Property, Plant and Equipment(Net PPE) was NT$16.01 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$6.53 Mil.
Selling, General, & Admin. Expense(SGA) was NT$17.50 Mil.
Total Current Liabilities was NT$15.93 Mil.
Long-Term Debt & Capital Lease Obligation was NT$10.88 Mil.
Net Income was NT$-61.54 Mil.
Gross Profit was NT$0.00 Mil.
Cash Flow from Operations was NT$-53.35 Mil.

Total Receivables was NT$0.10 Mil.
Revenue was NT$0.54 Mil.
Gross Profit was NT$0.46 Mil.
Total Current Assets was NT$251.45 Mil.
Total Assets was NT$372.85 Mil.
Property, Plant and Equipment(Net PPE) was NT$0.12 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1.82 Mil.
Selling, General, & Admin. Expense(SGA) was NT$19.37 Mil.
Total Current Liabilities was NT$12.05 Mil.
Long-Term Debt & Capital Lease Obligation was NT$0.00 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)
	=	(0.564 / 4.85)	/	(0.103 / 0.54)
	=	0.116289	/	0.190741
	=	0.6097

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)
	=	(0.464 / 0.54)	/	(2.615 / 4.85)
	=	0.859259	/	0.539175
	=	1.5937

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 - (485.454 + 16.01) / 644.849)	/	(1 - (251.454 + 0.116) / 372.847)
	=	0.222354	/	0.325273
	=	0.6836

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
	=	4.85	/	0.54
	=	8.9815

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))
	=	(1.822 / (1.822 + 0.116))	/	(6.534 / (6.534 + 16.01))
	=	0.940144	/	0.289833
	=	3.2437

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)
	=	(17.5 / 4.85)	/	(19.369 / 0.54)
	=	3.608247	/	35.868519
	=	0.1006

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)
	=	((10.881 + 15.932) / 644.849)	/	((0 + 12.047) / 372.847)
	=	0.04158	/	0.032311
	=	1.2869

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
	=	(-61.54 - 0	-	-53.345)	/	644.849
	=	-0.012708

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.

Great Novel Therapeutics Biotech & Medicals has a M-score of 4.73 signals that the company is likely to be a manipulator.

Great Novel Therapeutics Biotech & Medicals Beneish M-Score Related Terms

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Great Novel Therapeutics Biotech & Medicals (ROCO:7427) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Great Novel Therapeutics Biotech & Medicals (ROCO:7427) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.3, Park Street, Room WR-06, 17th Floor, Nangang District, Taipei, TWN, 11503

Website

http://www.gntbm.com.tw

Great Novel Therapeutics Biotech & Medicals focuses on drug development to treat advanced cancer. The new drugs ranging from epigenetic modulators, a combination of tumor microenvironment-regulating agents, epigenetic immuno-modulators, to the protein degradation drugs targeting HDACs 1, 2, and 3, are in a developing pipeline. These drugs focus on the field of epigenetics, for the demand of clinical unmet needs in advanced and refractory cancers.

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