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Delton Technology (Guangzhou) (SZSE:001389) Beneish M-Score : -3.40 (As of Oct. 31, 2024)


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What is Delton Technology (Guangzhou) 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 -3.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Delton Technology (Guangzhou)'s Beneish M-Score or its related term are showing as below:

SZSE:001389' s Beneish M-Score Range Over the Past 10 Years
Min: -7.92   Med: -3.4   Max: 1.34
Current: -3.4

During the past 7 years, the highest Beneish M-Score of Delton Technology (Guangzhou) was 1.34. The lowest was -7.92. And the median was -3.40.


Delton Technology (Guangzhou) Beneish M-Score Historical Data

The historical data trend for Delton Technology (Guangzhou)'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.

Delton Technology (Guangzhou) Beneish M-Score Chart

Delton Technology (Guangzhou) Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - - - - 1.34

Delton Technology (Guangzhou) Quarterly Data
Dec17 Dec18 Dec19 Jun20 Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.92 - 1.34 - -3.40

Competitive Comparison of Delton Technology (Guangzhou)'s Beneish M-Score

For the Electronic Components subindustry, Delton Technology (Guangzhou)'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.


Delton Technology (Guangzhou)'s Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Delton Technology (Guangzhou)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Delton Technology (Guangzhou)'s Beneish M-Score falls into.



Delton Technology (Guangzhou) 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 Delton Technology (Guangzhou) 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 * 0.9356+0.528 * -1.0376+0.404 * 0.7742+0.892 * 1.3629+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9454+4.679 * -0.017015-0.327 * 0.8271
=-3.40

* 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.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was ¥1,046 Mil.
Revenue was 921.226 + 784.358 + 717.123 + 788.935 = ¥3,212 Mil.
Gross Profit was 315.441 + 270.219 + -1069.305 + 788.935 = ¥305 Mil.
Total Current Assets was ¥2,545 Mil.
Total Assets was ¥4,719 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,940 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥62 Mil.
Total Current Liabilities was ¥1,520 Mil.
Long-Term Debt & Capital Lease Obligation was ¥267 Mil.
Net Income was 174.301 + 145.086 + 124.852 + 132.049 = ¥576 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 74.549 + 196.285 + 198.578 + 187.171 = ¥657 Mil.
Total Receivables was ¥820 Mil.
Revenue was 647.679 + 524.534 + 505.924 + 678.382 = ¥2,357 Mil.
Gross Profit was 210.18 + 156.8 + -1277.795 + 678.382 = ¥-232 Mil.
Total Current Assets was ¥1,418 Mil.
Total Assets was ¥3,306 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,676 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥48 Mil.
Total Current Liabilities was ¥1,369 Mil.
Long-Term Debt & Capital Lease Obligation was ¥145 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)
=(1045.566 / 3211.642) / (820.021 / 2356.519)
=0.325555 / 0.34798
=0.9356

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)
=(-232.433 / 2356.519) / (305.29 / 3211.642)
=-0.098634 / 0.095057
=-1.0376

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 - (2545.183 + 1939.895) / 4718.996) / (1 - (1418.154 + 1675.722) / 3305.528)
=0.049569 / 0.06403
=0.7742

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
=3211.642 / 2356.519
=1.3629

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 + 1675.722)) / (0 / (0 + 1939.895))
=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)
=(61.984 / 3211.642) / (48.107 / 2356.519)
=0.0193 / 0.020414
=0.9454

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)
=((267.431 + 1520.463) / 4718.996) / ((145.065 + 1369.065) / 3305.528)
=0.378872 / 0.45806
=0.8271

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
=(576.288 - 0 - 656.583) / 4718.996
=-0.017015

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.

Delton Technology (Guangzhou) has a M-score of -3.40 suggests that the company is unlikely to be a manipulator.


Delton Technology (Guangzhou) Beneish M-Score Related Terms

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Delton Technology (Guangzhou) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
No. 22 Baoying South Road, Guangzhou Free Trade Zone, Guangdong Province, Guangzhou, CHN, 510730
Delton Technology (Guangzhou) Inc is engaged in research & development, production and sales of printed circuit boards. Its products are mainly used in data center, cloud computing, industrial Internet, artificial intelligence, 5G communication, automotive electronics, security and printing and other terminal fields.

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