Asia Carbon Industries (Asia Carbon Industries) Beneish M-Score : 0.00 (As of May. 24, 2024)

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What is Asia Carbon Industries 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.

The historical rank and industry rank for Asia Carbon Industries's Beneish M-Score or its related term are showing as below:

During the past 4 years, the highest Beneish M-Score of Asia Carbon Industries was 0.00. The lowest was 0.00. And the median was 0.00.

Asia Carbon Industries Beneish M-Score Historical Data

The historical data trend for Asia Carbon Industries'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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Asia Carbon Industries Beneish M-Score Chart

Asia Carbon Industries Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Beneish M-Score

-2.93

Asia Carbon Industries Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Beneish M-Score	Get a 7-Day Free Trial											-2.90	-2.24	-2.93	-3.63	-3.66

Competitive Comparison of Asia Carbon Industries's Beneish M-Score

For the Specialty Chemicals subindustry, Asia Carbon Industries'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.

Asia Carbon Industries's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Asia Carbon Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Asia Carbon Industries's Beneish M-Score falls into.

Asia Carbon Industries 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 Asia Carbon Industries 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 * 0.7044

0.528 * 0.9755

0.404 * 0.9354

0.892 * 0.6592

0.115 * 1.1055

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.169

4.679 * -0.113135

0.327 * 0.527

-3.66

This Year (Jun13) TTM:

Last Year (Jun12) TTM:

Total Receivables was $2.48 Mil.
Revenue was 5.487 + 5.964 + 7.462 + 12.699 = $31.61 Mil.
Gross Profit was 1.3 + 1.389 + 2.068 + 2.7 = $7.46 Mil.
Total Current Assets was $9.51 Mil.
Total Assets was $40.62 Mil.
Property, Plant and Equipment(Net PPE) was $30.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.86 Mil.
Selling, General, & Admin. Expense(SGA) was $2.05 Mil.
Total Current Liabilities was $3.19 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 0.623 + 0.39 + 1.077 + 1.698 = $3.79 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.062 + 2.026 + 3.337 + 1.959 = $8.38 Mil.

Total Receivables was $5.34 Mil.
Revenue was 13.195 + 12.582 + 11.182 + 10.997 = $47.96 Mil.
Gross Profit was 2.937 + 2.926 + 2.539 + 2.633 = $11.04 Mil.
Total Current Assets was $13.77 Mil.
Total Assets was $37.64 Mil.
Property, Plant and Equipment(Net PPE) was $23.66 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.58 Mil.
Selling, General, & Admin. Expense(SGA) was $1.43 Mil.
Total Current Liabilities was $5.60 Mil.
Long-Term Debt & Capital Lease Obligation was $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)
	=	(2.479 / 31.612)	/	(5.339 / 47.956)
	=	0.07842	/	0.111331
	=	0.7044

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)
	=	(11.035 / 47.956)	/	(7.457 / 31.612)
	=	0.230107	/	0.235891
	=	0.9755

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 - (9.514 + 30.896) / 40.624)	/	(1 - (13.771 + 23.659) / 37.642)
	=	0.005268	/	0.005632
	=	0.9354

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
	=	31.612	/	47.956
	=	0.6592

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))
	=	(1.583 / (1.583 + 23.659))	/	(1.858 / (1.858 + 30.896))
	=	0.062713	/	0.056726
	=	1.1055

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)
	=	(2.046 / 31.612)	/	(1.431 / 47.956)
	=	0.064722	/	0.02984
	=	2.169

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)
	=	((0 + 3.187) / 40.624)	/	((0 + 5.604) / 37.642)
	=	0.078451	/	0.148876
	=	0.527

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
	=	(3.788 - 0	-	8.384)	/	40.624
	=	-0.113135

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.

Asia Carbon Industries has a M-score of -3.66 suggests that the company is unlikely to be a manipulator.

Asia Carbon Industries Beneish M-Score Related Terms

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Asia Carbon Industries (Asia Carbon Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Asia Carbon Industries Inc (OTCPK:ACRB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Xi Gu Nan Street, Qing Xu County Taiyuan, Shanxi Province, Taiyuan City, CHN, 030407

Website

http://www.asiacarbonindustries.com

Asia Carbon Industries Inc is a United States based company, through its subsidiary, manufactures carbon black products under the Great Double Star brand and other by-products. The company manufactures one soft and two hard carbon black products, called N660, N330, and N220, respectively.

Asia Carbon Industries (Asia Carbon Industries) Headlines

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