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China Feihe (China Feihe) Beneish M-Score : -2.62 (As of Apr. 30, 2024)


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What is China Feihe 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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CFEIY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9   Med: -2.37   Max: -2.12
Current: -2.62

During the past 8 years, the highest Beneish M-Score of China Feihe was -2.12. The lowest was -2.90. And the median was -2.37.


China Feihe Beneish M-Score Historical Data

The historical data trend for China Feihe'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.

China Feihe Beneish M-Score Chart

China Feihe Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial -2.90 -2.14 -2.12 -2.59 -2.62

China Feihe Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -2.12 - -2.59 - -2.62

Competitive Comparison of China Feihe's Beneish M-Score

For the Packaged Foods subindustry, China Feihe'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.


China Feihe's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, China Feihe's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Feihe's Beneish M-Score falls into.



China Feihe 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 China Feihe 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 * 1.0225+0.528 * 1.0097+0.404 * 1.1684+0.892 * 0.8949+0.115 * 0.8046
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1438+4.679 * -0.020869-0.327 * 0.9788
=-2.62

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $109 Mil.
Revenue was $2,736 Mil.
Gross Profit was $1,774 Mil.
Total Current Assets was $3,159 Mil.
Total Assets was $5,069 Mil.
Property, Plant and Equipment(Net PPE) was $1,401 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General, & Admin. Expense(SGA) was $1,186 Mil.
Total Current Liabilities was $1,034 Mil.
Long-Term Debt & Capital Lease Obligation was $146 Mil.
Net Income was $475 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $581 Mil.
Total Receivables was $119 Mil.
Revenue was $3,057 Mil.
Gross Profit was $2,001 Mil.
Total Current Assets was $3,189 Mil.
Total Assets was $5,094 Mil.
Property, Plant and Equipment(Net PPE) was $1,467 Mil.
Depreciation, Depletion and Amortization(DDA) was $71 Mil.
Selling, General, & Admin. Expense(SGA) was $1,159 Mil.
Total Current Liabilities was $1,070 Mil.
Long-Term Debt & Capital Lease Obligation was $142 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)
=(108.625 / 2735.526) / (118.717 / 3056.777)
=0.039709 / 0.038837
=1.0225

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)
=(2001.033 / 3056.777) / (1773.529 / 2735.526)
=0.654622 / 0.648332
=1.0097

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 - (3158.773 + 1400.522) / 5069.141) / (1 - (3188.56 + 1467.204) / 5094.277)
=0.100578 / 0.08608
=1.1684

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
=2735.526 / 3056.777
=0.8949

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))
=(70.922 / (70.922 + 1467.204)) / (85.142 / (85.142 + 1400.522))
=0.046109 / 0.057309
=0.8046

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)
=(1186.398 / 2735.526) / (1159.026 / 3056.777)
=0.4337 / 0.379166
=1.1438

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)
=((146.228 + 1033.897) / 5069.141) / ((141.697 + 1069.996) / 5094.277)
=0.232806 / 0.237854
=0.9788

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
=(474.778 - 0 - 580.564) / 5069.141
=-0.020869

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.

China Feihe has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.


China Feihe Beneish M-Score Related Terms

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China Feihe (China Feihe) Business Description

Traded in Other Exchanges
Address
10 Jiuxianqiao Road, Block C, 16th Floor, Star City International Building, Chaoyang District, Beijing, CHN, 100016
Feihe is the number one infant milk formula company in China, with a premium market positioning among domestic and foreign competing brands. The company utilizes the flagship Astrobaby lineup to promote its "more suitable for Chinese babies" proposition. It has a nationwide distributor network covering maternity stores, supermarkets and traditional retailers, as well as a direct sales network in e-commerce.

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