China Longyuan Power Group (China Longyuan Power Group) Beneish M-Score : -2.54 (As of Apr. 30, 2024)

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What is China Longyuan Power Group 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CLPXF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38 Med: -2.54 Max: -2.05
Current: -2.54

During the past 13 years, the highest Beneish M-Score of China Longyuan Power Group was -2.05. The lowest was -3.38. And the median was -2.54.

China Longyuan Power Group Beneish M-Score Historical Data

The historical data trend for China Longyuan Power Group'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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China Longyuan Power Group Beneish M-Score Chart

China Longyuan Power Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.80

-2.39

-2.35

-3.03

-2.52

China Longyuan Power Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-3.03	-3.38	-2.50	-2.52	-2.54

Competitive Comparison of China Longyuan Power Group's Beneish M-Score

For the Utilities - Renewable subindustry, China Longyuan Power Group'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 Longyuan Power Group's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, China Longyuan Power Group's Beneish M-Score distribution charts can be found below:

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

China Longyuan Power Group 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 Longyuan Power Group 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 * 1.3654

0.528 * 0.932

0.404 * 1.0037

0.892 * 0.9159

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.093

4.679 * -0.030518

0.327 * 0.9994

-2.58

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $5,576 Mil.
Revenue was 1371.505 + 1335.741 + 1130.848 + 1394.29 = $5,232 Mil.
Gross Profit was 547.064 + 415.47 + 342.655 + 596.204 = $1,901 Mil.
Total Current Assets was $6,660 Mil.
Total Assets was $32,921 Mil.
Property, Plant and Equipment(Net PPE) was $23,587 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $18 Mil.
Total Current Liabilities was $10,035 Mil.
Long-Term Debt & Capital Lease Obligation was $10,727 Mil.
Net Income was 332.324 + 19.793 + 157.514 + 366.259 = $876 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 474.613 + 1109.838 + -279.201 + 575.316 = $1,881 Mil.

Total Receivables was $4,459 Mil.
Revenue was 1431.826 + 1383.764 + 1217.098 + 1680.322 = $5,713 Mil.
Gross Profit was 573.033 + 430.046 + 372.085 + 559.633 = $1,935 Mil.
Total Current Assets was $7,842 Mil.
Total Assets was $33,035 Mil.
Property, Plant and Equipment(Net PPE) was $22,520 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $10 Mil.
Total Current Liabilities was $9,732 Mil.
Long-Term Debt & Capital Lease Obligation was $11,114 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)
	=	(5575.771 / 5232.384)	/	(4458.811 / 5713.01)
	=	1.065627	/	0.780466
	=	1.3654

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)
	=	(1934.797 / 5713.01)	/	(1901.393 / 5232.384)
	=	0.338665	/	0.363389
	=	0.932

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 - (6659.812 + 23586.886) / 32921.064)	/	(1 - (7841.517 + 22519.971) / 33035.151)
	=	0.081236	/	0.080934
	=	1.0037

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
	=	5232.384	/	5713.01
	=	0.9159

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 + 22519.971))	/	(0 / (0 + 23586.886))
	=	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)
	=	(18.484 / 5232.384)	/	(9.641 / 5713.01)
	=	0.003533	/	0.001688
	=	2.093

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)
	=	((10726.829 + 10035.054) / 32921.064)	/	((11114.012 + 9731.669) / 33035.151)
	=	0.630657	/	0.631015
	=	0.9994

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
	=	(875.89 - 0	-	1880.566)	/	32921.064
	=	-0.030518

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 Longyuan Power Group has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

China Longyuan Power Group Beneish M-Score Related Terms

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China Longyuan Power Group (China Longyuan Power Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » China Longyuan Power Group Corp Ltd (OTCPK:CLPXF) » Definitions » Beneish M-Score

Traded in Other Exchanges

CLPXY:USA 00916:Hong Kong 6WX:Germany 001289:China

Address

6 Fuchengmen North Street, Room 2006, 20th Floor, Block C, Xicheng District, Beijing, CHN

Website

http://www.clypg.com.cn

Longyuan is China's largest wind farm operator, with consolidated installed wind capacity of 26.2 gigawatts as of end-2022, representing about 7% of nationwide wind capacity. It has more than 400 wind farms spread across China, and has also expanded into other countries such as Canada and South Africa. Longyuan owns two coal-fired power plants in Jiangsu and operates other renewable assets such as solar, geothermal, and tidal energy on a limited scale. The consolidated installed capacity mix is about 84% wind, 6% thermal, and the remainder in other renewables. China Energy Investment, which was created through the merger of China Guodian Corporation and China Shenhua Group, is the major shareholder with a controlling stake of about 58.6%.