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CRHKF (China Resources Beer (Holdings) Co) Beneish M-Score : -2.71 (As of Dec. 14, 2024)


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What is China Resources Beer (Holdings) Co 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China Resources Beer (Holdings) Co's Beneish M-Score or its related term are showing as below:

CRHKF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31   Med: -2.88   Max: 4.04
Current: -2.71

During the past 13 years, the highest Beneish M-Score of China Resources Beer (Holdings) Co was 4.04. The lowest was -4.31. And the median was -2.88.


China Resources Beer (Holdings) Co Beneish M-Score Historical Data

The historical data trend for China Resources Beer (Holdings) Co'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 Resources Beer (Holdings) Co Beneish M-Score Chart

China Resources Beer (Holdings) Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.88 0.16 -2.15 -2.96 -2.71

China Resources Beer (Holdings) Co Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -2.96 - -2.71 -

Competitive Comparison of China Resources Beer (Holdings) Co's Beneish M-Score

For the Beverages - Brewers subindustry, China Resources Beer (Holdings) Co'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 Resources Beer (Holdings) Co's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, China Resources Beer (Holdings) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Resources Beer (Holdings) Co's Beneish M-Score falls into.



China Resources Beer (Holdings) Co 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 Resources Beer (Holdings) Co 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 * 0.4483+0.528 * 0.9298+0.404 * 1.4561+0.892 * 1.078+0.115 * 0.7969
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0278+4.679 * 0.014037-0.327 * 0.9437
=-2.71

* 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 $138 Mil.
Revenue was $5,453 Mil.
Gross Profit was $2,255 Mil.
Total Current Assets was $2,401 Mil.
Total Assets was $10,017 Mil.
Property, Plant and Equipment(Net PPE) was $2,755 Mil.
Depreciation, Depletion and Amortization(DDA) was $319 Mil.
Selling, General, & Admin. Expense(SGA) was $1,600 Mil.
Total Current Liabilities was $3,412 Mil.
Long-Term Debt & Capital Lease Obligation was $598 Mil.
Net Income was $722 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $581 Mil.
Total Receivables was $285 Mil.
Revenue was $5,058 Mil.
Gross Profit was $1,945 Mil.
Total Current Assets was $2,995 Mil.
Total Assets was $8,221 Mil.
Property, Plant and Equipment(Net PPE) was $2,486 Mil.
Depreciation, Depletion and Amortization(DDA) was $224 Mil.
Selling, General, & Admin. Expense(SGA) was $1,444 Mil.
Total Current Liabilities was $3,395 Mil.
Long-Term Debt & Capital Lease Obligation was $93 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)
=(137.811 / 5452.508) / (285.153 / 5058.02)
=0.025275 / 0.056376
=0.4483

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)
=(1945.15 / 5058.02) / (2255.259 / 5452.508)
=0.384567 / 0.413619
=0.9298

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 - (2400.633 + 2755.245) / 10017.086) / (1 - (2994.678 + 2486.338) / 8220.807)
=0.485292 / 0.333275
=1.4561

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
=5452.508 / 5058.02
=1.078

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))
=(224.049 / (224.049 + 2486.338)) / (318.899 / (318.899 + 2755.245))
=0.082663 / 0.103736
=0.7969

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)
=(1600.375 / 5452.508) / (1444.411 / 5058.02)
=0.293512 / 0.285568
=1.0278

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)
=((598.022 + 3412.229) / 10017.086) / ((92.804 + 3394.724) / 8220.807)
=0.400341 / 0.424232
=0.9437

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
=(721.688 - 0 - 581.076) / 10017.086
=0.014037

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 Resources Beer (Holdings) Co has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.


China Resources Beer (Holdings) Co Beneish M-Score Related Terms

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China Resources Beer (Holdings) Co Business Description

Traded in Other Exchanges
Address
No. 26 Harbour Road, Room 2301 and 2310, 23rd Floor, China Resources Building, Wanchai, Hong Kong, HKG
China Resources Beer, or CR Beer, was originally a conglomerate enterprise with operations across retail, beer, food and beverage sectors. In September 2015, the company disposed of all its non-beer businesses and became a pure beer producer. Through a series of mergers and acquisitions, the company retains its leadership position in China's beer industry. Amid the premiumization trend in the domestic beer market, CR beer acquired Heineken China in 2019, which allows CR Beer access to a premium international brand and also leverages its sophisticated distribution network to grow Heineken's sales and market share. CR Beer is now China's largest brewer, with a volume share of about 26%, versus 15% of Tsingtao and 19% of Budweiser APAC, based on Euromonitor data.

China Resources Beer (Holdings) Co Headlines