HEGIF (Hengan International Group Co) Beneish M-Score : -2.52 (As of Dec. 15, 2024)

View and export this data going back to . Start your Free Trial

What is Hengan International Group 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hengan International Group Co's Beneish M-Score or its related term are showing as below:

HEGIF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73 Med: -2.42 Max: -2.14
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Hengan International Group Co was -2.14. The lowest was -2.73. And the median was -2.42.

Hengan International Group Co Beneish M-Score Historical Data

The historical data trend for Hengan International Group 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.

Hengan International Group Co Beneish M-Score Chart

Hengan International Group Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.26

-2.48

-2.59

-2.73

-2.52

Hengan International Group 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															-	-2.73	-	-2.52	-

Competitive Comparison of Hengan International Group Co's Beneish M-Score

For the Household & Personal Products subindustry, Hengan International Group 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.

Hengan International Group Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hengan International Group Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hengan International Group Co's Beneish M-Score falls into.

Hengan International Group 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 Hengan International Group Co 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 * 1.1206

0.528 * 1.0088

0.404 * 0.7749

0.892 * 1.0261

0.115 * 1.0572

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9866

4.679 * -0.026727

0.327 * 0.9114

-2.52

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $596 Mil.
Revenue was $3,329 Mil.
Gross Profit was $1,122 Mil.
Total Current Assets was $3,755 Mil.
Total Assets was $5,632 Mil.
Property, Plant and Equipment(Net PPE) was $1,293 Mil.
Depreciation, Depletion and Amortization(DDA) was $126 Mil.
Selling, General, & Admin. Expense(SGA) was $710 Mil.
Total Current Liabilities was $2,669 Mil.
Long-Term Debt & Capital Lease Obligation was $48 Mil.
Net Income was $392 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $543 Mil.

Total Receivables was $518 Mil.
Revenue was $3,244 Mil.
Gross Profit was $1,103 Mil.
Total Current Assets was $4,032 Mil.
Total Assets was $6,073 Mil.
Property, Plant and Equipment(Net PPE) was $1,228 Mil.
Depreciation, Depletion and Amortization(DDA) was $127 Mil.
Selling, General, & Admin. Expense(SGA) was $701 Mil.
Total Current Liabilities was $2,925 Mil.
Long-Term Debt & Capital Lease Obligation was $289 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)
	=	(596.169 / 3328.749)	/	(518.469 / 3243.955)
	=	0.179097	/	0.159826
	=	1.1206

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)
	=	(1102.959 / 3243.955)	/	(1121.914 / 3328.749)
	=	0.340004	/	0.337038
	=	1.0088

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 - (3754.791 + 1293.499) / 5632.321)	/	(1 - (4031.803 + 1228.285) / 6072.729)
	=	0.103693	/	0.133818
	=	0.7749

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
	=	3328.749	/	3243.955
	=	1.0261

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))
	=	(127.228 / (127.228 + 1228.285))	/	(126.022 / (126.022 + 1293.499))
	=	0.09386	/	0.088778
	=	1.0572

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)
	=	(709.908 / 3328.749)	/	(701.237 / 3243.955)
	=	0.213266	/	0.216167
	=	0.9866

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)
	=	((48.091 + 2669.433) / 5632.321)	/	((289.452 + 2925.27) / 6072.729)
	=	0.482487	/	0.52937
	=	0.9114

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
	=	(392.221 - 0	-	542.754)	/	5632.321
	=	-0.026727

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.

Hengan International Group Co has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.

Hengan International Group Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Hengan International Group Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Hengan International Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Hengan International Group Co Ltd (OTCPK:HEGIF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HEGIY:USA 01044:Hong Kong HGNC:Germany

Address

Hengan Industrial City, Anhai Town, Fujian Province, Jinjiang, CHN, 362261

Website

https://www.hengan.com

Hengan International is a leading personal care product manufacturer in China. Its business comprises tissue paper products (close to 60% of sales), sanitary napkins (26% of sales), disposable diapers (5% of sales), and others.