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First Tractor Co (HKSE:00038) Beneish M-Score : -2.37 (As of Dec. 13, 2024)


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What is First Tractor 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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00038' s Beneish M-Score Range Over the Past 10 Years
Min: -3.95   Med: -2.59   Max: -1.48
Current: -2.37

During the past 13 years, the highest Beneish M-Score of First Tractor Co was -1.48. The lowest was -3.95. And the median was -2.59.


First Tractor Co Beneish M-Score Historical Data

The historical data trend for First Tractor 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.

First Tractor Co Beneish M-Score Chart

First Tractor 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 -3.10 -2.90 -2.42 -3.37 -2.39

First Tractor Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -2.09 -2.39 -2.34 -2.37 -

Competitive Comparison of First Tractor Co's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, First Tractor 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.


First Tractor Co's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, First Tractor Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where First Tractor Co's Beneish M-Score falls into.



First Tractor 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 First Tractor 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 * 1.2295+0.528 * 0.9067+0.404 * 1.0952+0.892 * 0.8941+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5567+4.679 * -0.020982-0.327 * 0.9286
=-2.37

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was HK$1,876 Mil.
Revenue was 3391.904 + 5057.694 + 1396.049 + 3227.652 = HK$13,073 Mil.
Gross Profit was 561.827 + 875.693 + 141.142 + 595.182 = HK$2,174 Mil.
Total Current Assets was HK$7,649 Mil.
Total Assets was HK$15,913 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,560 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$200 Mil.
Total Current Liabilities was HK$6,992 Mil.
Long-Term Debt & Capital Lease Obligation was HK$216 Mil.
Net Income was 329.372 + 651.125 + -96.441 + 355.119 = HK$1,239 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 718.679 + 268.357 + 0 + 586.025 = HK$1,573 Mil.
Total Receivables was HK$1,706 Mil.
Revenue was 3338.859 + 4772.767 + 2384.231 + 4126.366 = HK$14,622 Mil.
Gross Profit was 533.326 + 751.792 + 195.929 + 723.497 = HK$2,205 Mil.
Total Current Assets was HK$7,801 Mil.
Total Assets was HK$15,537 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,651 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$402 Mil.
Total Current Liabilities was HK$7,565 Mil.
Long-Term Debt & Capital Lease Obligation was HK$14 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)
=(1875.608 / 13073.299) / (1706.251 / 14622.223)
=0.143469 / 0.116689
=1.2295

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)
=(2204.544 / 14622.223) / (2173.844 / 13073.299)
=0.150767 / 0.166281
=0.9067

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 - (7649.337 + 2559.531) / 15912.67) / (1 - (7801.114 + 2651.156) / 15537.487)
=0.358444 / 0.327287
=1.0952

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
=13073.299 / 14622.223
=0.8941

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 + 2651.156)) / (0 / (0 + 2559.531))
=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)
=(200.071 / 13073.299) / (401.966 / 14622.223)
=0.015304 / 0.02749
=0.5567

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)
=((216.082 + 6991.943) / 15912.67) / ((14.354 + 7564.598) / 15537.487)
=0.452974 / 0.487785
=0.9286

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
=(1239.175 - 0 - 1573.061) / 15912.67
=-0.020982

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.

First Tractor Co has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.


First Tractor Co Beneish M-Score Related Terms

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First Tractor Co Business Description

Traded in Other Exchanges
Address
No. 154 Jianshe Road, Henan Province, Luoyang, CHN, 471004
First Tractor Co Ltd is a Chinese company engaged in the agricultural machinery manufacturing industry. Its business scope mainly includes manufacturing and selling agricultural machinery, diesel engines and fuel injections, other machinery, and an operating business of a finance company. It has three reporting divisions. The Agricultural Machinery division, which is the key revenue driver, is responsible for the production and sale of agricultural tractors, harvesters, and others. The power machinery division is mainly responsible for producing and selling diesel engines. The financial business is to handle the member units between the entrusted loans and investment, internal transfer settlement, absorption of member units deposits, and other business.
Executives
Fil Limited 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Pandanus Partners L.p. 2201 Interest of corporation controlled by you

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