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Raymond Industrial (HKSE:00229) Beneish M-Score : -2.28 (As of Dec. 14, 2024)


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What is Raymond Industrial 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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00229' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Med: -2.68   Max: -2.11
Current: -2.28

During the past 13 years, the highest Beneish M-Score of Raymond Industrial was -2.11. The lowest was -3.50. And the median was -2.68.


Raymond Industrial Beneish M-Score Historical Data

The historical data trend for Raymond Industrial'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.

Raymond Industrial Beneish M-Score Chart

Raymond Industrial 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 -2.89 -2.64 -2.18 -3.50 -2.28

Raymond Industrial 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 - -3.50 - -2.28 -

Competitive Comparison of Raymond Industrial's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Raymond Industrial'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.


Raymond Industrial's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Raymond Industrial's Beneish M-Score distribution charts can be found below:

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



Raymond Industrial 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 Raymond Industrial 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 * 1.1082+0.528 * 0.907+0.404 * 1.0131+0.892 * 1.2819+0.115 * 1.0562
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9502+4.679 * -0.026794-0.327 * 1.0011
=-2.28

* 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 HK$242 Mil.
Revenue was HK$1,363 Mil.
Gross Profit was HK$184 Mil.
Total Current Assets was HK$762 Mil.
Total Assets was HK$891 Mil.
Property, Plant and Equipment(Net PPE) was HK$126 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$27 Mil.
Selling, General, & Admin. Expense(SGA) was HK$132 Mil.
Total Current Liabilities was HK$217 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0 Mil.
Net Income was HK$68 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$92 Mil.
Total Receivables was HK$170 Mil.
Revenue was HK$1,063 Mil.
Gross Profit was HK$130 Mil.
Total Current Assets was HK$711 Mil.
Total Assets was HK$854 Mil.
Property, Plant and Equipment(Net PPE) was HK$140 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$32 Mil.
Selling, General, & Admin. Expense(SGA) was HK$109 Mil.
Total Current Liabilities was HK$208 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0 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)
=(242.106 / 1362.732) / (170.431 / 1063.058)
=0.177662 / 0.160321
=1.1082

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)
=(129.987 / 1063.058) / (183.725 / 1362.732)
=0.122276 / 0.134821
=0.907

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 - (761.955 + 126.067) / 891.05) / (1 - (711.225 + 140.05) / 854.14)
=0.003398 / 0.003354
=1.0131

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
=1362.732 / 1063.058
=1.2819

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))
=(31.579 / (31.579 + 140.05)) / (26.593 / (26.593 + 126.067))
=0.183996 / 0.174198
=1.0562

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)
=(132.214 / 1362.732) / (108.544 / 1063.058)
=0.097021 / 0.102105
=0.9502

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)
=((0 + 217.352) / 891.05) / ((0 + 208.115) / 854.14)
=0.243928 / 0.243654
=1.0011

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
=(67.871 - 0 - 91.746) / 891.05
=-0.026794

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.

Raymond Industrial has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.


Raymond Industrial Beneish M-Score Related Terms

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Raymond Industrial Business Description

Traded in Other Exchanges
N/A
Address
8 On Ping Street, Rooms 1801-1813, 18th Floor, Grandtech Centre, Shatin, New Territories, Hong Kong, HKG
Raymond Industrial Ltd is engaged in the manufacture and sale of electrical home appliances. Its reportable operating segments are North America mainly including the United States of America and Canada, Latin America mainly including Mexico, Europe mainly including the United Kingdom and the Netherlands, Asia mainly including the PRC, Korea, and Japan, and the Rest of the World.
Executives
Wong Man Hin Raymond 2101 Beneficial owner
Diamond-harvest Limited 2101 Beneficial owner
Wong Kin Lae Wilson 2201 Interest of corporation controlled by you
Sun Kwing Hai Amelia 2202 Interest of your spouse
Wong Ying Man John 2101 Beneficial owner
Webb David Michael 2101 Beneficial owner
Zhong Guo Bing Qi Gong Ye Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Bing Qi Zhuang Bei Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Bei Fang Gong Ye You Xian Gong Si 2201 Interest of corporation controlled by you
An Li Shi Ye You Xian Gong Si 2101 Beneficial owner

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