Continental Aerospace Technologies Holding (HKSE:00232) Beneish M-Score : -2.29 (As of Apr. 15, 2025)

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What is Continental Aerospace Technologies Holding 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 -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Continental Aerospace Technologies Holding's Beneish M-Score or its related term are showing as below:

HKSE:00232' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99 Med: -2.43 Max: 23.41
Current: -2.29

During the past 13 years, the highest Beneish M-Score of Continental Aerospace Technologies Holding was 23.41. The lowest was -2.99. And the median was -2.43.

Continental Aerospace Technologies Holding Beneish M-Score Historical Data

The historical data trend for Continental Aerospace Technologies Holding'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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Continental Aerospace Technologies Holding Beneish M-Score Chart

Continental Aerospace Technologies Holding Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.96

-2.57

-2.99

-2.29

Continental Aerospace Technologies Holding Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.99	-	-2.29	-	-

Competitive Comparison of Continental Aerospace Technologies Holding's Beneish M-Score

For the Aerospace & Defense subindustry, Continental Aerospace Technologies Holding'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.

Continental Aerospace Technologies Holding's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Continental Aerospace Technologies Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Continental Aerospace Technologies Holding's Beneish M-Score falls into.

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Continental Aerospace Technologies Holding 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 Continental Aerospace Technologies Holding 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 * 1.1629

0.528 * 0.9845

0.404 * 0.9167

0.892 * 1.0989

0.115 * 0.963

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.033

4.679 * 0.00587

0.327 * 1.0621

-2.29

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$168 Mil.
Revenue was HK$1,830 Mil.
Gross Profit was HK$568 Mil.
Total Current Assets was HK$1,742 Mil.
Total Assets was HK$3,979 Mil.
Property, Plant and Equipment(Net PPE) was HK$870 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$137 Mil.
Selling, General, & Admin. Expense(SGA) was HK$380 Mil.
Total Current Liabilities was HK$507 Mil.
Long-Term Debt & Capital Lease Obligation was HK$282 Mil.
Net Income was HK$162 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$139 Mil.

Total Receivables was HK$131 Mil.
Revenue was HK$1,666 Mil.
Gross Profit was HK$508 Mil.
Total Current Assets was HK$1,509 Mil.
Total Assets was HK$3,800 Mil.
Property, Plant and Equipment(Net PPE) was HK$867 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$131 Mil.
Selling, General, & Admin. Expense(SGA) was HK$335 Mil.
Total Current Liabilities was HK$423 Mil.
Long-Term Debt & Capital Lease Obligation was HK$287 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)
	=	(167.746 / 1830.186)	/	(131.274 / 1665.515)
	=	0.091655	/	0.078819
	=	1.1629

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)
	=	(508.488 / 1665.515)	/	(567.574 / 1830.186)
	=	0.305304	/	0.310118
	=	0.9845

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 - (1741.669 + 870.319) / 3979.064)	/	(1 - (1509.21 + 866.508) / 3799.848)
	=	0.343567	/	0.374786
	=	0.9167

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
	=	1830.186	/	1665.515
	=	1.0989

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))
	=	(130.993 / (130.993 + 866.508))	/	(137.427 / (137.427 + 870.319))
	=	0.131321	/	0.136371
	=	0.963

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)
	=	(380.292 / 1830.186)	/	(335.026 / 1665.515)
	=	0.207789	/	0.201155
	=	1.033

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)
	=	((282.199 + 506.859) / 3979.064)	/	((286.701 + 422.783) / 3799.848)
	=	0.198302	/	0.186714
	=	1.0621

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
	=	(162.209 - 0	-	138.851)	/	3979.064
	=	0.00587

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.

Continental Aerospace Technologies Holding has a M-score of -2.29 suggests that the company is unlikely to be a manipulator.

Continental Aerospace Technologies Holding Beneish M-Score Related Terms

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Continental Aerospace Technologies Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Continental Aerospace Technologies Holding Ltd (HKSE:00232) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CTQ0:Germany

Address

95 Queensway, Unit B, 15th Floor, United Centre, Hong Kong, HKG

Website

https://www.avic.com.hk

Continental Aerospace Technologies Holding Ltd, formerly AVIC International Holding (HK) Ltd is a diversified company based in Hong Kong. It is engaged in the general aviation aircraft piston engine business, which engages in the design, development and production of general aviation aircraft piston engines and spare parts as well as the provision of aftermarket services and support for piston engines. The company generates most of the revenue from United States.

Executives

Avic Innovation Holding Limited	2201 Interest of corporation controlled by you
Aviation Industry Corporation Of China, Ltd	2201 Interest of corporation controlled by you
Avic International Holding Corporation	2201 Interest of corporation controlled by you

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