Arts Optical International Holdings (HKSE:01120) Beneish M-Score : -2.45 (As of May. 25, 2024)

View and export this data going back to 1996. Start your Free Trial

What is Arts Optical International Holdings 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Arts Optical International Holdings's Beneish M-Score or its related term are showing as below:

HKSE:01120' s Beneish M-Score Range Over the Past 10 Years
Min: -5.72 Med: -2.7 Max: -0.14
Current: -2.45

During the past 13 years, the highest Beneish M-Score of Arts Optical International Holdings was -0.14. The lowest was -5.72. And the median was -2.70.

Arts Optical International Holdings Beneish M-Score Historical Data

The historical data trend for Arts Optical International Holdings'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.

Arts Optical International Holdings Beneish M-Score Chart

Arts Optical International Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.24

-5.72

-1.37

-2.54

-2.45

Arts Optical International Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.37	-	-2.54	-	-2.45

Competitive Comparison of Arts Optical International Holdings's Beneish M-Score

For the Medical Instruments & Supplies subindustry, Arts Optical International Holdings'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.

Arts Optical International Holdings's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Arts Optical International Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Arts Optical International Holdings's Beneish M-Score falls into.

Arts Optical International Holdings 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 Arts Optical International Holdings 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 * 1.1803

0.528 * 0.8811

0.404 * 0.9408

0.892 * 1.0456

0.115 * 1.2109

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0665

4.679 * -0.013162

0.327 * 1.1344

-2.45

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$413 Mil.
Revenue was HK$1,196 Mil.
Gross Profit was HK$371 Mil.
Total Current Assets was HK$747 Mil.
Total Assets was HK$1,277 Mil.
Property, Plant and Equipment(Net PPE) was HK$320 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$35 Mil.
Selling, General, & Admin. Expense(SGA) was HK$352 Mil.
Total Current Liabilities was HK$614 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5 Mil.
Net Income was HK$51 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$68 Mil.

Total Receivables was HK$334 Mil.
Revenue was HK$1,144 Mil.
Gross Profit was HK$313 Mil.
Total Current Assets was HK$655 Mil.
Total Assets was HK$1,091 Mil.
Property, Plant and Equipment(Net PPE) was HK$246 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$33 Mil.
Selling, General, & Admin. Expense(SGA) was HK$315 Mil.
Total Current Liabilities was HK$463 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4 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)
	=	(412.677 / 1196.309)	/	(334.37 / 1144.103)
	=	0.344959	/	0.292255
	=	1.1803

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)
	=	(312.613 / 1144.103)	/	(370.989 / 1196.309)
	=	0.273239	/	0.310111
	=	0.8811

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 - (747.382 + 320.272) / 1276.544)	/	(1 - (655.426 + 245.94) / 1091.157)
	=	0.163637	/	0.173936
	=	0.9408

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
	=	1196.309	/	1144.103
	=	1.0456

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))
	=	(33.331 / (33.331 + 245.94))	/	(35.017 / (35.017 + 320.272))
	=	0.11935	/	0.098559
	=	1.2109

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)
	=	(351.836 / 1196.309)	/	(315.493 / 1144.103)
	=	0.294101	/	0.275756
	=	1.0665

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)
	=	((4.981 + 613.953) / 1276.544)	/	((3.55 + 462.816) / 1091.157)
	=	0.484851	/	0.427405
	=	1.1344

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
	=	(51.321 - 0	-	68.123)	/	1276.544
	=	-0.013162

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.

Arts Optical International Holdings has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

Arts Optical International Holdings Beneish M-Score Related Terms

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

Arts Optical International Holdings (HKSE:01120) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Arts Optical International Holdings Ltd (HKSE:01120) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

55 King Yip Street, King Palace Plaza, Units A to G, 32nd Floor, Kwun Tong, Kowloon, Hong Kong, HKG

Website

https://www.artsgroup.com

Arts Optical International Holdings Ltd is an investment holding company. Through its subsidiaries, it is engaged in the manufacturing and trading of prescription frames, sunglasses and optical lens as well as property holding. It operates in three divisions: Original design manufacturing, Distribution. and Lens division. The group is organized into four segments, which are sales of optical products to customers located in Europe, the United States, Asia, and other regions, of which the majority of the revenue is generated from Europe.

Executives

Ng Hoi Ying, Michael	2202 Interest of your spouse
Wu Zhihong	2101 Beneficial owner
Ng Kim Ying
Webb David Michael	2201 Interest of corporation controlled by you
Fmr Llc	2201 Interest of corporation controlled by you
Ratagan International Company Limited	2101 Beneficial owner
Hsbc International Trustee Limited	2301 Trustee

Arts Optical International Holdings (HKSE:01120) Headlines

No Headlines