Top Education Group (HKSE:01752) Beneish M-Score : -3.42 (As of Jun. 24, 2024)

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What is Top Education Group 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 -3.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01752' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61 Med: -2.95 Max: -1.52
Current: -3.42

During the past 9 years, the highest Beneish M-Score of Top Education Group was -1.52. The lowest was -3.61. And the median was -2.95.

Top Education Group Beneish M-Score Historical Data

The historical data trend for Top Education Group'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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Top Education Group Beneish M-Score Chart

Top Education Group Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-2.15

-1.52

-2.95

-2.58

-3.42

Top Education Group Semi-Annual Data
	Jun15	Jun16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial											-	-2.58	-	-3.42	-

Competitive Comparison of Top Education Group's Beneish M-Score

For the Education & Training Services subindustry, Top Education Group'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.

Top Education Group's Beneish M-Score Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Top Education Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Top Education Group's Beneish M-Score falls into.

Top Education Group 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 Top Education Group 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 * 0.3697

0.528 * 0.9226

0.404 * 0.8535

0.892 * 1.3687

0.115 * 0.8716

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7552

4.679 * -0.129933

0.327 * 1.0172

-3.42

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was HK$4.2 Mil.
Revenue was HK$141.1 Mil.
Gross Profit was HK$62.0 Mil.
Total Current Assets was HK$234.4 Mil.
Total Assets was HK$400.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$102.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$27.3 Mil.
Selling, General, & Admin. Expense(SGA) was HK$52.8 Mil.
Total Current Liabilities was HK$75.5 Mil.
Long-Term Debt & Capital Lease Obligation was HK$65.3 Mil.
Net Income was HK$5.9 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$57.9 Mil.

Total Receivables was HK$8.2 Mil.
Revenue was HK$103.1 Mil.
Gross Profit was HK$41.8 Mil.
Total Current Assets was HK$208.6 Mil.
Total Assets was HK$408.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$122.9 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$27.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$51.1 Mil.
Total Current Liabilities was HK$57.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$83.0 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)
	=	(4.153 / 141.141)	/	(8.207 / 103.117)
	=	0.029424	/	0.079589
	=	0.3697

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)
	=	(41.783 / 103.117)	/	(61.991 / 141.141)
	=	0.4052	/	0.439213
	=	0.9226

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 - (234.443 + 102.144) / 400.792)	/	(1 - (208.568 + 122.878) / 408.03)
	=	0.160195	/	0.187692
	=	0.8535

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
	=	141.141	/	103.117
	=	1.3687

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))
	=	(27.637 / (27.637 + 122.878))	/	(27.263 / (27.263 + 102.144))
	=	0.183616	/	0.210676
	=	0.8716

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)
	=	(52.797 / 141.141)	/	(51.076 / 103.117)
	=	0.374073	/	0.495321
	=	0.7552

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)
	=	((65.25 + 75.544) / 400.792)	/	((83.037 + 57.882) / 408.03)
	=	0.351289	/	0.345364
	=	1.0172

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
	=	(5.851 - 0	-	57.927)	/	400.792
	=	-0.129933

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.

Top Education Group has a M-score of -3.42 suggests that the company is unlikely to be a manipulator.

Top Education Group Beneish M-Score Related Terms

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Top Education Group (HKSE:01752) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Top Education Group Ltd (HKSE:01752) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Central Avenue, Suite 1, Biomedical Building, Australian Technology Park, Eveleigh, Sydney, NSW, AUS, 2015

Website

https://www.top.edu.au

Top Education Group Ltd offers the provision of private higher education services and English language courses in Australia. The company offers Undergraduate and Postgraduate level degrees in business and accounting areas. Geographically, it operates within Australia. The company generates all of its revenue from Australia.

Executives

Hang Jian Ying	2201 Interest of corporation controlled by you
Lu Qiu Wen	2201 Interest of corporation controlled by you
Yang Qingquan	2101 Beneficial owner
Lee Amen Kwai Ping	2101 Beneficial owner
Chen Shuling	2202 Interest of your spouse
Zhao Long Ji Tuan Kong Gu You Xian Gong Si	2101 Beneficial owner
Huang Xing Shi	2103 Interests held jointly with another person
Lam Josephine Kam Shan	2202 Interest of your spouse
Tristar United Investment Limited	2103 Interests held jointly with another person
Zhu Minshen	2103 Interests held jointly with another person
Liu Zhuo	2202 Interest of your spouse
Wang Xin	2103 Interests held jointly with another person
Xin Jiang Guo Li Min Sheng Gu Quan Tou Zi You Xian Gong Si	2101 Beneficial owner
Pricewaterhousecoopers
Loyal Creation Investment Limited	2101 Beneficial owner

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