Digital Hollywood Interactive (HKSE:02022) Beneish M-Score : -3.12 (As of Jun. 24, 2024)

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What is Digital Hollywood Interactive 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 -3.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02022' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88 Med: -2.69 Max: 0.82
Current: -3.12

During the past 10 years, the highest Beneish M-Score of Digital Hollywood Interactive was 0.82. The lowest was -3.88. And the median was -2.69.

Digital Hollywood Interactive Beneish M-Score Historical Data

The historical data trend for Digital Hollywood Interactive'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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Digital Hollywood Interactive Beneish M-Score Chart

Digital Hollywood Interactive Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.53

-3.88

-3.30

-2.84

-3.12

Digital Hollywood Interactive Semi-Annual Data
	Dec14	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													-3.30	-	-2.84	-	-3.12

Competitive Comparison of Digital Hollywood Interactive's Beneish M-Score

For the Electronic Gaming & Multimedia subindustry, Digital Hollywood Interactive'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.

Digital Hollywood Interactive's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Digital Hollywood Interactive's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Digital Hollywood Interactive's Beneish M-Score falls into.

Digital Hollywood Interactive 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 Digital Hollywood Interactive 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 * 0.9841

0.528 * 1.0103

0.404 * 0.8491

0.892 * 0.8921

0.115 * 0.9012

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0299

4.679 * -0.08693

0.327 * 1.141

-3.12

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$27.98 Mil.
Revenue was HK$77.39 Mil.
Gross Profit was HK$32.03 Mil.
Total Current Assets was HK$251.59 Mil.
Total Assets was HK$296.47 Mil.
Property, Plant and Equipment(Net PPE) was HK$11.93 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$5.17 Mil.
Selling, General, & Admin. Expense(SGA) was HK$59.74 Mil.
Total Current Liabilities was HK$71.22 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5.14 Mil.
Net Income was HK$-45.07 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-19.30 Mil.

Total Receivables was HK$31.87 Mil.
Revenue was HK$86.75 Mil.
Gross Profit was HK$36.27 Mil.
Total Current Assets was HK$283.96 Mil.
Total Assets was HK$344.87 Mil.
Property, Plant and Equipment(Net PPE) was HK$15.77 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$5.91 Mil.
Selling, General, & Admin. Expense(SGA) was HK$65.02 Mil.
Total Current Liabilities was HK$70.47 Mil.
Long-Term Debt & Capital Lease Obligation was HK$7.38 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)
	=	(27.983 / 77.387)	/	(31.873 / 86.745)
	=	0.361598	/	0.367433
	=	0.9841

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)
	=	(36.272 / 86.745)	/	(32.028 / 77.387)
	=	0.418145	/	0.413868
	=	1.0103

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 - (251.593 + 11.926) / 296.468)	/	(1 - (283.957 + 15.773) / 344.87)
	=	0.111138	/	0.13089
	=	0.8491

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
	=	77.387	/	86.745
	=	0.8921

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))
	=	(5.909 / (5.909 + 15.773))	/	(5.17 / (5.17 + 11.926))
	=	0.27253	/	0.30241
	=	0.9012

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)
	=	(59.737 / 77.387)	/	(65.016 / 86.745)
	=	0.771926	/	0.749507
	=	1.0299

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)
	=	((5.139 + 71.218) / 296.468)	/	((7.381 + 70.466) / 344.87)
	=	0.257556	/	0.225729
	=	1.141

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
	=	(-45.07 - 0	-	-19.298)	/	296.468
	=	-0.08693

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.

Digital Hollywood Interactive has a M-score of -3.12 suggests that the company is unlikely to be a manipulator.

Digital Hollywood Interactive Beneish M-Score Related Terms

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Digital Hollywood Interactive (HKSE:02022) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Digital Hollywood Interactive Ltd (HKSE:02022) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 368 Jiang Nan Da Dao (South), 2nd Floor, Haizhu District, Guangzhou, CHN

Website

https://www.gamehollywood.com/company

Digital Hollywood Interactive Ltd is a publisher of online games developed by third party game developers or its own. The Group licenses online games from game developers and earns game publishing service revenue by making a localised version of the licensed games and publishing them to the game players through distribution platforms, including social networking websites, online application stores, webbased and mobile game portals in certain countries and regions, including the Group's websites. The games licensed to the Group are operated under a free-to-play model whereby game players can play the games free of charge and are charged for the purchase of Game Tokens or other virtual items via payment channels, such as the various mobile carriers and third-party internet payment systems.

Executives

Luo Simin
Di Qi Da Dao Kong Gu You Xian Gong Si	2101 Beneficial owner
Angel Age Limited
Hdq Digital Holdings Limited
Huang Deqiang
Huang Guozhan
Lu Yuanfeng
Luo Simin
Lxt Digital Holdings Limited
Lyf Digital Holdings Limited
7road Holdings Limited	2201 Interest of corporation controlled by you
7 Road International Group Limited
Epic City Limited
The Core Trust Company Limited

Digital Hollywood Interactive (HKSE:02022) Headlines

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