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Tak Lee Machinery Holdings (HKSE:02102) Beneish M-Score : -3.04 (As of Dec. 14, 2024)


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What is Tak Lee Machinery 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 -3.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tak Lee Machinery Holdings's Beneish M-Score or its related term are showing as below:

HKSE:02102' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.32   Max: 2.3
Current: -3.04

During the past 10 years, the highest Beneish M-Score of Tak Lee Machinery Holdings was 2.30. The lowest was -3.04. And the median was -2.32.


Tak Lee Machinery Holdings Beneish M-Score Historical Data

The historical data trend for Tak Lee Machinery 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.

Tak Lee Machinery Holdings Beneish M-Score Chart

Tak Lee Machinery Holdings Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.59 - 2.30 -2.04 -3.04

Tak Lee Machinery Holdings Semi-Annual Data
Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
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 2.30 - -2.04 - -3.04

Competitive Comparison of Tak Lee Machinery Holdings's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, Tak Lee Machinery 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.


Tak Lee Machinery Holdings's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Tak Lee Machinery Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tak Lee Machinery Holdings's Beneish M-Score falls into.



Tak Lee Machinery 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 Tak Lee Machinery Holdings 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 * 0.763+0.528 * 0.9515+0.404 * 0.8711+0.892 * 1.027+0.115 * 1.0884
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9684+4.679 * -0.080246-0.327 * 0.7708
=-3.04

* 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 (Jul24) TTM:Last Year (Jul23) TTM:
Total Receivables was HK$81.6 Mil.
Revenue was HK$279.3 Mil.
Gross Profit was HK$57.3 Mil.
Total Current Assets was HK$306.6 Mil.
Total Assets was HK$491.7 Mil.
Property, Plant and Equipment(Net PPE) was HK$171.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$37.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$42.1 Mil.
Total Current Liabilities was HK$24.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.3 Mil.
Net Income was HK$7.1 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$46.5 Mil.
Total Receivables was HK$104.2 Mil.
Revenue was HK$272.0 Mil.
Gross Profit was HK$53.1 Mil.
Total Current Assets was HK$308.9 Mil.
Total Assets was HK$499.2 Mil.
Property, Plant and Equipment(Net PPE) was HK$173.9 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$42.3 Mil.
Selling, General, & Admin. Expense(SGA) was HK$42.3 Mil.
Total Current Liabilities was HK$32.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.2 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)
=(81.631 / 279.335) / (104.172 / 271.997)
=0.292233 / 0.38299
=0.763

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)
=(53.102 / 271.997) / (57.317 / 279.335)
=0.19523 / 0.205191
=0.9515

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 - (306.56 + 171.12) / 491.701) / (1 - (308.946 + 173.914) / 499.202)
=0.028515 / 0.032736
=0.8711

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
=279.335 / 271.997
=1.027

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))
=(42.346 / (42.346 + 173.914)) / (37.538 / (37.538 + 171.12))
=0.195811 / 0.179902
=1.0884

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)
=(42.058 / 279.335) / (42.288 / 271.997)
=0.150565 / 0.155472
=0.9684

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)
=((2.265 + 24.261) / 491.701) / ((2.164 + 32.775) / 499.202)
=0.053947 / 0.06999
=0.7708

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
=(7.086 - 0 - 46.543) / 491.701
=-0.080246

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.

Tak Lee Machinery Holdings has a M-score of -3.04 suggests that the company is unlikely to be a manipulator.


Tak Lee Machinery Holdings Beneish M-Score Related Terms

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Tak Lee Machinery Holdings Business Description

Traded in Other Exchanges
N/A
Address
D.D. 111, Lot No. 117, Sheung Che Village, Pat Heung, Yuen Long, New Territories, Hong Kong, HKG
Tak Lee Machinery Holdings Ltd is an earthmoving equipment sales and leasing service provider. The company's operating segment includes Sales of heavy equipment and spare parts; Lease of heavy equipment and Maintenance and ancillary services. It generates maximum revenue from the Sales of heavy equipment and spare parts segment which includes trading of heavy equipment and spare parts in Hong Kong. Geographically, it derives revenue from Hong Kong.

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