Shanghai Fosun Pharmaceutical (Group) Co (HKSE:02196) Beneish M-Score : -2.53 (As of May. 01, 2024)

View and export this data going back to 2012. Start your Free Trial

What is Shanghai Fosun Pharmaceutical (Group) Co 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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Shanghai Fosun Pharmaceutical (Group) Co's Beneish M-Score or its related term are showing as below:

HKSE:02196' s Beneish M-Score Range Over the Past 10 Years
Min: -2.53 Med: -2.34 Max: -2.07
Current: -2.53

During the past 13 years, the highest Beneish M-Score of Shanghai Fosun Pharmaceutical (Group) Co was -2.07. The lowest was -2.53. And the median was -2.34.

Shanghai Fosun Pharmaceutical (Group) Co Beneish M-Score Historical Data

The historical data trend for Shanghai Fosun Pharmaceutical (Group) Co'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.

Shanghai Fosun Pharmaceutical (Group) Co Beneish M-Score Chart

Shanghai Fosun Pharmaceutical (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.35

-2.32

-2.14

-2.32

-2.53

Shanghai Fosun Pharmaceutical (Group) Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.32	-2.36	-2.44	-2.48	-2.53

Competitive Comparison of Shanghai Fosun Pharmaceutical (Group) Co's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Shanghai Fosun Pharmaceutical (Group) Co'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.

Shanghai Fosun Pharmaceutical (Group) Co's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Shanghai Fosun Pharmaceutical (Group) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shanghai Fosun Pharmaceutical (Group) Co's Beneish M-Score falls into.

Shanghai Fosun Pharmaceutical (Group) Co 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 Shanghai Fosun Pharmaceutical (Group) Co 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 * 1.1331

0.528 * 0.9857

0.404 * 0.9712

0.892 * 0.8952

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1348

4.679 * -0.008993

0.327 * 1.0093

-2.54

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$9,935 Mil.
Revenue was 11702.801 + 9981.449 + 11511.463 + 12381.696 = HK$45,577 Mil.
Gross Profit was 5341.615 + 4531.03 + 5600.971 + 6350.952 = HK$21,825 Mil.
Total Current Assets was HK$36,962 Mil.
Total Assets was HK$124,111 Mil.
Property, Plant and Equipment(Net PPE) was HK$24,325 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$11,966 Mil.
Total Current Liabilities was HK$36,923 Mil.
Long-Term Debt & Capital Lease Obligation was HK$17,013 Mil.
Net Income was 112.878 + 542.354 + 864.634 + 1124.156 = HK$2,644 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 1041.909 + 699.009 + 1024.614 + 994.62 = HK$3,760 Mil.

Total Receivables was HK$9,794 Mil.
Revenue was 13767.727 + 11489.982 + 12850.504 + 12804.378 = HK$50,913 Mil.
Gross Profit was 6780.217 + 5524.97 + 6149.944 + 5576.729 = HK$24,032 Mil.
Total Current Assets was HK$39,397 Mil.
Total Assets was HK$119,672 Mil.
Property, Plant and Equipment(Net PPE) was HK$17,899 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$11,778 Mil.
Total Current Liabilities was HK$37,184 Mil.
Long-Term Debt & Capital Lease Obligation was HK$14,344 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)
	=	(9935.168 / 45577.409)	/	(9794.378 / 50912.591)
	=	0.217984	/	0.192376
	=	1.1331

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)
	=	(24031.86 / 50912.591)	/	(21824.568 / 45577.409)
	=	0.472022	/	0.478846
	=	0.9857

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 - (36961.598 + 24324.983) / 124110.658)	/	(1 - (39396.777 + 17898.807) / 119671.512)
	=	0.506194	/	0.521226
	=	0.9712

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
	=	45577.409	/	50912.591
	=	0.8952

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))
	=	(0 / (0 + 17898.807))	/	(0 / (0 + 24324.983))
	=	0	/	0
	=	1

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)
	=	(11965.686 / 45577.409)	/	(11778.245 / 50912.591)
	=	0.262535	/	0.231342
	=	1.1348

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)
	=	((17013.197 + 36923.333) / 124110.658)	/	((14344.045 + 37184.444) / 119671.512)
	=	0.434584	/	0.430583
	=	1.0093

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
	=	(2644.022 - 0	-	3760.152)	/	124110.658
	=	-0.008993

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.

Shanghai Fosun Pharmaceutical (Group) Co has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Shanghai Fosun Pharmaceutical (Group) Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Shanghai Fosun Pharmaceutical (Group) Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Shanghai Fosun Pharmaceutical (Group) Co (HKSE:02196) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Shanghai Fosun Pharmaceutical (Group) Co Ltd (HKSE:02196) » Definitions » Beneish M-Score

Traded in Other Exchanges

SFOSF:USA 08HH:Germany 600196:China

Address

No. 1289 Yishan Road, Building A, Fosun Technology Park, Shanghai, CHN, 200233

Website

https://www.fosunpharma.com

Shanghai Fosun Pharmaceutical (Group) Co Ltd is a specialty and generic drug manufacturing company. Shanghai Fosun maintains five business segments, including Pharmaceutical manufacturing, Healthcare Services, Medical devices, and medical diagnosis. Most of the company's revenue is generated by its Pharmaceutical manufacturing segment. The company considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

Shanghai Fosun Pharmaceutical (Group) Co (HKSE:02196) Headlines

No Headlines