Vedan International (Holdings) (HKSE:02317) Beneish M-Score : -3.05 (As of May. 26, 2024)

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What is Vedan 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 -3.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02317' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23 Med: -2.81 Max: -1.57
Current: -3.05

During the past 13 years, the highest Beneish M-Score of Vedan International (Holdings) was -1.57. The lowest was -3.23. And the median was -2.81.

Vedan International (Holdings) Beneish M-Score Historical Data

The historical data trend for Vedan 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.

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Vedan International (Holdings) Beneish M-Score Chart

Vedan International (Holdings) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.63

-3.23

-2.48

-1.57

-3.05

Vedan 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															-2.48	-	-1.57	-	-3.05

Competitive Comparison of Vedan International (Holdings)'s Beneish M-Score

For the Packaged Foods subindustry, Vedan 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.

Vedan International (Holdings)'s Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Vedan International (Holdings)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Vedan International (Holdings)'s Beneish M-Score falls into.

Vedan 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 Vedan 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 * 0.9857

0.528 * 0.6696

0.404 * 1.0659

0.892 * 0.8589

0.115 * 0.7901

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0589

4.679 * -0.065691

0.327 * 0.8221

-3.05

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$348 Mil.
Revenue was HK$3,016 Mil.
Gross Profit was HK$433 Mil.
Total Current Assets was HK$1,817 Mil.
Total Assets was HK$2,995 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,099 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$171 Mil.
Selling, General, & Admin. Expense(SGA) was HK$331 Mil.
Total Current Liabilities was HK$643 Mil.
Long-Term Debt & Capital Lease Obligation was HK$37 Mil.
Net Income was HK$55 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$251 Mil.

Total Receivables was HK$411 Mil.
Revenue was HK$3,511 Mil.
Gross Profit was HK$337 Mil.
Total Current Assets was HK$1,878 Mil.
Total Assets was HK$3,161 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,205 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$144 Mil.
Selling, General, & Admin. Expense(SGA) was HK$363 Mil.
Total Current Liabilities was HK$823 Mil.
Long-Term Debt & Capital Lease Obligation was HK$50 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)
	=	(348.403 / 3015.918)	/	(411.49 / 3511.27)
	=	0.115521	/	0.117191
	=	0.9857

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)
	=	(337.489 / 3511.27)	/	(432.897 / 3015.918)
	=	0.096116	/	0.143537
	=	0.6696

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 - (1816.95 + 1099.245) / 2995.136)	/	(1 - (1877.768 + 1204.736) / 3160.654)
	=	0.026356	/	0.024726
	=	1.0659

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
	=	3015.918	/	3511.27
	=	0.8589

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))
	=	(143.5 / (143.5 + 1204.736))	/	(171.144 / (171.144 + 1099.245))
	=	0.106435	/	0.134718
	=	0.7901

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)
	=	(330.581 / 3015.918)	/	(363.454 / 3511.27)
	=	0.109612	/	0.103511
	=	1.0589

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)
	=	((36.987 + 643.192) / 2995.136)	/	((50.34 + 822.8) / 3160.654)
	=	0.227095	/	0.276253
	=	0.8221

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
	=	(54.559 - 0	-	251.312)	/	2995.136
	=	-0.065691

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.

Vedan International (Holdings) has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.

Vedan International (Holdings) Beneish M-Score Related Terms

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Vedan International (Holdings) (HKSE:02317) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Vedan International (Holdings) Ltd (HKSE:02317) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

National Road 51, Hamlet 1A, Long Thanh District, Phuoc Thai, Dong Nai Province, Ho Chi Minh, VNM

Website

http://www.vedaninternational.com

Vedan International (Holdings) Ltd is an investment holding company engaged in the manufacture and sale of fermentation-based food additives, biochemical products and cassava starch-based industrial products including modified starch, glucose syrup, Monosodium Glutamate (MSG), soda and glutamic acid (GA). The products are sold to food distributors, international trading companies, and manufacturers of food, paper, textiles, and chemical products in Vietnam, other ASEAN member countries, the People's Republic of China (the PRC), Japan, Taiwan, and several European countries.

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