Great Wall Motor Co (HKSE:02333) Beneish M-Score : -2.22 (As of Apr. 24, 2024)

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What is Great Wall Motor 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 -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Great Wall Motor Co's Beneish M-Score or its related term are showing as below:

HKSE:02333' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -2.33 Max: 23.77
Current: -2.22

During the past 13 years, the highest Beneish M-Score of Great Wall Motor Co was 23.77. The lowest was -3.31. And the median was -2.33.

Great Wall Motor Co Beneish M-Score Historical Data

The historical data trend for Great Wall Motor 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.

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Great Wall Motor Co Beneish M-Score Chart

Great Wall Motor Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.83

-1.78

-3.19

-3.31

-2.22

Great Wall Motor 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															-3.31	-3.02	-2.37	-2.17	-2.22

Competitive Comparison of Great Wall Motor Co's Beneish M-Score

For the Auto Manufacturers subindustry, Great Wall Motor 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.

Great Wall Motor Co's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Great Wall Motor Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Great Wall Motor Co's Beneish M-Score falls into.

Great Wall Motor 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 Great Wall Motor 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 * 0.8584

0.528 * 1.0335

0.404 * 1.0075

0.892 * 1.1939

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0712

4.679 * 0.045607

0.327 * 1.0208

-2.22

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$13,466 Mil.
Revenue was 58745.252 + 53133.73 + 44771.273 + 33074.733 = HK$189,725 Mil.
Gross Profit was 10850.323 + 11508.157 + 7792.484 + 5315.007 = HK$35,466 Mil.
Total Current Assets was HK$129,705 Mil.
Total Assets was HK$220,145 Mil.
Property, Plant and Equipment(Net PPE) was HK$40,937 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$9,248 Mil.
Total Current Liabilities was HK$121,229 Mil.
Long-Term Debt & Capital Lease Obligation was HK$19,043 Mil.
Net Income was 2216.763 + 3897.752 + 1298.378 + 198.45 = HK$7,611 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 0 + 606.785 + 6309.001 + -9344.608 = HK$-2,429 Mil.

Total Receivables was HK$13,140 Mil.
Revenue was 42278.409 + 41761.6 + 33425.011 + 41452.109 = HK$158,917 Mil.
Gross Profit was 7580.182 + 9384.699 + 6616.221 + 7121.675 = HK$30,703 Mil.
Total Current Assets was HK$120,249 Mil.
Total Assets was HK$206,991 Mil.
Property, Plant and Equipment(Net PPE) was HK$40,544 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$7,232 Mil.
Total Current Liabilities was HK$106,984 Mil.
Long-Term Debt & Capital Lease Obligation was HK$22,218 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)
	=	(13465.667 / 189724.988)	/	(13140.076 / 158917.129)
	=	0.070975	/	0.082685
	=	0.8584

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)
	=	(30702.777 / 158917.129)	/	(35465.971 / 189724.988)
	=	0.1932	/	0.186934
	=	1.0335

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 - (129704.505 + 40937.065) / 220145.192)	/	(1 - (120248.649 + 40543.84) / 206991.225)
	=	0.224868	/	0.223192
	=	1.0075

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
	=	189724.988	/	158917.129
	=	1.1939

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 + 40543.84))	/	(0 / (0 + 40937.065))
	=	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)
	=	(9248.218 / 189724.988)	/	(7231.888 / 158917.129)
	=	0.048745	/	0.045507
	=	1.0712

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)
	=	((19043.471 + 121229.134) / 220145.192)	/	((22217.676 + 106983.558) / 206991.225)
	=	0.637182	/	0.624187
	=	1.0208

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
	=	(7611.343 - 0	-	-2428.822)	/	220145.192
	=	0.045607

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.

Great Wall Motor Co has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.

Great Wall Motor Co Beneish M-Score Related Terms

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Great Wall Motor Co (HKSE:02333) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Great Wall Motor Co Ltd (HKSE:02333) » Definitions » Beneish M-Score

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Traded in Other Exchanges

GWLLY:USA GWLLF:USA GRV:Germany 601633:China

Address

No. 2266 Chaoyang Road South, Hebei Province, Baoding, CHN, 071000

Website

https://www.gwm.com.cn

Chinese automobile manufacturer Great Wall Motor is China's market leader in the SUV and pickup truck segments. In 2022, the company sold over 615,000 Haval-branded SUVs and 160,000 WEY- and Tank-branded SUVs, making it the largest SUV manufacturer by sales volume for the 12th year. It also sold more than 195,000 pickup trucks, also ranked number one in sales volume for 25 consecutive years. China's domestic market accounts for about 90% of Great Wall's revenue, with the balance coming from Russia, the Middle East, South Africa, Australia, and Chile, among others.

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