Guanze Medical Information Industry (Holding) Co (HKSE:02427) Beneish M-Score : -2.54 (As of Jun. 24, 2024)

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What is Guanze Medical Information Industry (Holding) 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Guanze Medical Information Industry (Holding) Co's Beneish M-Score or its related term are showing as below:

HKSE:02427' s Beneish M-Score Range Over the Past 10 Years
Min: -2.54 Med: -1.98 Max: -1.88
Current: -2.54

During the past 5 years, the highest Beneish M-Score of Guanze Medical Information Industry (Holding) Co was -1.88. The lowest was -2.54. And the median was -1.98.

Guanze Medical Information Industry (Holding) Co Beneish M-Score Historical Data

The historical data trend for Guanze Medical Information Industry (Holding) 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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Guanze Medical Information Industry (Holding) Co Beneish M-Score Chart

Guanze Medical Information Industry (Holding) Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.88

-1.98

-2.54

Guanze Medical Information Industry (Holding) Co Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-1.88	-	-1.98	-	-2.54

Competitive Comparison of Guanze Medical Information Industry (Holding) Co's Beneish M-Score

For the Diagnostics & Research subindustry, Guanze Medical Information Industry (Holding) 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.

Guanze Medical Information Industry (Holding) Co's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Guanze Medical Information Industry (Holding) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Guanze Medical Information Industry (Holding) Co's Beneish M-Score falls into.

Guanze Medical Information Industry (Holding) 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 Guanze Medical Information Industry (Holding) 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 * 0.6021

0.528 * 0.8355

0.404 * 1.2674

0.892 * 0.8631

0.115 * 1.0156

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9106

4.679 * 0.059901

0.327 * 0.6594

-2.54

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$137.8 Mil.
Revenue was HK$170.7 Mil.
Gross Profit was HK$93.4 Mil.
Total Current Assets was HK$297.7 Mil.
Total Assets was HK$341.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$38.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$6.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$44.7 Mil.
Total Current Liabilities was HK$45.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.4 Mil.
Net Income was HK$30.2 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$9.7 Mil.

Total Receivables was HK$265.1 Mil.
Revenue was HK$197.8 Mil.
Gross Profit was HK$90.4 Mil.
Total Current Assets was HK$327.3 Mil.
Total Assets was HK$366.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$33.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$5.9 Mil.
Selling, General, & Admin. Expense(SGA) was HK$56.9 Mil.
Total Current Liabilities was HK$74.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.1 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)
	=	(137.763 / 170.708)	/	(265.075 / 197.784)
	=	0.80701	/	1.340225
	=	0.6021

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)
	=	(90.427 / 197.784)	/	(93.414 / 170.708)
	=	0.457201	/	0.547215
	=	0.8355

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 - (297.718 + 38.094) / 341.798)	/	(1 - (327.283 + 33.633) / 365.973)
	=	0.017513	/	0.013818
	=	1.2674

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
	=	170.708	/	197.784
	=	0.8631

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))
	=	(5.907 / (5.907 + 33.633))	/	(6.57 / (6.57 + 38.094))
	=	0.149393	/	0.147098
	=	1.0156

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)
	=	(44.732 / 170.708)	/	(56.918 / 197.784)
	=	0.262038	/	0.287779
	=	0.9106

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)
	=	((0.429 + 45.701) / 341.798)	/	((0.107 + 74.804) / 365.973)
	=	0.134963	/	0.20469
	=	0.6594

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
	=	(30.152 - 0	-	9.678)	/	341.798
	=	0.059901

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.

Guanze Medical Information Industry (Holding) Co has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Guanze Medical Information Industry (Holding) Co Beneish M-Score Related Terms

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Guanze Medical Information Industry (Holding) Co (HKSE:02427) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Guanze Medical Information Industry (Holding) Co Ltd (HKSE:02427) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 2966 Chunhui Road, Room 501-A, Block 10 Strategic Emerging Industry Base, High-tech Zone, Shandong Province, Jinan, CHN

Website

https://www.guanzegroup.com

Guanze Medical Information Industry (Holding) Co Ltd is a medical imaging solutions provider, principally engaged in providing medical imaging film products and medical imaging cloud services in Shandong Province.

Executives

Meng A Capital Limited	2101 Beneficial owner
Meng Xianzhen	2201 Interest of corporation controlled by you
Yang Duanling	2202 Interest of your spouse

Guanze Medical Information Industry (Holding) Co (HKSE:02427) Headlines

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