Carote (HKSE:02549) Beneish M-Score: -0.28 (As of Jul. 22, 2026)

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HKSE:02549 Carote Ltd HKSE:02549
21 GF Score
Price HK$3.74
! 4 Warning Signs
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What is Carote Beneish M-Score?

Carote HKSE:02549 +0.27% 21 Beneish M-Score is -0.28 as of Jul. 22, 2026. GuruFocus rates HKSE:02549 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review. Among 417 Furnishings, Fixtures & Appliances companies, Carote ranks worse than 95.44% on this metric.

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.

Warning Sign:

Beneish M-Score -0.28 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:02549' s Beneish M-Score Range Over the Past 10 Years
Min: -2.28   Med: -2.11   Max: -0.28
Current: -0.28

During the past 5 years, the highest Beneish M-Score of Carote was -0.28. The lowest was -2.28. And the median was -2.11.

Carote Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Carote'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.

Carote Beneish M-Score Chart

Carote Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -2.28 -2.11 -0.28

Carote Semi-Annual Data
Dec21 Dec22 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial -2.28 0.00 -2.11 0.00 -0.28

HKSE:02549 vs SN, SGI, MHK: Beneish M-Score Comparison

For the Furnishings, Fixtures & Appliances subindustry, Carote'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.

Carote Beneish M-Score vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Carote's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Carote's Beneish M-Score falls into.


HKSE:02549
21GF Score
Carote Ltd HKSE:02549
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Carote 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 Carote 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 * 2.2958+0.528 * 1.2679+0.404 * 0.94+0.892 * 1.0763+0.115 * 1.0641
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.808+4.679 * 0.164529-0.327 * 0.9554
=-0.28

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was HK$228 Mil.
Revenue was HK$2,383 Mil.
Gross Profit was HK$757 Mil.
Total Current Assets was HK$1,794 Mil.
Total Assets was HK$2,097 Mil.
Property, Plant and Equipment(Net PPE) was HK$82 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$407 Mil.
Total Current Liabilities was HK$542 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0 Mil.
Net Income was HK$285 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$-60 Mil.
 Total Receivables was HK$92 Mil.
Revenue was HK$2,214 Mil.
Gross Profit was HK$892 Mil.
Total Current Assets was HK$1,552 Mil.
Total Assets was HK$1,838 Mil.
Property, Plant and Equipment(Net PPE) was HK$80 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$7 Mil.
Selling, General, & Admin. Expense(SGA) was HK$468 Mil.
Total Current Liabilities was HK$498 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0 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)
=(228.322 / 2382.529) / (92.398 / 2213.552)
=0.095832 / 0.041742
=2.2958

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)
=(891.93 / 2213.552) / (757.197 / 2382.529)
=0.402941 / 0.317812
=1.2679

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 - (1794.291 + 81.898) / 2096.924) / (1 - (1552.478 + 79.932) / 1838.265)
=0.105266 / 0.111983
=0.94

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
=2382.529 / 2213.552
=1.0763

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))
=(6.679 / (6.679 + 79.932)) / (6.399 / (6.399 + 81.898))
=0.077115 / 0.072471
=1.0641

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)
=(406.615 / 2382.529) / (467.534 / 2213.552)
=0.170665 / 0.211214
=0.808

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 + 542.293) / 2096.924) / ((0 + 497.608) / 1838.265)
=0.258614 / 0.270694
=0.9554

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
=(284.805 - 0 - -60.199) / 2096.924
=0.164529

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.

Carote has a M-score of -0.28 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -0.28 mean?
Carote (HKSE:02549) has a Beneish M-Score of -0.28 as of Jul. 22, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Carote and its competitors. According to the industry distribution chart, Carote ranks #398 out of 417 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 95.4%.
Is Carote's Beneish M-Score too high?
Carote's current Beneish M-Score is -0.28. Based on the distribution chart, Carote ranks #398 out of 417 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Carote has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Carote's Beneish M-Score compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Carote ranks #398 out of 417 companies for Beneish M-Score. This places Carote in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Furnishings, Fixtures & Appliances company?
A good Beneish M-Score depends on the Furnishings, Fixtures & Appliances industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Carote and its competitors. Carote's current Beneish M-Score is -0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carote stock overvalued right now?
Carote (HKSE:02549) has a current Beneish M-Score of -0.28. The current Beneish M-Score is -0.28. Carote's overall GF Score™ is 21/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Carote (HKSE:02549), the current Beneish M-Score is -0.28 as of Jul. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Carote Business Description

Address Unit 1, Tower 6, 3rd - 5th Floor, Xiaoshan District, Zhejiang Province, Hangzhou, CHN
Carote Ltd is a brand of kitchenware products. Its products are designed to provide customers with practical, well-designed, and affordable items that promote a modern cooking lifestyle. The company offers a wide range of kitchenware, from essential pots and pans to well-designed tableware and beverage containers, aiming to meet various kitchen needs and enhance the culinary experience. Geographically, the company operates in Mainland China, the United States, Western Europe, Japan, Southeast Asia, and other countries. The majority of its revenue comes from the United States.
21GF Score

Get the complete analysis for HKSE:02549

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$3.74
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