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Kingsoft Cloud Holdings (HKSE:03896) Beneish M-Score : -3.18 (As of Dec. 11, 2024)


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What is Kingsoft Cloud 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 -3.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:03896' s Beneish M-Score Range Over the Past 10 Years
Min: -3.86   Med: -3.18   Max: 6.63
Current: -3.18

During the past 7 years, the highest Beneish M-Score of Kingsoft Cloud Holdings was 6.63. The lowest was -3.86. And the median was -3.18.


Kingsoft Cloud Holdings Beneish M-Score Historical Data

The historical data trend for Kingsoft Cloud 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.

* Premium members only.

Kingsoft Cloud Holdings Beneish M-Score Chart

Kingsoft Cloud Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.57 6.63 -3.52 -3.41

Kingsoft Cloud Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.48 -3.41 -3.19 -3.17 -3.18

Competitive Comparison of Kingsoft Cloud Holdings's Beneish M-Score

For the Software - Application subindustry, Kingsoft Cloud 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.


Kingsoft Cloud Holdings's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Kingsoft Cloud Holdings's Beneish M-Score distribution charts can be found below:

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



Kingsoft Cloud 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 Kingsoft Cloud Holdings 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 * 1.0352+0.528 * 0.6329+0.404 * 0.8412+0.892 * 0.9602+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7257+4.679 * -0.07494-0.327 * 1.4349
=-3.19

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was HK$2,228 Mil.
Revenue was 2076.103 + 2036.583 + 1928.928 + 1883.979 = HK$7,926 Mil.
Gross Profit was 334.007 + 342.714 + 318.561 + 276.877 = HK$1,272 Mil.
Total Current Assets was HK$6,660 Mil.
Total Assets was HK$18,384 Mil.
Property, Plant and Equipment(Net PPE) was HK$5,110 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,018 Mil.
Total Current Liabilities was HK$9,990 Mil.
Long-Term Debt & Capital Lease Obligation was HK$679 Mil.
Net Income was -1163.954 + -380.209 + -390.428 + -310.795 = HK$-2,245 Mil.
Non Operating Income was -851.624 + -21.304 + -67.496 + -10.684 = HK$-951 Mil.
Cash Flow from Operations was 251.439 + 162.74 + -349.068 + 18.283 = HK$83 Mil.
Total Receivables was HK$2,241 Mil.
Revenue was 1743.37 + 2007.528 + 2123.542 + 2379.734 = HK$8,254 Mil.
Gross Profit was 210.508 + 225.982 + 221.176 + 180.86 = HK$839 Mil.
Total Current Assets was HK$7,046 Mil.
Total Assets was HK$15,136 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,616 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,461 Mil.
Total Current Liabilities was HK$6,018 Mil.
Long-Term Debt & Capital Lease Obligation was HK$104 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)
=(2227.689 / 7925.593) / (2241.046 / 8254.174)
=0.281075 / 0.271505
=1.0352

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)
=(838.526 / 8254.174) / (1272.159 / 7925.593)
=0.101588 / 0.160513
=0.6329

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 - (6659.636 + 5110.305) / 18383.703) / (1 - (7046.166 + 1616.468) / 15136.281)
=0.359762 / 0.427691
=0.8412

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
=7925.593 / 8254.174
=0.9602

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 + 1616.468)) / (0 / (0 + 5110.305))
=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)
=(1018.194 / 7925.593) / (1461.227 / 8254.174)
=0.128469 / 0.177029
=0.7257

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)
=((679.384 + 9990.112) / 18383.703) / ((103.989 + 6018.09) / 15136.281)
=0.580378 / 0.404464
=1.4349

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
=(-2245.386 - -951.108 - 83.394) / 18383.703
=-0.07494

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.

Kingsoft Cloud Holdings has a M-score of -3.19 suggests that the company is unlikely to be a manipulator.


Kingsoft Cloud Holdings Beneish M-Score Related Terms

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Kingsoft Cloud Holdings Business Description

Traded in Other Exchanges
Address
No. 33 Xierqi Middle Road, Building D, Xiaomi Science and Technology Park, Haidian District, Beijing, CHN, 100085
Kingsoft Cloud Holdings Ltd is an independent cloud service provider in China. It provides integrated cloud-based services including cloud computing, storage, and delivery. Its products and services are Safety, database, AI, hybrid cloud and others. Its solutions are medical, government affairs, finance, media, Educate, game, Transportation and Logistics, Audio, and video.
Executives
The Bank Of New York Mellon Corporation 2201 Interest of corporation controlled by you
Lei Jun 2201 Interest of corporation controlled by you
Xiaomi Corporation 2201 Interest of corporation controlled by you
Kingsoft Corporation Limited 2101 Beneficial owner
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Canada Pension Plan Investment Board 2101 Beneficial owner
J.p. Morgan Securities Plc 2201 Interest of corporation controlled by you

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