Goldway Education Group (HKSE:08160) Beneish M-Score : 3.07 (As of Apr. 28, 2024)

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What is Goldway Education Group 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.

Warning Sign:

Beneish M-Score 3.07 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:08160' s Beneish M-Score Range Over the Past 10 Years
Min: -4.84 Med: -2.98 Max: 3.07
Current: 3.07

During the past 10 years, the highest Beneish M-Score of Goldway Education Group was 3.07. The lowest was -4.84. And the median was -2.98.

Goldway Education Group Beneish M-Score Historical Data

The historical data trend for Goldway Education Group'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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Goldway Education Group Beneish M-Score Chart

Goldway Education Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-4.84

-2.74

-3.76

-3.38

3.07

Goldway Education Group Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-	3.07	-	-

Competitive Comparison of Goldway Education Group's Beneish M-Score

For the Education & Training Services subindustry, Goldway Education Group'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.

Goldway Education Group's Beneish M-Score Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Goldway Education Group's Beneish M-Score distribution charts can be found below:

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

Goldway Education Group 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 Goldway Education Group 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 * 3.3315

0.528 * 0.9534

0.404 * 10.8948

0.892 * 1.2161

0.115 * 2.2359

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 3.272

4.679 * -0.089242

0.327 * 1.2751

3.07

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was HK$3.46 Mil.
Revenue was HK$43.66 Mil.
Gross Profit was HK$12.74 Mil.
Total Current Assets was HK$29.56 Mil.
Total Assets was HK$52.51 Mil.
Property, Plant and Equipment(Net PPE) was HK$8.32 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.16 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.19 Mil.
Total Current Liabilities was HK$9.44 Mil.
Long-Term Debt & Capital Lease Obligation was HK$6.77 Mil.
Net Income was HK$-0.25 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$4.44 Mil.

Total Receivables was HK$0.85 Mil.
Revenue was HK$35.90 Mil.
Gross Profit was HK$9.99 Mil.
Total Current Assets was HK$33.87 Mil.
Total Assets was HK$37.17 Mil.
Property, Plant and Equipment(Net PPE) was HK$2.35 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.77 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.05 Mil.
Total Current Liabilities was HK$6.88 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.12 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)
	=	(3.456 / 43.662)	/	(0.853 / 35.902)
	=	0.079153	/	0.023759
	=	3.3315

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)
	=	(9.988 / 35.902)	/	(12.741 / 43.662)
	=	0.278202	/	0.29181
	=	0.9534

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 - (29.557 + 8.316) / 52.509)	/	(1 - (33.87 + 2.351) / 37.172)
	=	0.278733	/	0.025584
	=	10.8948

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
	=	43.662	/	35.902
	=	1.2161

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))
	=	(3.773 / (3.773 + 2.351))	/	(3.163 / (3.163 + 8.316))
	=	0.616101	/	0.275547
	=	2.2359

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)
	=	(0.187 / 43.662)	/	(0.047 / 35.902)
	=	0.004283	/	0.001309
	=	3.272

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)
	=	((6.767 + 9.436) / 52.509)	/	((2.121 + 6.875) / 37.172)
	=	0.308576	/	0.24201
	=	1.2751

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
	=	(-0.25 - 0	-	4.436)	/	52.509
	=	-0.089242

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.

Goldway Education Group has a M-score of 3.07 signals that the company is likely to be a manipulator.

Goldway Education Group Beneish M-Score Related Terms

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Goldway Education Group (HKSE:08160) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Goldway Education Group Ltd (HKSE:08160) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Shop B10, 1/F, Goodrich Shopping Arcade, Tuen Mun, New Territories, Hong Kong, HKG

Website

http://www.goldwayedugp.com

Goldway Education Group Ltd is an investment holding company. Its subsidiaries are principally engaged in the provision of tutoring services and franchising services in Hong Kong. The Group provides private tutoring services including primary and secondary tutoring services under the trade name of "Logic Tutorial Centre" and "Pedagog Education Centre".

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