GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » DLC Asia Ltd (HKSE:08210) » Definitions » Beneish M-Score

DLC Asia (HKSE:08210) Beneish M-Score : -2.86 (As of Mar. 17, 2025)


View and export this data going back to 2018. Start your Free Trial

What is DLC Asia 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:08210' s Beneish M-Score Range Over the Past 10 Years
Min: -4.47   Med: -2.7   Max: 0.32
Current: -2.86

During the past 9 years, the highest Beneish M-Score of DLC Asia was 0.32. The lowest was -4.47. And the median was -2.70.


DLC Asia Beneish M-Score Historical Data

The historical data trend for DLC Asia'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.

DLC Asia Beneish M-Score Chart

DLC Asia Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -2.70 -2.73 -2.72 0.32 -2.86

DLC Asia Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Mar24 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 0.32 - - -2.86 -

Competitive Comparison of DLC Asia's Beneish M-Score

For the Capital Markets subindustry, DLC Asia'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.


DLC Asia's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, DLC Asia's Beneish M-Score distribution charts can be found below:

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



DLC Asia 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 DLC Asia 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 * 0.7996+0.528 * 0.9998+0.404 * 0.7179+0.892 * 0.9636+0.115 * 0.083
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.013835-0.327 * 0.6189
=-2.86

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was HK$11.47 Mil.
Revenue was HK$54.87 Mil.
Gross Profit was HK$19.67 Mil.
Total Current Assets was HK$89.24 Mil.
Total Assets was HK$91.80 Mil.
Property, Plant and Equipment(Net PPE) was HK$1.38 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.46 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.00 Mil.
Total Current Liabilities was HK$6.23 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 Mil.
Net Income was HK$1.86 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$3.13 Mil.
Total Receivables was HK$14.89 Mil.
Revenue was HK$56.94 Mil.
Gross Profit was HK$20.41 Mil.
Total Current Assets was HK$89.50 Mil.
Total Assets was HK$94.02 Mil.
Property, Plant and Equipment(Net PPE) was HK$2.83 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.13 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.00 Mil.
Total Current Liabilities was HK$8.82 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.49 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)
=(11.472 / 54.866) / (14.889 / 56.941)
=0.209091 / 0.261481
=0.7996

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)
=(20.413 / 56.941) / (19.674 / 54.866)
=0.358494 / 0.358583
=0.9998

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 - (89.235 + 1.375) / 91.798) / (1 - (89.504 + 2.825) / 94.024)
=0.012941 / 0.018027
=0.7179

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
=54.866 / 56.941
=0.9636

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))
=(0.126 / (0.126 + 2.825)) / (1.457 / (1.457 + 1.375))
=0.042697 / 0.514477
=0.083

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 / 54.866) / (0 / 56.941)
=0 / 0
=1

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 + 6.23) / 91.798) / ((1.488 + 8.823) / 94.024)
=0.067866 / 0.109663
=0.6189

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
=(1.855 - 0 - 3.125) / 91.798
=-0.013835

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.

DLC Asia has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.


DLC Asia Beneish M-Score Related Terms

Thank you for viewing the detailed overview of DLC Asia's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


DLC Asia Business Description

Traded in Other Exchanges
N/A
Address
8 Fleming Road, Units 2601-3, Tai Tung Building, Wanchai, Hong Kong, HKG
DLC Asia Ltd is an investment holding company. Along with its holdings, the company is known as the interdealer broker in Hong Kong that provides derivatives brokerage services to Professional Investors by dealing in securities and futures contracts. Its revenues are derived from commission income received from customers for providing brokerage services on derivative contracts by various execution channels including HKEx, SGX, and OTC. Its revenue is earned from the HKEx market.
Executives
Tsai Wen Hao 2101 Beneficial owner
Ng Yu Fai 2101 Beneficial owner
Yu Kwok Tung
Mak Sui Yu 2202 Interest of your spouse
Oasis Green Ventures Limited 2101 Beneficial owner
Pacific Asset Limited 2201 Interest of corporation controlled by you
Yip Shui Chi Rowena 2101 Beneficial owner
Jolly Ocean Global Limited
Santo Global Investments Limited
Dense Jungle Limited
Lau Ming Hong Henry
Lo Ying

DLC Asia Headlines

No Headlines