Global Digital Creations Holdings (HKSE:08271) Beneish M-Score : -0.20 (As of Jun. 06, 2024)

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What is Global Digital Creations 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.

Warning Sign:

Beneish M-Score -0.2 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:08271' s Beneish M-Score Range Over the Past 10 Years
Min: -7.76 Med: -2.45 Max: 0.87
Current: -0.2

During the past 13 years, the highest Beneish M-Score of Global Digital Creations Holdings was 0.87. The lowest was -7.76. And the median was -2.45.

Global Digital Creations Holdings Beneish M-Score Historical Data

The historical data trend for Global Digital Creations 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.

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Global Digital Creations Holdings Beneish M-Score Chart

Global Digital Creations Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.42

-2.48

-2.56

-2.01

-0.20

Global Digital Creations Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.01	-	-	-	-0.20

Competitive Comparison of Global Digital Creations Holdings's Beneish M-Score

For the Entertainment subindustry, Global Digital Creations 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.

Global Digital Creations Holdings's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Global Digital Creations Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Global Digital Creations Holdings's Beneish M-Score falls into.

Global Digital Creations 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 Global Digital Creations Holdings 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 * 0.9907

0.528 * 5.4814

0.404 * 1.0555

0.892 * 0.9709

0.115 * 0.4164

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1929

4.679 * -0.002458

0.327 * 0.8875

-0.20

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$16.15 Mil.
Revenue was HK$70.19 Mil.
Gross Profit was HK$5.10 Mil.
Total Current Assets was HK$273.44 Mil.
Total Assets was HK$545.08 Mil.
Property, Plant and Equipment(Net PPE) was HK$12.35 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$14.41 Mil.
Selling, General, & Admin. Expense(SGA) was HK$41.93 Mil.
Total Current Liabilities was HK$215.41 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 Mil.
Net Income was HK$-17.52 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-16.18 Mil.

Total Receivables was HK$16.79 Mil.
Revenue was HK$72.30 Mil.
Gross Profit was HK$28.78 Mil.
Total Current Assets was HK$333.08 Mil.
Total Assets was HK$632.36 Mil.
Property, Plant and Equipment(Net PPE) was HK$14.28 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.13 Mil.
Selling, General, & Admin. Expense(SGA) was HK$36.20 Mil.
Total Current Liabilities was HK$281.57 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.02 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)
	=	(16.147 / 70.189)	/	(16.788 / 72.295)
	=	0.23005	/	0.232215
	=	0.9907

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)
	=	(28.777 / 72.295)	/	(5.097 / 70.189)
	=	0.39805	/	0.072618
	=	5.4814

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 - (273.435 + 12.351) / 545.081)	/	(1 - (333.078 + 14.279) / 632.363)
	=	0.4757	/	0.4507
	=	1.0555

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
	=	70.189	/	72.295
	=	0.9709

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))
	=	(4.127 / (4.127 + 14.279))	/	(14.409 / (14.409 + 12.351))
	=	0.22422	/	0.538453
	=	0.4164

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)
	=	(41.927 / 70.189)	/	(36.201 / 72.295)
	=	0.597344	/	0.50074
	=	1.1929

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 + 215.41) / 545.081)	/	((0.017 + 281.566) / 632.363)
	=	0.395189	/	0.445287
	=	0.8875

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
	=	(-17.52 - 0	-	-16.18)	/	545.081
	=	-0.002458

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.

Global Digital Creations Holdings has a M-score of -0.20 signals that the company is likely to be a manipulator.

Global Digital Creations Holdings Beneish M-Score Related Terms

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Global Digital Creations Holdings (HKSE:08271) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Global Digital Creations Holdings Ltd (HKSE:08271) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

191 Java Road, Unit 1606, 16th Floor, K. Wah Centre, North Point, Hong Kong, HKG

Website

http://www.gdc-world.com

Global Digital Creations Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in computer graphic (CG) creation and production. It operates in two segments Interactive Entertainment and Digital Assets segment including Interactive Entertainment and Digital Assets, an exhibition of television series and movies as well as the production of animated films. It is New Cultural and Sports Space segment that includes integrating culture and technology development business the original business of property leasing and building management services and new businesses. It operates in China, South Korea, Hong Kong, and other countries, of which the majority of the revenue comes from China.

Executives

Shougang Group Co., Ltd.	2201 Interest of corporation controlled by you
Chen Zheng	2101 Beneficial owner
Shougang Holding (hong Kong) Limited	2201 Interest of corporation controlled by you
Upper Nice Assets Ltd.	2101 Beneficial owner

Global Digital Creations Holdings (HKSE:08271) Headlines

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