Metropolis Capital Holdings (HKSE:08621) Beneish M-Score : -2.74 (As of May. 12, 2024)

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What is Metropolis Capital 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 -2.74 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:08621' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -1.74 Max: 7.67
Current: -2.74

During the past 8 years, the highest Beneish M-Score of Metropolis Capital Holdings was 7.67. The lowest was -2.77. And the median was -1.74.

Metropolis Capital Holdings Beneish M-Score Historical Data

The historical data trend for Metropolis Capital 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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Metropolis Capital Holdings Beneish M-Score Chart

Metropolis Capital Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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7.67

-0.54

-1.39

-2.09

-2.74

Metropolis Capital 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															-2.09	-	-	-	-2.74

Competitive Comparison of Metropolis Capital Holdings's Beneish M-Score

For the Credit Services subindustry, Metropolis Capital 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.

Metropolis Capital Holdings's Beneish M-Score Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Metropolis Capital Holdings's Beneish M-Score distribution charts can be found below:

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

Metropolis Capital 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 Metropolis Capital 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 * 1.4315

0.528 * 1.2611

0.404 * 0.3151

0.892 * 1.008

0.115 * 0.9255

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1988

4.679 * -0.096009

0.327 * 1.1028

-2.74

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$259.38 Mil.
Revenue was HK$54.28 Mil.
Gross Profit was HK$16.38 Mil.
Total Current Assets was HK$405.36 Mil.
Total Assets was HK$440.70 Mil.
Property, Plant and Equipment(Net PPE) was HK$3.25 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.45 Mil.
Selling, General, & Admin. Expense(SGA) was HK$6.91 Mil.
Total Current Liabilities was HK$221.77 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3.70 Mil.
Net Income was HK$-6.68 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$35.63 Mil.

Total Receivables was HK$179.76 Mil.
Revenue was HK$53.85 Mil.
Gross Profit was HK$20.50 Mil.
Total Current Assets was HK$325.28 Mil.
Total Assets was HK$427.84 Mil.
Property, Plant and Equipment(Net PPE) was HK$3.68 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.47 Mil.
Selling, General, & Admin. Expense(SGA) was HK$5.72 Mil.
Total Current Liabilities was HK$137.00 Mil.
Long-Term Debt & Capital Lease Obligation was HK$61.49 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)
	=	(259.375 / 54.277)	/	(179.761 / 53.848)
	=	4.778728	/	3.338304
	=	1.4315

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)
	=	(20.497 / 53.848)	/	(16.383 / 54.277)
	=	0.380646	/	0.301841
	=	1.2611

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 - (405.359 + 3.246) / 440.696)	/	(1 - (325.278 + 3.678) / 427.84)
	=	0.072819	/	0.231124
	=	0.3151

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
	=	54.277	/	53.848
	=	1.008

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))
	=	(0.465 / (0.465 + 3.678))	/	(0.448 / (0.448 + 3.246))
	=	0.112238	/	0.121278
	=	0.9255

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)
	=	(6.907 / 54.277)	/	(5.716 / 53.848)
	=	0.127255	/	0.106151
	=	1.1988

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)
	=	((3.702 + 221.769) / 440.696)	/	((61.487 + 137.003) / 427.84)
	=	0.511625	/	0.463935
	=	1.1028

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
	=	(-6.681 - 0	-	35.63)	/	440.696
	=	-0.096009

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.

Metropolis Capital Holdings has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

Metropolis Capital Holdings Beneish M-Score Related Terms

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Metropolis Capital Holdings (HKSE:08621) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Metropolis Capital Holdings Ltd (HKSE:08621) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Room 7003A, 887 Huai Hai Zhong Road, Huangpu District, Shanghai, CHN, 200020

Website

https://www.metropolis-leasing.com

Metropolis Capital Holdings Ltd is a financial leasing company engaged in providing customized vehicle finance leasing to its customers. The Group categorizes its vehicle finance leasing into typical finance leasing and sale and leaseback arrangements. Typical finance leasing generally involves the leasing of the vehicle acquired by the company from a vehicle dealer prior to a lease transaction, and The sale and leaseback arrangement generally involves the leasing of a new or second-hand vehicle acquired by its customer from a vehicle dealer prior to a lease transaction. The Group's operation is in the People's Republic of China.

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