Ebang International Holdings (Ebang International Holdings) Beneish M-Score : -4.11 (As of May. 14, 2024)

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What is Ebang International 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 -4.11 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

EBON' s Beneish M-Score Range Over the Past 10 Years
Min: -4.11 Med: -2.86 Max: 0.2
Current: -4.11

During the past 6 years, the highest Beneish M-Score of Ebang International Holdings was 0.20. The lowest was -4.11. And the median was -2.86.

Ebang International Holdings Beneish M-Score Historical Data

The historical data trend for Ebang International 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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Ebang International Holdings Beneish M-Score Chart

Ebang International Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.20

-1.69

-4.02

-4.11

Ebang International Holdings Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial						-1.69	-	-4.02	-	-4.11

Competitive Comparison of Ebang International Holdings's Beneish M-Score

For the Computer Hardware subindustry, Ebang International 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.

Ebang International Holdings's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ebang International Holdings's Beneish M-Score distribution charts can be found below:

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

Ebang International 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 Ebang International 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 * 1.8908

0.528 * -0.1386

0.404 * 0.3007

0.892 * 0.1502

0.115 * 2.453

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.8277

4.679 * -0.072723

0.327 * 0.9149

-4.11

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $0.95 Mil.
Revenue was $4.86 Mil.
Gross Profit was $-16.70 Mil.
Total Current Assets was $250.43 Mil.
Total Assets was $298.24 Mil.
Property, Plant and Equipment(Net PPE) was $39.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.52 Mil.
Selling, General, & Admin. Expense(SGA) was $30.94 Mil.
Total Current Liabilities was $11.96 Mil.
Long-Term Debt & Capital Lease Obligation was $4.88 Mil.
Net Income was $-36.77 Mil.
Gross Profit was $-3.43 Mil.
Cash Flow from Operations was $-11.65 Mil.

Total Receivables was $3.34 Mil.
Revenue was $32.33 Mil.
Gross Profit was $15.41 Mil.
Total Current Assets was $269.11 Mil.
Total Assets was $344.17 Mil.
Property, Plant and Equipment(Net PPE) was $42.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.71 Mil.
Selling, General, & Admin. Expense(SGA) was $42.67 Mil.
Total Current Liabilities was $15.49 Mil.
Long-Term Debt & Capital Lease Obligation was $5.76 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)
	=	(0.947 / 4.855)	/	(3.335 / 32.328)
	=	0.195057	/	0.103161
	=	1.8908

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)
	=	(15.412 / 32.328)	/	(-16.704 / 4.855)
	=	0.476738	/	-3.440577
	=	-0.1386

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 - (250.432 + 39.302) / 298.24)	/	(1 - (269.105 + 42.412) / 344.165)
	=	0.028521	/	0.094861
	=	0.3007

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
	=	4.855	/	32.328
	=	0.1502

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))
	=	(10.712 / (10.712 + 42.412))	/	(3.52 / (3.52 + 39.302))
	=	0.201641	/	0.082201
	=	2.453

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)
	=	(30.935 / 4.855)	/	(42.668 / 32.328)
	=	6.371782	/	1.319847
	=	4.8277

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)
	=	((4.883 + 11.96) / 298.24)	/	((5.756 + 15.488) / 344.165)
	=	0.056475	/	0.061726
	=	0.9149

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
	=	(-36.772 - -3.43	-	-11.653)	/	298.24
	=	-0.072723

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.

Ebang International Holdings has a M-score of -4.11 suggests that the company is unlikely to be a manipulator.

Ebang International Holdings Beneish M-Score Related Terms

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Ebang International Holdings (Ebang International Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Ebang International Holdings Inc (NAS:EBON) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

7EBA:Germany

Address

No. 20-02B, 12 Marina View, Asia Square Tower 2, Singapore, SGP, 018961

Website

https://www.ebang.com.cn

Ebang International Holdings Inc is an application-specific integrated circuit, or ASIC, chip design company and a manufacturer of high-performance Bitcoin mining machines. The company's Ebit E10 model, is a commercial mining machine that uses 10 nm ASIC chips among other mining machine producers. It operates in a single segment selling Bitcoin mining machines and related accessories, telecommunications products and provision of management and maintenance services.