eFuture Holding (eFuture Holding) Beneish M-Score : 0.00 (As of Apr. 25, 2024)

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What is eFuture Holding 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.

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

During the past 13 years, the highest Beneish M-Score of eFuture Holding was 0.00. The lowest was 0.00. And the median was 0.00.

eFuture Holding Beneish M-Score Historical Data

The historical data trend for eFuture Holding'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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eFuture Holding Beneish M-Score Chart

eFuture Holding Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Beneish M-Score

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-2.24

-3.11

-2.55

-2.02

-2.54

eFuture Holding Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Beneish M-Score	Get a 7-Day Free Trial															-	-2.54	-2.10	-2.42	-2.23

Competitive Comparison of eFuture Holding's Beneish M-Score

For the Software - Application subindustry, eFuture Holding'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.

eFuture Holding's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, eFuture Holding's Beneish M-Score distribution charts can be found below:

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

eFuture Holding 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 eFuture Holding 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 * 1.2298

0.528 * 1.0677

0.404 * 0.967

0.892 * 0.9098

0.115 * 0.7783

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0972

4.679 * 0.039895

0.327 * 0.8646

-2.14

This Year (Sep16) TTM:

Last Year (Sep15) TTM:

Total Receivables was $7.12 Mil.
Revenue was 4.948 + 4.223 + 3.047 + 20.539 = $32.76 Mil.
Gross Profit was 2.048 + 1.628 + 0.71 + 8.695 = $13.08 Mil.
Total Current Assets was $21.24 Mil.
Total Assets was $38.25 Mil.
Property, Plant and Equipment(Net PPE) was $0.31 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.11 Mil.
Selling, General, & Admin. Expense(SGA) was $12.14 Mil.
Total Current Liabilities was $16.16 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -1.133 + -0.864 + -1.802 + 3.527 = $-0.27 Mil.
Non Operating Income was -0.13 + 0.066 + -0.047 + 0.127 = $0.02 Mil.
Cash Flow from Operations was -0.377 + 0.178 + -9.432 + 7.817 = $-1.81 Mil.

Total Receivables was $6.37 Mil.
Revenue was 5.677 + 5.284 + 3.785 + 21.257 = $36.00 Mil.
Gross Profit was 2.574 + 1.895 + 1.555 + 9.327 = $15.35 Mil.
Total Current Assets was $22.42 Mil.
Total Assets was $42.00 Mil.
Property, Plant and Equipment(Net PPE) was $0.62 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.32 Mil.
Selling, General, & Admin. Expense(SGA) was $12.16 Mil.
Total Current Liabilities was $20.52 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(7.123 / 32.757)	/	(6.366 / 36.003)
	=	0.21745	/	0.176819
	=	1.2298

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)
	=	(15.351 / 36.003)	/	(13.081 / 32.757)
	=	0.426381	/	0.399334
	=	1.0677

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 - (21.243 + 0.308) / 38.25)	/	(1 - (22.417 + 0.623) / 42.004)
	=	0.436575	/	0.451481
	=	0.967

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
	=	32.757	/	36.003
	=	0.9098

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))
	=	(1.318 / (1.318 + 0.623))	/	(2.106 / (2.106 + 0.308))
	=	0.679031	/	0.872411
	=	0.7783

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)
	=	(12.136 / 32.757)	/	(12.157 / 36.003)
	=	0.370486	/	0.337666
	=	1.0972

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 + 16.158) / 38.25)	/	((0 + 20.522) / 42.004)
	=	0.422431	/	0.488573
	=	0.8646

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
	=	(-0.272 - 0.016	-	-1.814)	/	38.25
	=	0.039895

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.

eFuture Holding has a M-score of -2.14 suggests that the company is unlikely to be a manipulator.

eFuture Holding Beneish M-Score Related Terms

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eFuture Holding (eFuture Holding) Business Description

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Address

Website

http://www.e-future.com.cn

E-Future Information Technology, Inc., established under the Cayman Islands Companies Law on November 2, 2000. The Company changed its name from 'e-Future Information Technology Inc.' to 'eFuture Information Technology Inc.' in December 2008. It provides software and services to China's retail and consumer goods industries. It offers one-stop, end-to-end integrated portfolio of software and services from factory to consumer on seven verticals: Fast Moving Consumer Goods (FMCG), Department Store, Shopping Mall, Grocery, Logistics, Specialty Store and Online Retailers. Its clients include manufacturers, distributors, resellers, logistics companies and retailers. The Company's client base encompasses corporations such as Procter & Gamble, Pepsi, L'Oreal, Kimberly-Clark, Gucci and B&Q as well as Chinese companies. The Company has three business lines: software, professional services and cloud service. Its software solutions include the management of merchandizing, distribution, warehousing, supply chains, customer relationships, logistics and points of sale. It consists of three deployable groups of products: Foundation Solutions, Collaborative Solutions and Intelligent Solutions. Foundation Solutions - are used to meet client needs for services such as retail management, point of sale ('POS'), distribution management, logistics management, warehouse management, vendor payment and control and loyalty card management. Collaborative Solutions - are used to meet client needs for services such as visual SCM and visual process management systems. Depending on the type of customer and their needs, clients use a variety of Collaborative Solutions. Intelligent Solutions - are used to meet client needs for services such as business intelligence, brand analysis, supplier relationship management and customer relationship management systems. Professional Services includes recurring maintenance and support services on existing software installations, delivery services, consulting services and outsourcing services. Maintenance and Support Service - is provided following the installation of its software solutions, as clients will typically require ongoing maintenance support and software upgrades to ensure the efficient operation of their system. Consulting Service - is provided by its consulting services group which consists of business consultants, systems analysts and technical personnel. Outsourcing Service - is flexible by design to meet its clients' changing requirements. Cloud Service consists of cloud services based on cloud computing architecture, such as Salesforce Automation. Its regional service centers in Beijing, Shanghai, Guangzhou, Wuhan, Qingdao, Xi'an, Fuzhou, Hangzhou, Nanjing, Chongqing and Shenzhen.