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Gulf Resources (Gulf Resources) Beneish M-Score : 1.14 (As of Apr. 26, 2024)


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What is Gulf Resources 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 1.14 higher than -1.78, which implies that the company might have manipulated its financial results.

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

GURE' s Beneish M-Score Range Over the Past 10 Years
Min: -36.07   Med: -2.52   Max: 83.31
Current: 1.14

During the past 13 years, the highest Beneish M-Score of Gulf Resources was 83.31. The lowest was -36.07. And the median was -2.52.


Gulf Resources Beneish M-Score Historical Data

The historical data trend for Gulf Resources'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.

Gulf Resources Beneish M-Score Chart

Gulf Resources Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -13.69 83.31 -1.16 -1.99 -3.57

Gulf Resources Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 -3.16 -3.57 -3.18 -3.59 1.14

Competitive Comparison of Gulf Resources's Beneish M-Score

For the Chemicals subindustry, Gulf Resources'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.


Gulf Resources's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Gulf Resources's Beneish M-Score distribution charts can be found below:

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



Gulf Resources 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 Gulf Resources 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 * 0.3526+0.528 * 10.4384+0.404 * 0.9688+0.892 * 0.6108+0.115 * 0.8629
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6865+4.679 * -0.06874-0.327 * 0.8632
=1.14

* 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 (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was $2.15 Mil.
Revenue was 5.866 + 8.006 + 9.302 + 18.589 = $41.76 Mil.
Gross Profit was -0.508 + 0.684 + 2.533 + -1.026 = $1.68 Mil.
Total Current Assets was $114.94 Mil.
Total Assets was $278.89 Mil.
Property, Plant and Equipment(Net PPE) was $148.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.01 Mil.
Selling, General, & Admin. Expense(SGA) was $4.97 Mil.
Total Current Liabilities was $9.87 Mil.
Long-Term Debt & Capital Lease Obligation was $8.30 Mil.
Net Income was -1.776 + -0.682 + -0.558 + -2.69 = $-5.71 Mil.
Non Operating Income was -1.008 + -1.056 + -2.409 + -5.98 = $-10.45 Mil.
Cash Flow from Operations was -1.142 + 6.18 + 4.832 + 14.048 = $23.92 Mil.
Total Receivables was $10.00 Mil.
Revenue was 22.863 + 15.712 + 8.931 + 20.87 = $68.38 Mil.
Gross Profit was 14.457 + 7.611 + 4.381 + 2.314 = $28.76 Mil.
Total Current Assets was $107.16 Mil.
Total Assets was $290.54 Mil.
Property, Plant and Equipment(Net PPE) was $166.98 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.61 Mil.
Selling, General, & Admin. Expense(SGA) was $4.82 Mil.
Total Current Liabilities was $13.05 Mil.
Long-Term Debt & Capital Lease Obligation was $8.89 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)
=(2.153 / 41.763) / (9.996 / 68.376)
=0.051553 / 0.146192
=0.3526

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)
=(28.763 / 68.376) / (1.683 / 41.763)
=0.420659 / 0.040299
=10.4384

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 - (114.938 + 148.697) / 278.893) / (1 - (107.159 + 166.978) / 290.544)
=0.054709 / 0.05647
=0.9688

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
=41.763 / 68.376
=0.6108

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))
=(24.612 / (24.612 + 166.978)) / (26.009 / (26.009 + 148.697))
=0.128462 / 0.148873
=0.8629

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)
=(4.969 / 41.763) / (4.824 / 68.376)
=0.118981 / 0.070551
=1.6865

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)
=((8.299 + 9.871) / 278.893) / ((8.885 + 13.045) / 290.544)
=0.06515 / 0.075479
=0.8632

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
=(-5.706 - -10.453 - 23.918) / 278.893
=-0.06874

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.

Gulf Resources has a M-score of 1.14 signals that the company is likely to be a manipulator.


Gulf Resources Beneish M-Score Related Terms

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Gulf Resources (Gulf Resources) Business Description

Traded in Other Exchanges
Address
Level 11, Vegetable Building, Industrial Park of the East Shouguang City, Shandong, Shouguang, CHN, 262700
Gulf Resources Inc is a holding company engaged in the manufacture and trade of bromine and crude salt, and natural gas; manufactures and sells chemical products used in oil and gas field exploration, oil and gas distribution, oil field drilling, wastewater processing, papermaking chemical agents and inorganic chemicals, and manufactures and sells materials for human and animal antibiotics. It operates in four segments: Bromine, Crude Salt, Chemical Products, and Natural Gas. It derives maximum revenue from the Bromine segment which is commonly used in brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants.
Executives
Xiaobin Liu director, officer: Chief Executive Officer GULF RESOURCES, INC. NO.99 WENCHANG ROAD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY F4 262714
Naihui Miao officer: COO and Secretary GULF RESOURCES INC. NO.99, WENCHANG ROAD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY F4 262714
Min Li director, officer: Chief Financial Officer CHEMING INDUSTRIAL PARK UNIT, HAOYUAN CHEMICAL COMPANY LIMITED, SHOUGUANG CITY, SHAN F4 F4 262714
Tengfei Zhang director C/O GULF RESOURCES, INC. 99 WENCHANG RD., CHENMING INDUSTRIAL PARK, SHOUGUANG CITY, SHANDONG F4 262714
Shengwei Ma director LEVEL 11, VEGETABLE BUILDING, INDUSTRIAL PARK OF THE EAST CITY, SHOUGUANG CITY, SHANGDON PROVI F4 262700
Shitong Jiang director GULF RESOURCES, INC. NO.99 WENCHANG ROAD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY F4 262714
Yang Zou director C/O GULF RESOURCES, INC., 99 WENCHANG RD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY, SHANDONG F4 262714
Nan Li director C/O GULF RESOURCES, INC., 99 WENCHANG RD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY, SHANDONG F4 262714
Ming Yang 10 percent owner NO. 501 BO HAI ROAD, SHOUGUANG CITY, SHANDONG F4 262700
Weijie Chen 10 percent owner NORTH WEIGAO ROAD, LUOCHENG SUB-DISTRICT OFFICE, SHOUGUANG F4 262700
Hap Trading, Llc 10 percent owner 395 HUDSON STREET, SUITE 701, NEW YORK NY 10014
Vignolo Biagio M Jr director 1 WHITEHALL STREET, NEW YORK NY 10004
Richard Khaleel director 110 RIVERSIDE DRIVE, APT 3E, NEW YORK NY 10024
Shandong Haoyuan Industry Group Ltd 10 percent owner WO PU TOWN, QING HE OIL EXTRACTION PLANT, 2ND LIVING DISTRICT, SHOUGUANG CITY F4 51800
Wenxiang Yu 10 percent owner NO. 108 SHENG CHENG ROAD, BUILDING NO. 1, UNIT 3, ROOM 402, SHOUGUANG CITY, SHAN F4 262700