NetEase Beneish M-Score Historical Data
The historical data trend for NetEase'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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NetEase Annual Data
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Trend |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
| Beneish M-Score |
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|
|
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-2.79 |
-2.29 |
-2.28 |
-2.47 |
-2.66 |
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NetEase Quarterly Data
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Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
| Beneish M-Score |
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|
|
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|
|
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-2.79 |
-2.61 |
-2.66 |
-2.60 |
-2.63 |
Competitive Comparison
For the Electronic Gaming & Multimedia subindustry, NetEase'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.
NetEase Beneish M-Score Distribution
For the Interactive Media industry and Communication Services sector, NetEase's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where NetEase's Beneish M-Score falls into.
NetEase 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 NetEase 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 * 0.9424 | + | 0.528 * 0.9779 | + | 0.404 * 0.9193 | + | 0.892 * 1.1923 | + | 0.115 * 1.2342 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9184 | + | 4.679 * -0.054 | - | 0.327 * 1.0302 |
| = | -2.63 |
* 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 (Jun22) TTM: | Last Year (Jun21) TTM: |
Total Receivables was $779 Mil.
Revenue was 3459.0569363126 + 3712.7387069319 + 3826.7258568446 + 3437.0690643248 = $14,436 Mil.
Gross Profit was 1932.9506213407 + 2023.1975223024 + 2028.1318198232 + 1829.3400244722 = $7,814 Mil.
Total Current Assets was $19,120 Mil.
Total Assets was $25,119 Mil.
Property, Plant and Equipment(Net PPE) was $900 Mil.
Depreciation, Depletion and Amortization(DDA) was $468 Mil.
Selling, General, & Admin. Expense(SGA) was $2,641 Mil.
Total Current Liabilities was $8,580 Mil.
Long-Term Debt & Capital Lease Obligation was $501 Mil.
Net Income was 790.33875014936 + 692.56107556032 + 893.99996859938 + 492.81817759398 = $2,870 Mil.
Non Operating Income was 41.667015175051 + -67.813888976452 + 250.18385065863 + 0.98121214937348 = $225 Mil.
Cash Flow from Operations was 990.43478910264 + 722.2759512026 + 1313.896032531 + 974.65359416384 = $4,001 Mil.
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Total Receivables was $693 Mil.
Revenue was 3194.4748638132 + 3151.2096637946 + 3021.9959322863 + 2739.5856459049 = $12,107 Mil.
Gross Profit was 1741.5741634241 + 1697.5593235958 + 1518.1689171624 + 1451.537749978 = $6,409 Mil.
Total Current Assets was $18,048 Mil.
Total Assets was $24,102 Mil.
Property, Plant and Equipment(Net PPE) was $731 Mil.
Depreciation, Depletion and Amortization(DDA) was $534 Mil.
Selling, General, & Admin. Expense(SGA) was $2,412 Mil.
Total Current Liabilities was $8,458 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
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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) |
| = | (778.64007049827 / 14435.590564414) | / | (692.99673151751 / 12107.266105799) |
| = | 0.05393891 | / | 0.05723809 |
| | = | 0.9424 |
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) |
| = | (6408.8401541603 / 12107.266105799) | / | (7813.6199879385 / 14435.590564414) |
| = | 0.52933834 | / | 0.5412747 |
| | = | 0.9779 |
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 - (19119.543105508 + 899.50486916) / 25119.426753495) | / | (1 - (18048.122178988 + 730.63875486381) / 24102.260389105) |
| = | 0.20304519 | / | 0.22087138 |
| | = | 0.9193 |
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 |
| = | 14435.590564414 | / | 12107.266105799 |
| | = | 1.1923 |
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)) |
| = | (533.92064956599 / (533.92064956599 + 730.63875486381)) | / | (467.74777061299 / (467.74777061299 + 899.50486916)) |
| = | 0.42221872 | / | 0.34210778 |
| | = | 1.2342 |
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) |
| = | (2641.3933602514 / 14435.590564414) | / | (2412.1908323735 / 12107.266105799) |
| = | 0.18297785 | / | 0.19923497 |
| | = | 0.9184 |
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) |
| = | ((501.209821962 + 8579.9807324651) / 25119.426753495) | / | ((0 + 8457.8557198444) / 24102.260389105) |
| = | 0.36152061 | / | 0.35091546 |
| | = | 1.0302 |
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 |
| = | (2869.717971903 - 225.0181890066 | - | 4001.2603670001) | / | 25119.426753495 |
| | = | -0.054 |
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.
NetEase has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.
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