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.
NetEase Beneish M-Score Chart
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NetEase Annual Data
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Trend |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
Dec24 |
| Beneish M-Score |
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-2.47 |
-2.66 |
-2.94 |
-2.32 |
-2.85 |
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NetEase Quarterly Data
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Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
Dec24 |
Mar25 |
| Beneish M-Score |
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-2.57 |
-2.58 |
-2.79 |
-2.85 |
-2.79 |
Competitive Comparison of NetEase's Beneish M-Score
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's Beneish M-Score Distribution in the Interactive Media Industry
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 * 0.8479 | + | 0.528 * 0.9873 | + | 0.404 * 0.9578 | + | 0.892 * 1.017 | + | 0.115 * 1.1063 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8346 | + | 4.679 * -0.058253 | - | 0.327 * 0.7891 |
| = | -2.79 |
* 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 (Mar25) TTM: | Last Year (Mar24) TTM: |
Total Receivables was $930 Mil.
Revenue was 3976.735 + 3673.797 + 3704.053 + 3513.006 = $14,868 Mil.
Gross Profit was 2549.13 + 2234.997 + 2328.52 + 2211.286 = $9,324 Mil.
Total Current Assets was $21,750 Mil.
Total Assets was $27,707 Mil.
Property, Plant and Equipment(Net PPE) was $1,166 Mil.
Depreciation, Depletion and Amortization(DDA) was $323 Mil.
Selling, General, & Admin. Expense(SGA) was $2,377 Mil.
Total Current Liabilities was $6,778 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Net Income was 1420.986 + 1204.071 + 924.03 + 931.637 = $4,481 Mil.
Non Operating Income was 131.029 + 179.679 + -61.266 + -6.893 = $243 Mil.
Cash Flow from Operations was 1670.044 + 1787.218 + 1494.575 + 900.359 = $5,852 Mil.
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Total Receivables was $1,079 Mil.
Revenue was 3728.632 + 3801.037 + 3736.747 + 3352.878 = $14,619 Mil.
Gross Profit was 2362.83 + 2356.395 + 2324.819 + 2007.347 = $9,051 Mil.
Total Current Assets was $21,078 Mil.
Total Assets was $27,087 Mil.
Property, Plant and Equipment(Net PPE) was $1,119 Mil.
Depreciation, Depletion and Amortization(DDA) was $353 Mil.
Selling, General, & Admin. Expense(SGA) was $2,800 Mil.
Total Current Liabilities was $8,338 Mil.
Long-Term Debt & Capital Lease Obligation was $59 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) |
| = | (930.049 / 14867.591) | / | (1078.608 / 14619.294) |
| = | 0.062555 | / | 0.07378 |
| | = | 0.8479 |
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) |
| = | (9051.391 / 14619.294) | / | (9323.933 / 14867.591) |
| = | 0.61914 | / | 0.627131 |
| | = | 0.9873 |
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 - (21749.784 + 1166.245) / 27707.245) | / | (1 - (21077.865 + 1118.752) / 27086.7) |
| = | 0.172923 | / | 0.180534 |
| | = | 0.9578 |
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 |
| = | 14867.591 | / | 14619.294 |
| | = | 1.017 |
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)) |
| = | (352.936 / (352.936 + 1118.752)) | / | (322.79 / (322.79 + 1166.245)) |
| = | 0.239817 | / | 0.216778 |
| | = | 1.1063 |
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) |
| = | (2376.932 / 14867.591) | / | (2800.268 / 14619.294) |
| = | 0.159873 | / | 0.191546 |
| | = | 0.8346 |
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 + 6778.335) / 27707.245) | / | ((59.432 + 8338.454) / 27086.7) |
| = | 0.244641 | / | 0.310037 |
| | = | 0.7891 |
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 |
| = | (4480.724 - 242.549 | - | 5852.196) | / | 27707.245 |
| | = | -0.058253 |
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 -2.79 suggests that the company is unlikely to be a manipulator.
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