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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Jun17 |
Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
| Beneish M-Score |
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|
|
|
|
|
|
|
|
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|
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-2.75 |
-2.79 |
-2.61 |
-2.66 |
-2.60 |
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 * 0.8677 | + | 0.528 * 0.9797 | + | 0.404 * 1.07 | + | 0.892 * 1.2343 | + | 0.115 * 1.2089 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9436 | + | 4.679 * -0.0545 | - | 0.327 * 1.0252 |
| = | -2.60 |
* 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 (Mar22) TTM: | Last Year (Mar21) TTM: |
Total Receivables was $832 Mil.
Revenue was 3712.7387069319 + 3826.7258568446 + 3437.0690643248 + 3194.4748638132 = $14,171 Mil.
Gross Profit was 2023.1975223024 + 2028.1318198232 + 1829.3400244722 + 1741.5741634241 = $7,622 Mil.
Total Current Assets was $18,768 Mil.
Total Assets was $25,100 Mil.
Property, Plant and Equipment(Net PPE) was $921 Mil.
Depreciation, Depletion and Amortization(DDA) was $504 Mil.
Selling, General, & Admin. Expense(SGA) was $2,609 Mil.
Total Current Liabilities was $8,159 Mil.
Long-Term Debt & Capital Lease Obligation was $500 Mil.
Net Income was 692.56107556032 + 893.99996859938 + 492.81817759398 + 551.24575875486 = $2,631 Mil.
Non Operating Income was -67.813888976452 + 250.18385065863 + 0.98121214937348 + 69.301167315175 = $253 Mil.
Cash Flow from Operations was 722.2759512026 + 1313.896032531 + 974.65359416384 + 735.06708171206 = $3,746 Mil.
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Total Receivables was $777 Mil.
Revenue was 3151.2096637946 + 3021.9959322863 + 2739.5856459049 + 2567.8951084501 = $11,481 Mil.
Gross Profit was 1697.5593235958 + 1518.1689171624 + 1451.537749978 + 1382.763076141 = $6,050 Mil.
Total Current Assets was $17,744 Mil.
Total Assets was $23,116 Mil.
Property, Plant and Equipment(Net PPE) was $714 Mil.
Depreciation, Depletion and Amortization(DDA) was $533 Mil.
Selling, General, & Admin. Expense(SGA) was $2,240 Mil.
Total Current Liabilities was $7,779 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) |
| = | (831.78829240614 / 14171.008491914) | / | (776.64931115514 / 11480.686350436) |
| = | 0.05869648 | / | 0.06764833 |
| | = | 0.8677 |
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) |
| = | (6050.0290668772 / 11480.686350436) | / | (7622.243530022 / 14171.008491914) |
| = | 0.52697451 | / | 0.53787587 |
| | = | 0.9797 |
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 - (18767.70639599 + 920.80950729754) / 25099.787063014) | / | (1 - (17743.869050362 + 714.41843677525) / 23115.679245573) |
| = | 0.21559032 | / | 0.20148193 |
| | = | 1.07 |
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 |
| = | 14171.008491914 | / | 11480.686350436 |
| | = | 1.2343 |
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)) |
| = | (533.15187164247 / (533.15187164247 + 714.41843677525)) | / | (503.53189992475 / (503.53189992475 + 920.80950729754)) |
| = | 0.42735216 | / | 0.35351911 |
| | = | 1.2089 |
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) |
| = | (2608.5972825457 / 14171.008491914) | / | (2239.6441957454 / 11480.686350436) |
| = | 0.18407986 | / | 0.19507929 |
| | = | 0.9436 |
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) |
| = | ((500.28370582858 + 8158.8101692778) / 25099.787063014) | / | ((0 + 7778.9236511081) / 23115.679245573) |
| = | 0.34498675 | / | 0.33652153 |
| | = | 1.0252 |
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 |
| = | (2630.6249805085 - 252.65234114672 | - | 3745.8926596095) | / | 25099.787063014 |
| | = | -0.0545 |
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 -2.60 suggests that the company is unlikely to be a manipulator.
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