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KE Holdings Beneish M-Score

: -2.44 (As of Today)
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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.

Good Sign:

Beneish M-Score -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BEKE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.44   Med: -2.2   Max: -1.63
Current: -2.44

During the past 5 years, the highest Beneish M-Score of KE Holdings was -1.63. The lowest was -2.44. And the median was -2.20.


KE Holdings Beneish M-Score Historical Data

The historical data trend for KE Holdings'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.

KE Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
- - - -2.31 -2.15

KE Holdings Quarterly Data
Dec17 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Beneish M-Score 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 -2.24 -1.85 -1.63 -2.15 -2.44

Competitive Comparison

For the Real Estate Services subindustry, KE Holdings'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.

   

KE Holdings Beneish M-Score Distribution

For the Real Estate industry and Real Estate sector, KE Holdings's Beneish M-Score distribution charts can be found below:

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



KE Holdings 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 KE Holdings 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 * 0.514+0.528 * 1.3777+0.404 * 2.4346+0.892 * 0.9063+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1276+4.679 * -0.0448-0.327 * 0.9199
=-2.44

* 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 $1,273 Mil.
Revenue was 1977.739652618 + 2792.4137660339 + 2802.8654182736 + 3762.4169649805 = $11,335 Mil.
Gross Profit was 349.86350597358 + 457.70524233432 + 426.65783808063 + 830.03346303502 = $2,064 Mil.
Total Current Assets was $9,689 Mil.
Total Assets was $15,652 Mil.
Property, Plant and Equipment(Net PPE) was $1,446 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $1,945 Mil.
Total Current Liabilities was $4,484 Mil.
Long-Term Debt & Capital Lease Obligation was $678 Mil.
Net Income was -97.662894429909 + -145.96297866328 + -273.36400105323 + 173.05634241245 = $-344 Mil.
Non Operating Income was 58.778961636667 + -157.37302372317 + 38.672304570729 + 108.91346303502 = $49 Mil.
Cash Flow from Operations was 131.56873561769 + 200.83604163723 + -179.42707123275 + 155.84700389105 = $309 Mil.
Total Receivables was $2,732 Mil.
Revenue was 3178.8307300066 + 3466.8305476121 + 3017.195988606 + 2844.2243278355 = $12,507 Mil.
Gross Profit was 739.76823480625 + 829.48021959537 + 643.58940475142 + 925.05577835517 = $3,138 Mil.
Total Current Assets was $13,065 Mil.
Total Assets was $16,427 Mil.
Property, Plant and Equipment(Net PPE) was $1,415 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $1,903 Mil.
Total Current Liabilities was $5,212 Mil.
Long-Term Debt & Capital Lease Obligation was $677 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)
=(1272.8353245279 / 11335.435801906) / (2732.0789752569 / 12507.08159406)
=0.11228817 / 0.21844256
=0.514

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)
=(3137.8936375082 / 12507.08159406) / (2064.2600494236 / 11335.435801906)
=0.25088936 / 0.18210681
=1.3777

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 - (9689.4422028181 + 1445.7056394414) / 15651.640134918) / (1 - (13064.902548035 + 1414.6938211307) / 16426.574667097)
=0.28856351 / 0.11852613
=2.4346

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
=11335.435801906 / 12507.08159406
=0.9063

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))
=(0 / (0 + 1414.6938211307)) / (0 / (0 + 1445.7056394414))
=0 / 0
=1

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)
=(1944.9273953774 / 11335.435801906) / (1903.0847583673 / 12507.08159406)
=0.17157941 / 0.15216058
=1.1276

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)
=((678.32140718091 + 4483.5395454402) / 15651.640134918) / ((677.22173585833 + 5212.0032560783) / 16426.574667097)
=0.32979681 / 0.35851814
=0.9199

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
=(-343.93353173397 - 48.991705519244 - 308.82470991322) / 15651.640134918
=-0.0448

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.

KE Holdings has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.


KE Holdings Beneish M-Score Related Terms

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KE Holdings Business Description

KE Holdings logo
Traded in Other Exchanges
Address
No. 2 Chuangye Road, Oriental Electronic Technology Building, Haidian District, Beijing, CHN, 100086
KE Holdings Inc is engaged in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. The company through its Beike platform reinvents how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. It operates in three operating segments Existing home transaction services; New home transaction services; and Emerging and other services. The company generates maximum revenue from New home transaction services segment.

KE Holdings Headlines

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