Country Garden Holdings Co (Country Garden Holdings Co) Beneish M-Score : -1.88 (As of Apr. 26, 2024)

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What is Country Garden Holdings Co 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.

Good Sign:

Beneish M-Score -1.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CTRYY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.28 Med: -1.89 Max: -1.28
Current: -1.88

During the past 13 years, the highest Beneish M-Score of Country Garden Holdings Co was -1.28. The lowest was -2.28. And the median was -1.89.

Country Garden Holdings Co Beneish M-Score Historical Data

The historical data trend for Country Garden Holdings Co'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.

Country Garden Holdings Co Beneish M-Score Chart

Country Garden Holdings Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.04

-2.08

-2.28

-2.27

-1.88

Country Garden Holdings Co Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.27	-	-1.88	-

Competitive Comparison of Country Garden Holdings Co's Beneish M-Score

For the Real Estate - Development subindustry, Country Garden Holdings Co'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.

Country Garden Holdings Co's Beneish M-Score Distribution in the Real Estate Industry

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

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

Country Garden Holdings Co 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 Country Garden Holdings Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.228

0.528 * 2.3216

0.404 * 0.9772

0.892 * 0.7517

0.115 * 0.9968

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8319

4.679 * -0.023889

0.327 * 0.9725

-1.88

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was $49,627 Mil.
Revenue was $61,731 Mil.
Gross Profit was $4,717 Mil.
Total Current Assets was $220,474 Mil.
Total Assets was $250,221 Mil.
Property, Plant and Equipment(Net PPE) was $4,354 Mil.
Depreciation, Depletion and Amortization(DDA) was $325 Mil.
Selling, General, & Admin. Expense(SGA) was $2,831 Mil.
Total Current Liabilities was $176,601 Mil.
Long-Term Debt & Capital Lease Obligation was $25,520 Mil.
Net Income was $-868 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $5,109 Mil.

Total Receivables was $53,762 Mil.
Revenue was $82,123 Mil.
Gross Profit was $14,567 Mil.
Total Current Assets was $269,093 Mil.
Total Assets was $305,899 Mil.
Property, Plant and Equipment(Net PPE) was $5,037 Mil.
Depreciation, Depletion and Amortization(DDA) was $375 Mil.
Selling, General, & Admin. Expense(SGA) was $4,527 Mil.
Total Current Liabilities was $216,492 Mil.
Long-Term Debt & Capital Lease Obligation was $37,588 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)
	=	(49627.494 / 61731.142)	/	(53761.795 / 82122.682)
	=	0.80393	/	0.654652
	=	1.228

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)
	=	(14567.064 / 82122.682)	/	(4716.64 / 61731.142)
	=	0.177382	/	0.076406
	=	2.3216

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 - (220474.49 + 4353.888) / 250221.18)	/	(1 - (269093.464 + 5037.288) / 305899.392)
	=	0.101481	/	0.103853
	=	0.9772

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
	=	61731.142	/	82122.682
	=	0.7517

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))
	=	(374.766 / (374.766 + 5037.288))	/	(325.028 / (325.028 + 4353.888))
	=	0.069247	/	0.069467
	=	0.9968

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)
	=	(2830.873 / 61731.142)	/	(4527.028 / 82122.682)
	=	0.045858	/	0.055125
	=	0.8319

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)
	=	((25520.318 + 176600.973) / 250221.18)	/	((37588.118 + 216492.393) / 305899.392)
	=	0.807771	/	0.830602
	=	0.9725

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
	=	(-868.081 - 0	-	5109.371)	/	250221.18
	=	-0.023889

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.

Country Garden Holdings Co has a M-score of -1.88 suggests that the company is unlikely to be a manipulator.

Country Garden Holdings Co Beneish M-Score Related Terms

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Country Garden Holdings Co (Country Garden Holdings Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Country Garden Holdings Co Ltd (OTCPK:CTRYY) » Definitions » Beneish M-Score

Traded in Other Exchanges

CTRYF:USA 02007:Hong Kong DZJ:Germany

Address

No. 1 Country Garden Road, Country Garden Centre, Beijiao Town, Shunde District, Guangdong Province, Foshan, CHN, 528312

Website

https://www.countrygarden.com.cn

Listed in 2007, Country Garden Holdings has been one of the largest China real estate developers in contracted sales with a focus on Tier 3 and lower-tier cities. Property development has represented most of CGH's revenue and earnings, and the firm has tapped into new businesses such as robotics construction and venture capital investment. Following the retirement of founder Yang Guoqiang, Yang Huiyan (daughter of Yang Guoqiang) holds an over 50% stake of the company, while Ping An Life Insurance retains 7.7% equity ownership after the private placement in 2015.