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Fortune Valley Treasures Beneish M-Score

: -1.39 (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.

Warning Sign:

Beneish M-Score -1.39 higher than -1.78, which implies that the company might have manipulated its financial results.

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

FVTI' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Med: -1.31   Max: 7.23
Current: -1.39

During the past 7 years, the highest Beneish M-Score of Fortune Valley Treasures was 7.23. The lowest was -10000000.00. And the median was -1.31.


Fortune Valley Treasures Beneish M-Score Historical Data

The historical data trend for Fortune Valley Treasures'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.

Fortune Valley Treasures Annual Data
Trend Aug15 Aug16 Aug17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only - 7.23 -6.70 - -1.47

Fortune Valley Treasures Quarterly Data
May17 Aug17 Dec17 Mar18 Jun18 Sep18 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10,000,000.00 - -10,000,000.00 -1.47 -1.39

Competitive Comparison

For the Specialty Retail subindustry, Fortune Valley Treasures'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.

   

Fortune Valley Treasures Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Fortune Valley Treasures's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Fortune Valley Treasures's Beneish M-Score falls into.



Fortune Valley Treasures 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 Fortune Valley Treasures 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 * 1.2964+0.528 * 1.1655+0.404 * 1.0177+0.892 * 1.1525+0.115 * 1.0186
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4874+4.679 * 0.1198-0.327 * 0.6714
=-1.39

* 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 $1.91 Mil.
Revenue was 1.262 + 2.547 + 2.005 + 1.825 = $7.64 Mil.
Gross Profit was 0.743 + 1.29 + 1.13 + 1.028 = $4.19 Mil.
Total Current Assets was $4.84 Mil.
Total Assets was $11.52 Mil.
Property, Plant and Equipment(Net PPE) was $0.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.89 Mil.
Selling, General, & Admin. Expense(SGA) was $2.22 Mil.
Total Current Liabilities was $1.41 Mil.
Long-Term Debt & Capital Lease Obligation was $0.47 Mil.
Net Income was 0.149 + 0.67 + 0.39 + 0.414 = $1.62 Mil.
Non Operating Income was 0.006 + 0.05 + 0.002 + 0 = $0.06 Mil.
Cash Flow from Operations was 0.133 + 0.255 + -0.023 + -0.181 = $0.18 Mil.
Total Receivables was $1.28 Mil.
Revenue was 1.644 + 4.631 + 0.284 + 0.069 = $6.63 Mil.
Gross Profit was 0.914 + 3.257 + 0.038 + 0.029 = $4.24 Mil.
Total Current Assets was $4.48 Mil.
Total Assets was $9.97 Mil.
Property, Plant and Equipment(Net PPE) was $0.29 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.48 Mil.
Selling, General, & Admin. Expense(SGA) was $1.30 Mil.
Total Current Liabilities was $2.04 Mil.
Long-Term Debt & Capital Lease Obligation was $0.37 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)
=(1.908 / 7.639) / (1.277 / 6.628)
=0.24977091 / 0.19266747
=1.2964

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)
=(4.238 / 6.628) / (4.191 / 7.639)
=0.63940857 / 0.54863202
=1.1655

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 - (4.836 + 0.564) / 11.523) / (1 - (4.478 + 0.288) / 9.973)
=0.53137204 / 0.5221097
=1.0177

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
=7.639 / 6.628
=1.1525

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))
=(0.478 / (0.478 + 0.288)) / (0.892 / (0.892 + 0.564))
=0.62402089 / 0.61263736
=1.0186

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)
=(2.22 / 7.639) / (1.295 / 6.628)
=0.29061395 / 0.19538322
=1.4874

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)
=((0.467 + 1.405) / 11.523) / ((0.372 + 2.041) / 9.973)
=0.16245769 / 0.24195327
=0.6714

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
=(1.623 - 0.058 - 0.184) / 11.523
=0.1198

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.

Fortune Valley Treasures has a M-score of -1.39 signals that the company is likely to be a manipulator.


Fortune Valley Treasures Beneish M-Score Related Terms

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Fortune Valley Treasures Business Description

Fortune Valley Treasures logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 445310 SIC : 5921
Traded in Other Exchanges
N/A
Address
Qiaoxiang Road, Shahe Street, 13th Floor, Building B1, Wisdom Plaza, Nanshan District, Guangdong, Shenzhen, CHN, 518000
Fortune Valley Treasures Inc is engaged in operations of wholesale distribution and retail sales of food and beverage products in the People's Republic of China. The company is into acquiring businesses that are into food, beverage, and alcohol industries. Its products include a variety of wines, such as dry red wine, dry white wine, rose wine, and sweet wine, and other products. Its products are sold to retailers, such as wine shops, convenience stores, and supermarkets.
Executives
Lin Kaihong director, officer: CFO, Treasurer, Director NO. 10 OF TUANJIE 2ND ROAD BEICE, HUMEN DONGGUAN, GUANGDONG F4 518000
Shen Xinlong director, 10 percent owner, officer: CEO, CFO 19F, LIANHE TOWER, 1069 NANHAI AVE, NANSHAN DISTRICT SHENZHEN F4 518000

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