Dadi Early-Childhood Education Group (ROCO:8437) Beneish M-Score : -2.57 (As of Apr. 03, 2025)

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What is Dadi Early-Childhood Education Group 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 -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Dadi Early-Childhood Education Group's Beneish M-Score or its related term are showing as below:

ROCO:8437' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9 Med: -2.45 Max: -1.42
Current: -2.57

During the past 12 years, the highest Beneish M-Score of Dadi Early-Childhood Education Group was -1.42. The lowest was -2.90. And the median was -2.45.

Dadi Early-Childhood Education Group Beneish M-Score Historical Data

The historical data trend for Dadi Early-Childhood Education Group'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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Dadi Early-Childhood Education Group Beneish M-Score Chart

Dadi Early-Childhood Education Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-1.42

-2.75

-2.22

-2.90

-2.57

Dadi Early-Childhood Education Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.90	-2.82	-2.86	-3.00	-2.57

Competitive Comparison of Dadi Early-Childhood Education Group's Beneish M-Score

For the Education & Training Services subindustry, Dadi Early-Childhood Education Group'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.

Dadi Early-Childhood Education Group's Beneish M-Score Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Dadi Early-Childhood Education Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Dadi Early-Childhood Education Group's Beneish M-Score falls into.

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Dadi Early-Childhood Education Group 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 Dadi Early-Childhood Education Group 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 * 1.3219

0.528 * 1.1297

0.404 * 1.064

0.892 * 0.7888

0.115 * 0.4866

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3904

4.679 * -0.050139

0.327 * 0.7846

-2.57

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was NT$332.7 Mil.
Revenue was 82.15 + 80.899 + 68.53 + 80.637 = NT$312.2 Mil.
Gross Profit was 63.658 + 41.266 + 36.711 + 44.465 = NT$186.1 Mil.
Total Current Assets was NT$1,271.1 Mil.
Total Assets was NT$3,025.4 Mil.
Property, Plant and Equipment(Net PPE) was NT$78.3 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$15.3 Mil.
Selling, General, & Admin. Expense(SGA) was NT$126.3 Mil.
Total Current Liabilities was NT$507.0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$24.0 Mil.
Net Income was 34.992 + 14.595 + -18.004 + -16.871 = NT$14.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0.0 Mil.
Cash Flow from Operations was 76.944 + 30.422 + 41.225 + 17.811 = NT$166.4 Mil.

Total Receivables was NT$319.1 Mil.
Revenue was 88.241 + 133.421 + 90.959 + 83.211 = NT$395.8 Mil.
Gross Profit was 75.249 + 73.631 + 57.259 + 60.41 = NT$266.5 Mil.
Total Current Assets was NT$1,342.0 Mil.
Total Assets was NT$3,180.3 Mil.
Property, Plant and Equipment(Net PPE) was NT$182.4 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$15.8 Mil.
Selling, General, & Admin. Expense(SGA) was NT$115.2 Mil.
Total Current Liabilities was NT$666.9 Mil.
Long-Term Debt & Capital Lease Obligation was NT$44.7 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)
	=	(332.729 / 312.216)	/	(319.118 / 395.832)
	=	1.065701	/	0.806196
	=	1.3219

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)
	=	(266.549 / 395.832)	/	(186.1 / 312.216)
	=	0.673389	/	0.596062
	=	1.1297

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 - (1271.118 + 78.286) / 3025.415)	/	(1 - (1341.961 + 182.424) / 3180.29)
	=	0.553977	/	0.520677
	=	1.064

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
	=	312.216	/	395.832
	=	0.7888

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))
	=	(15.769 / (15.769 + 182.424))	/	(15.304 / (15.304 + 78.286))
	=	0.079564	/	0.163522
	=	0.4866

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)
	=	(126.288 / 312.216)	/	(115.153 / 395.832)
	=	0.404489	/	0.290914
	=	1.3904

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)
	=	((24.021 + 507.044) / 3025.415)	/	((44.65 + 666.878) / 3180.29)
	=	0.175535	/	0.223731
	=	0.7846

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
	=	(14.712 - 0	-	166.402)	/	3025.415
	=	-0.050139

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.

Dadi Early-Childhood Education Group has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.

Dadi Early-Childhood Education Group Beneish M-Score Related Terms

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Dadi Early-Childhood Education Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Dadi Early-Childhood Education Group Ltd (ROCO:8437) » Definitions » Beneish M-Score

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Address

190 Elgin Avenue, George Town, Grand Cayman, CYM, KY 1-9005

Website

http://www.edudadi.com

Dadi Early-Childhood Education Group Ltd operates in the early childhood education industry chain, with a consultancy service as its main business model. It has three operating segments: Consultation services, Early childhood education materials, Software and Others. The company generates maximum key revenue from the Early childhood education materials and Consultation services segment. It provides a series of preschool education services such as campus development, engineering decoration, curriculum design, teaching aids, preschool supplies, and campus software to kindergartens. Geographically, it derives a majority of revenue from Mainland China.

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