China Petroleum & Chemical (SHSE:600028) Beneish M-Score

: -2.30 (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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China Petroleum & Chemical's Beneish M-Score or its related term are showing as below:

SHSE:600028' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63 Med: -2.71 Max: -2.03
Current: -2.3

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical was -2.03. The lowest was -3.63. And the median was -2.71.

China Petroleum & Chemical Beneish M-Score Historical Data

The historical data trend for China Petroleum & Chemical'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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China Petroleum & Chemical Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.71

-2.91

-2.98

-2.77

-2.40

China Petroleum & Chemical Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-2.71	-2.40	-2.57	-2.38	-2.30

Competitive Comparison

For the Oil & Gas Integrated subindustry, China Petroleum & Chemical'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.

China Petroleum & Chemical Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, China Petroleum & Chemical's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Petroleum & Chemical's Beneish M-Score falls into.

China Petroleum & Chemical 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 China Petroleum & Chemical 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 * 1.3053

0.528 * 1.126

0.404 * 1.0255

0.892 * 1.0446

0.115 * 1.0855

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9545

4.679 * -0.04606

0.327 * 0.9931

-2.28

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was ¥89,706 Mil.
Revenue was 876259 + 802351 + 791331 + 864846 = ¥3,334,787 Mil.
Gross Profit was 150041 + 122945 + 132616 + 114346 = ¥519,948 Mil.
Total Current Assets was ¥623,986 Mil.
Total Assets was ¥2,084,435 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,122,448 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥111,900 Mil.
Selling, General, & Admin. Expense(SGA) was ¥163,901 Mil.
Total Current Liabilities was ¥694,317 Mil.
Long-Term Debt & Capital Lease Obligation was ¥364,248 Mil.
Net Income was 17938 + 15382 + 20740 + 8284 = ¥62,344 Mil.
Non Operating Income was 3259 + 2170 + 1675 + -4084 = ¥3,020 Mil.
Cash Flow from Operations was 70747 + 45959 + -18397 + 57025 = ¥155,334 Mil.

Total Receivables was ¥65,796 Mil.
Revenue was 841196 + 840740 + 771386 + 739193 = ¥3,192,515 Mil.
Gross Profit was 112855 + 139749 + 156556 + 151327 = ¥560,487 Mil.
Total Current Assets was ¥677,395 Mil.
Total Assets was ¥2,050,519 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,048,884 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥114,481 Mil.
Selling, General, & Admin. Expense(SGA) was ¥164,394 Mil.
Total Current Liabilities was ¥784,893 Mil.
Long-Term Debt & Capital Lease Obligation was ¥263,653 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)
	=	(89706 / 3334787)	/	(65796 / 3192515)
	=	0.0269	/	0.020609
	=	1.3053

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)
	=	(560487 / 3192515)	/	(519948 / 3334787)
	=	0.175563	/	0.155916
	=	1.126

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 - (623986 + 1122448) / 2084435)	/	(1 - (677395 + 1048884) / 2050519)
	=	0.162155	/	0.158126
	=	1.0255

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
	=	3334787	/	3192515
	=	1.0446

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))
	=	(114481 / (114481 + 1048884))	/	(111900 / (111900 + 1122448))
	=	0.098405	/	0.090655
	=	1.0855

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)
	=	(163901 / 3334787)	/	(164394 / 3192515)
	=	0.049149	/	0.051494
	=	0.9545

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)
	=	((364248 + 694317) / 2084435)	/	((263653 + 784893) / 2050519)
	=	0.507843	/	0.511356
	=	0.9931

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
	=	(62344 - 3020	-	155334)	/	2084435
	=	-0.04606

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.

China Petroleum & Chemical has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.

China Petroleum & Chemical Beneish M-Score Related Terms

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China Petroleum & Chemical (SHSE:600028) Business Description

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SNPMF:USA 00386:Hong Kong CHU:Germany

Address

No. 22 Chaoyangmen North Street, Chaoyang District, Beijing, CHN, 100728

Website

http://www.sinopec.com

China Petroleum & Chemical, or Sinopec, is one of China's national oil companies and one of Asian's largest integrated oil companies in terms of revenue. Its income is derived primarily from refining and marketing of oil products and petrochemical production. Sinopec has China's largest petrol station network with over 30,000 stations and enjoys significant market share in petrochemicals. Established in 2000 by China Petrochemical Corporation, a state-owned enterprise and majority shareholder, the company also owns oil and gas assets in Shandong and Sichuan provinces. It has a smaller global upstream presence than peers PetroChina and CNOOC. In 2022, Sinopec's production of oil and gas equivalent was 488.99 million barrels. The firm also processed 242 million metric tons of crude oil.

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