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Kweichow Moutai Co Beneish M-Score

: -3.44 (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 -3.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SHSE:600519' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Med: -2.35   Max: 3733.15
Current: -3.44

-3.75
3733.15

During the past 13 years, the highest Beneish M-Score of Kweichow Moutai Co was 3733.15. The lowest was -3.75. And the median was -2.35.


Kweichow Moutai Co Beneish M-Score Historical Data

The historical data trend for Kweichow Moutai 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.

Kweichow Moutai Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,708.02 -2.82 -2.44 -1.20 -2.40

Kweichow Moutai Co Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -1.12 -2.40 -2.43 -2.79 -3.44

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Kweichow Moutai 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.

   

Kweichow Moutai Co Beneish M-Score Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Kweichow Moutai Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kweichow Moutai Co's Beneish M-Score falls into.



Kweichow Moutai 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 Kweichow Moutai Co 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 * 0.2511+0.528 * 0.9997+0.404 * 1.1481+0.892 * 1.1112+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5314+4.679 * -0.0586-0.327 * 1.1856
=-3.44

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was CNY540 Mil.
Revenue was 26331.572 + 22656.847 + 28064.736 + 28418.364 = CNY105,472 Mil.
Gross Profit was 23940.014 + 20654.741 + 25759.582 + 26063.171 = CNY96,418 Mil.
Total Current Assets was CNY192,577 Mil.
Total Assets was CNY224,702 Mil.
Property, Plant and Equipment(Net PPE) was CNY19,855 Mil.
Depreciation, Depletion and Amortization(DDA) was CNY0 Mil.
Selling, General, & Admin. Expense(SGA) was CNY6,562 Mil.
Total Current Liabilities was CNY43,447 Mil.
Long-Term Debt & Capital Lease Obligation was CNY439 Mil.
Net Income was 12612.189 + 10699.523 + 13954.462 + 12870.181 = CNY50,136 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = CNY0 Mil.
Cash Flow from Operations was 15032.827 + 23204.364 + -1484.893 + 26558.066 = CNY63,310 Mil.
Accounts Receivable was CNY1,936 Mil.
Revenue was 23940.506 + 20335.879 + 25298.492 + 25345.391 = CNY94,920 Mil.
Gross Profit was 21835.88 + 18594.058 + 23235.001 + 23083.882 = CNY86,749 Mil.
Total Current Assets was CNY157,489 Mil.
Total Assets was CNY184,579 Mil.
Property, Plant and Equipment(Net PPE) was CNY18,310 Mil.
Depreciation, Depletion and Amortization(DDA) was CNY0 Mil.
Selling, General, & Admin. Expense(SGA) was CNY3,857 Mil.
Total Current Liabilities was CNY30,406 Mil.
Long-Term Debt & Capital Lease Obligation was CNY0 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(540.124 / 105471.519) / (1935.656 / 94920.268)
=0.00512104 / 0.02039244
=0.2511

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)
=(86748.821 / 94920.268) / (96417.508 / 105471.519)
=0.91391252 / 0.91415682
=0.9997

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 - (192577.235 + 19854.698) / 224702.254) / (1 - (157489.286 + 18310.43) / 184579.197)
=0.05460702 / 0.04756485
=1.1481

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
=105471.519 / 94920.268
=1.1112

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 + 18310.43)) / (0 / (0 + 19854.698))
=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)
=(6562.482 / 105471.519) / (3856.59 / 94920.268)
=0.06222042 / 0.04062978
=1.5314

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)
=((439.073 + 43447.344) / 224702.254) / ((0 + 30405.726) / 184579.197)
=0.1953092 / 0.16472997
=1.1856

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
=(50136.355 - 0 - 63310.364) / 224702.254
=-0.0586

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.

Kweichow Moutai Co has a M-score of -3.44 suggests that the company is unlikely to be a manipulator.


Kweichow Moutai Co Beneish M-Score Related Terms

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Kweichow Moutai Co Business Description

Kweichow Moutai Co logo
Industry
Traded in Other Exchanges
N/A
Address
Guizhou Province, Maotai Town, Renhuai, CHN, 564501
Kweichow Moutai is one of China's largest liquor producers. The company was established in 1951 and its headquarters is located in Moutai Town, Guizhou province, southwest China. Its core product, 53-degree Feitian Moutai, is known as China's national drink and has been consumed during many high-profile historical and political events. Given its historical and cultural significance, the company achieves the industry's highest retail prices and profit margins.

Kweichow Moutai Co Headlines

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