Yinchuan Xinhua Commercial (Group) Co (SHSE:600785) Beneish M-Score : -2.56 (As of Apr. 30, 2024)

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What is Yinchuan Xinhua Commercial (Group) 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Yinchuan Xinhua Commercial (Group) Co's Beneish M-Score or its related term are showing as below:

SHSE:600785' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.66 Max: -1.99
Current: -2.56

During the past 13 years, the highest Beneish M-Score of Yinchuan Xinhua Commercial (Group) Co was -1.99. The lowest was -3.19. And the median was -2.66.

Yinchuan Xinhua Commercial (Group) Co Beneish M-Score Historical Data

The historical data trend for Yinchuan Xinhua Commercial (Group) 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.

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Yinchuan Xinhua Commercial (Group) Co Beneish M-Score Chart

Yinchuan Xinhua Commercial (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.37

-2.78

-2.97

-2.70

-2.57

Yinchuan Xinhua Commercial (Group) Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.82	-2.81	-2.88	-2.57	-2.56

Competitive Comparison of Yinchuan Xinhua Commercial (Group) Co's Beneish M-Score

For the Department Stores subindustry, Yinchuan Xinhua Commercial (Group) 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.

Yinchuan Xinhua Commercial (Group) Co's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Yinchuan Xinhua Commercial (Group) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Yinchuan Xinhua Commercial (Group) Co's Beneish M-Score falls into.

Yinchuan Xinhua Commercial (Group) 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 Yinchuan Xinhua Commercial (Group) 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 * 1.179

0.528 * 0.9778

0.404 * 1.2113

0.892 * 1.0175

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9702

4.679 * -0.076208

0.327 * 0.9327

-2.56

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥419 Mil.
Revenue was 1884.269 + 1414.732 + 1438.761 + 1370.373 = ¥6,108 Mil.
Gross Profit was 502.553 + 357.208 + 405.167 + 323.872 = ¥1,589 Mil.
Total Current Assets was ¥1,856 Mil.
Total Assets was ¥8,679 Mil.
Property, Plant and Equipment(Net PPE) was ¥4,658 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥1,088 Mil.
Total Current Liabilities was ¥3,579 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2,563 Mil.
Net Income was 81.862 + -2.082 + 36.453 + 17.91 = ¥134 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 209.601 + 173.418 + 331.544 + 80.962 = ¥796 Mil.

Total Receivables was ¥349 Mil.
Revenue was 1841.562 + 1311.298 + 1434.467 + 1415.546 = ¥6,003 Mil.
Gross Profit was 536.788 + 277.232 + 390.134 + 322.65 = ¥1,527 Mil.
Total Current Assets was ¥2,089 Mil.
Total Assets was ¥8,186 Mil.
Property, Plant and Equipment(Net PPE) was ¥4,411 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥1,102 Mil.
Total Current Liabilities was ¥3,550 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2,661 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)
	=	(418.891 / 6108.135)	/	(349.158 / 6002.873)
	=	0.068579	/	0.058165
	=	1.179

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)
	=	(1526.804 / 6002.873)	/	(1588.8 / 6108.135)
	=	0.254346	/	0.260112
	=	0.9778

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 - (1855.602 + 4657.537) / 8678.618)	/	(1 - (2088.555 + 4411.242) / 8186.015)
	=	0.249519	/	0.205988
	=	1.2113

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
	=	6108.135	/	6002.873
	=	1.0175

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 + 4411.242))	/	(0 / (0 + 4657.537))
	=	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)
	=	(1087.747 / 6108.135)	/	(1101.831 / 6002.873)
	=	0.178082	/	0.183551
	=	0.9702

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)
	=	((2562.54 + 3578.664) / 8678.618)	/	((2660.792 + 3549.626) / 8186.015)
	=	0.707625	/	0.758662
	=	0.9327

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
	=	(134.143 - 0	-	795.525)	/	8678.618
	=	-0.076208

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.

Yinchuan Xinhua Commercial (Group) Co has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Yinchuan Xinhua Commercial (Group) Co Beneish M-Score Related Terms

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Yinchuan Xinhua Commercial (Group) Co (SHSE:600785) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Yinchuan Xinhua Commercial (Group) Co Ltd (SHSE:600785) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No. 97 Xinhua East Street, Xingqing District, Ningxia Hui Autonomous Region, Yinchuan, CHN, 750001

Website

http://www.xhbh.com.cn

Yinchuan Xinhua Commercial (Group) Co Ltd is a China-based company engaged in the operation of department stores, as well as the delivery of goods, household appliances, and wholesale products.

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