China Shipbuilding Industry (SHSE:601989) Beneish M-Score : -2.64 (As of Apr. 28, 2024)

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What is China Shipbuilding Industry 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SHSE:601989' s Beneish M-Score Range Over the Past 10 Years
Min: -15.05 Med: -2.26 Max: -0.85
Current: -2.64

During the past 13 years, the highest Beneish M-Score of China Shipbuilding Industry was -0.85. The lowest was -15.05. And the median was -2.26.

China Shipbuilding Industry Beneish M-Score Historical Data

The historical data trend for China Shipbuilding Industry'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 Shipbuilding Industry Beneish M-Score Chart

China Shipbuilding Industry Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.10

-1.76

-3.55

-2.84

-2.32

China Shipbuilding Industry 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															-2.14	-2.32	-2.30	-2.40	-2.64

Competitive Comparison of China Shipbuilding Industry's Beneish M-Score

For the Aerospace & Defense subindustry, China Shipbuilding Industry'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 Shipbuilding Industry's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, China Shipbuilding Industry's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Shipbuilding Industry's Beneish M-Score falls into.

China Shipbuilding Industry 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 Shipbuilding Industry 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 * 0.9182

0.528 * 0.7122

0.404 * 0.9716

0.892 * 1.1929

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4734

4.679 * -0.035217

0.327 * 1.0597

-2.64

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was ¥17,231 Mil.
Revenue was 13435.87 + 10042.638 + 6823.374 + 18193.076 = ¥48,495 Mil.
Gross Profit was 907.586 + 657.866 + 1073.531 + 2014.818 = ¥4,654 Mil.
Total Current Assets was ¥145,139 Mil.
Total Assets was ¥201,039 Mil.
Property, Plant and Equipment(Net PPE) was ¥35,284 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥1,152 Mil.
Total Current Liabilities was ¥89,870 Mil.
Long-Term Debt & Capital Lease Obligation was ¥19,041 Mil.
Net Income was -302.96 + 125.699 + 66.424 + -962.156 = ¥-1,073 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 9306.192 + -1810.455 + -4743.772 + 3254.922 = ¥6,007 Mil.

Total Receivables was ¥15,732 Mil.
Revenue was 11026.976 + 8820.63 + 6114.253 + 14692.291 = ¥40,654 Mil.
Gross Profit was 596.284 + 140.031 + 689.065 + 1353.25 = ¥2,779 Mil.
Total Current Assets was ¥135,048 Mil.
Total Assets was ¥190,357 Mil.
Property, Plant and Equipment(Net PPE) was ¥35,218 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥2,040 Mil.
Total Current Liabilities was ¥76,696 Mil.
Long-Term Debt & Capital Lease Obligation was ¥20,623 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)
	=	(17230.831 / 48494.958)	/	(15732.019 / 40654.15)
	=	0.355312	/	0.386972
	=	0.9182

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)
	=	(2778.63 / 40654.15)	/	(4653.801 / 48494.958)
	=	0.068348	/	0.095965
	=	0.7122

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 - (145139.471 + 35284.235) / 201038.648)	/	(1 - (135047.992 + 35218.258) / 190357.21)
	=	0.102542	/	0.105543
	=	0.9716

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
	=	48494.958	/	40654.15
	=	1.1929

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 + 35218.258))	/	(0 / (0 + 35284.235))
	=	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)
	=	(1152.101 / 48494.958)	/	(2040.392 / 40654.15)
	=	0.023757	/	0.050189
	=	0.4734

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)
	=	((19041.362 + 89870.084) / 201038.648)	/	((20623.345 + 76696) / 190357.21)
	=	0.541744	/	0.511246
	=	1.0597

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
	=	(-1072.993 - 0	-	6006.887)	/	201038.648
	=	-0.035217

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 Shipbuilding Industry has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.

China Shipbuilding Industry Beneish M-Score Related Terms

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China Shipbuilding Industry (SHSE:601989) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » China Shipbuilding Industry Corp (SHSE:601989) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

No. 72, Hunan Road, Kunming, Haidian District, Beijing, CHN, 100097

Website

http://www.csicl.com.cn

China Shipbuilding Industry Corp is engaged in the designing, manufacturing and repairing of ships. The company also manufactures marine defense and marine development equipment, marine transportation equipment, deep-sea equipment and ship repair and modification, ship supporting and electromechanical equipment, military-civilian integration strategy emerging industries. The main developer and supplier of domestic naval equipment is responsible for the manufacturing of naval main battle equipment and core ancillary equipment such as aircraft carriers, surface ships, conventional submarines, and underwater weapons.

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