Chongqing Zaisheng Technology Co (SHSE:603601) Beneish M-Score : -2.30 (As of Apr. 25, 2024)

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What is Chongqing Zaisheng Technology 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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SHSE:603601' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.11 Max: -0.25
Current: -2.3

During the past 12 years, the highest Beneish M-Score of Chongqing Zaisheng Technology Co was -0.25. The lowest was -3.19. And the median was -2.11.

Chongqing Zaisheng Technology Co Beneish M-Score Historical Data

The historical data trend for Chongqing Zaisheng Technology 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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Chongqing Zaisheng Technology Co Beneish M-Score Chart

Chongqing Zaisheng Technology Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-1.81

-2.60

-1.92

-2.17

-2.79

Chongqing Zaisheng Technology Co 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															-2.83	-2.79	-2.54	-2.57	-2.30

Competitive Comparison of Chongqing Zaisheng Technology Co's Beneish M-Score

For the Specialty Chemicals subindustry, Chongqing Zaisheng Technology 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.

Chongqing Zaisheng Technology Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Chongqing Zaisheng Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Chongqing Zaisheng Technology Co's Beneish M-Score falls into.

Chongqing Zaisheng Technology 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 Chongqing Zaisheng Technology 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 * 1.1494

0.528 * 1.173

0.404 * 0.9108

0.892 * 1.0145

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0068

4.679 * -0.001637

0.327 * 1.0606

-2.30

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was ¥933 Mil.
Revenue was 443.323 + 444.48 + 377.379 + 420.46 = ¥1,686 Mil.
Gross Profit was 114.938 + 112.004 + 86.208 + 89.245 = ¥402 Mil.
Total Current Assets was ¥1,780 Mil.
Total Assets was ¥3,379 Mil.
Property, Plant and Equipment(Net PPE) was ¥982 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥90 Mil.
Total Current Liabilities was ¥427 Mil.
Long-Term Debt & Capital Lease Obligation was ¥492 Mil.
Net Income was 35.999 + 47.996 + 33.278 + 6.829 = ¥124 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 6.593 + 51.751 + 3.296 + 67.993 = ¥130 Mil.

Total Receivables was ¥800 Mil.
Revenue was 407.519 + 422.245 + 368.168 + 463.541 = ¥1,661 Mil.
Gross Profit was 98.585 + 110.87 + 118.702 + 137.073 = ¥465 Mil.
Total Current Assets was ¥1,366 Mil.
Total Assets was ¥2,989 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,023 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥89 Mil.
Total Current Liabilities was ¥698 Mil.
Long-Term Debt & Capital Lease Obligation was ¥68 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)
	=	(932.832 / 1685.642)	/	(799.946 / 1661.473)
	=	0.553399	/	0.481468
	=	1.1494

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)
	=	(465.23 / 1661.473)	/	(402.395 / 1685.642)
	=	0.280011	/	0.238719
	=	1.173

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 - (1779.804 + 981.54) / 3379.377)	/	(1 - (1365.753 + 1023.335) / 2989.357)
	=	0.182884	/	0.200802
	=	0.9108

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
	=	1685.642	/	1661.473
	=	1.0145

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 + 1023.335))	/	(0 / (0 + 981.54))
	=	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)
	=	(90.47 / 1685.642)	/	(88.568 / 1661.473)
	=	0.053671	/	0.053307
	=	1.0068

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)
	=	((491.988 + 426.958) / 3379.377)	/	((68.105 + 698.334) / 2989.357)
	=	0.271928	/	0.256389
	=	1.0606

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
	=	(124.102 - 0	-	129.633)	/	3379.377
	=	-0.001637

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.

Chongqing Zaisheng Technology Co has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.

Chongqing Zaisheng Technology Co Beneish M-Score Related Terms

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Chongqing Zaisheng Technology Co (SHSE:603601) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Chongqing Zaisheng Technology Co Ltd (SHSE:603601) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Liangang Avenue, Huixing Street, Building 1, No. 197, Yubei District, Chongqing, CHN, 401120

Website

http://www.cqzskj.com

Chongqing Zaisheng Technology Co Ltd is engaged in researching, manufacturing, and marketing of glass microfiber products which are used in the purification and energy-saving field. The company's core products are profile include Glass Microfiber Filter and Fiberglass VIP Core Material. Its other products are AGM Separator, Air Laid Cotton, Dry Method VIP, Glass fiber filter, and others.

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