Zoy Home Furnishing Co (SHSE:603709) Beneish M-Score : -2.13 (As of Dec. 14, 2024)

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What is Zoy Home Furnishing 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 -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SHSE:603709' s Beneish M-Score Range Over the Past 10 Years
Min: -7.89 Med: -2.15 Max: -0.63
Current: -2.13

During the past 11 years, the highest Beneish M-Score of Zoy Home Furnishing Co was -0.63. The lowest was -7.89. And the median was -2.15.

Zoy Home Furnishing Co Beneish M-Score Historical Data

The historical data trend for Zoy Home Furnishing 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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Zoy Home Furnishing Co Beneish M-Score Chart

Zoy Home Furnishing Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.80

-1.95

-2.58

-2.77

-2.20

Zoy Home Furnishing Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.69	-2.20	-2.30	-1.82	-2.13

Competitive Comparison of Zoy Home Furnishing Co's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Zoy Home Furnishing 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.

Zoy Home Furnishing Co's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Zoy Home Furnishing Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Zoy Home Furnishing Co's Beneish M-Score falls into.

Zoy Home Furnishing 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 Zoy Home Furnishing 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 * 0.8613

0.528 * 1.0691

0.404 * 0.923

0.892 * 1.5815

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0428

4.679 * 0.00399

0.327 * 1.1693

-2.13

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ¥224 Mil.
Revenue was 412.78 + 365.874 + 347.273 + 353.22 = ¥1,479 Mil.
Gross Profit was 81.604 + 76.198 + 88.788 + 86.851 = ¥333 Mil.
Total Current Assets was ¥647 Mil.
Total Assets was ¥1,440 Mil.
Property, Plant and Equipment(Net PPE) was ¥577 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥218 Mil.
Total Current Liabilities was ¥701 Mil.
Long-Term Debt & Capital Lease Obligation was ¥154 Mil.
Net Income was -0.591 + -2.983 + 6.058 + -8.789 = ¥-6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -10.822 + -34.627 + -14.968 + 48.367 = ¥-12 Mil.

Total Receivables was ¥164 Mil.
Revenue was 290.526 + 250.215 + 207.325 + 187.202 = ¥935 Mil.
Gross Profit was 73.567 + 61.609 + 56.855 + 33.37 = ¥225 Mil.
Total Current Assets was ¥484 Mil.
Total Assets was ¥1,248 Mil.
Property, Plant and Equipment(Net PPE) was ¥561 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥132 Mil.
Total Current Liabilities was ¥407 Mil.
Long-Term Debt & Capital Lease Obligation was ¥227 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)
	=	(223.741 / 1479.147)	/	(164.257 / 935.268)
	=	0.151264	/	0.175626
	=	0.8613

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)
	=	(225.401 / 935.268)	/	(333.441 / 1479.147)
	=	0.241002	/	0.225428
	=	1.0691

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 - (646.579 + 576.671) / 1439.817)	/	(1 - (483.508 + 560.713) / 1247.523)
	=	0.150413	/	0.162965
	=	0.923

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
	=	1479.147	/	935.268
	=	1.5815

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 + 560.713))	/	(0 / (0 + 576.671))
	=	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)
	=	(218.306 / 1479.147)	/	(132.368 / 935.268)
	=	0.147589	/	0.141529
	=	1.0428

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)
	=	((154.384 + 700.796) / 1439.817)	/	((227.143 + 406.545) / 1247.523)
	=	0.59395	/	0.507957
	=	1.1693

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
	=	(-6.305 - 0	-	-12.05)	/	1439.817
	=	0.00399

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.

Zoy Home Furnishing Co has a M-score of -2.13 suggests that the company is unlikely to be a manipulator.

Zoy Home Furnishing Co Beneish M-Score Related Terms

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Zoy Home Furnishing Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Zoy Home Furnishing Co Ltd (SHSE:603709) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Tangpu Industrial Park, Anji County, Zhejiang Province, Huzhou, CHN, 313300

Website

http://www.zoy-living.com

Zoy Home Furnishing Co Ltd manufactures and markets furniture. The Company designs, produces, and sells ordinary and ergonomic sofas, and other related products. The company's products mainly include functional sofas, fixed sofas and single lounge chairs and others, such as manual function sofa, electric function sofa, armrest push back sofas, elderly chairs, household and commercial sofas and household and commercial single leisure chairs.

Executives

Zhu Zhou Ting	Supervisors
Zhu Huang Qiang	Directors, senior managers
Cao Yong	Directors, senior managers
Zhang Yun	Directors, senior managers

Zoy Home Furnishing Co Headlines

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