Jason Furniture (Hangzhou) Co (SHSE:603816) Beneish M-Score : -2.94 (As of Apr. 26, 2024)

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What is Jason Furniture (Hangzhou) 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 -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Jason Furniture (Hangzhou) Co's Beneish M-Score or its related term are showing as below:

SHSE:603816' s Beneish M-Score Range Over the Past 10 Years
Min: -3.16 Med: -2.42 Max: -1.21
Current: -2.94

During the past 12 years, the highest Beneish M-Score of Jason Furniture (Hangzhou) Co was -1.21. The lowest was -3.16. And the median was -2.42.

Jason Furniture (Hangzhou) Co Beneish M-Score Historical Data

The historical data trend for Jason Furniture (Hangzhou) 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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Jason Furniture (Hangzhou) Co Beneish M-Score Chart

Jason Furniture (Hangzhou) Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-1.24

-2.75

-2.82

-2.31

-2.94

Jason Furniture (Hangzhou) 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															-2.63	-2.94	-3.16	-3.11	-2.94

Competitive Comparison of Jason Furniture (Hangzhou) Co's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Jason Furniture (Hangzhou) 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.

Jason Furniture (Hangzhou) Co's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Jason Furniture (Hangzhou) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Jason Furniture (Hangzhou) Co's Beneish M-Score falls into.

Jason Furniture (Hangzhou) 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 Jason Furniture (Hangzhou) 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 * 1.0461

0.528 * 0.8824

0.404 * 0.8012

0.892 * 0.9738

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1605

4.679 * -0.059106

0.327 * 1.0943

-2.94

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was ¥1,759 Mil.
Revenue was 5257.879 + 4924.385 + 3953.535 + 4248.413 = ¥18,384 Mil.
Gross Profit was 1775.21 + 1527.053 + 1270.384 + 1514.95 = ¥6,088 Mil.
Total Current Assets was ¥9,189 Mil.
Total Assets was ¥17,670 Mil.
Property, Plant and Equipment(Net PPE) was ¥6,189 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥3,372 Mil.
Total Current Liabilities was ¥7,723 Mil.
Long-Term Debt & Capital Lease Obligation was ¥210 Mil.
Net Income was 577.579 + 523.409 + 400.104 + 408.946 = ¥1,910 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 642.084 + 624.911 + 152.296 + 1535.162 = ¥2,954 Mil.

Total Receivables was ¥1,727 Mil.
Revenue was 4746.037 + 4475.809 + 4540.188 + 5116.822 = ¥18,879 Mil.
Gross Profit was 1426.637 + 1256.146 + 1355.26 + 1478.412 = ¥5,516 Mil.
Total Current Assets was ¥7,492 Mil.
Total Assets was ¥15,316 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,344 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥2,984 Mil.
Total Current Liabilities was ¥5,954 Mil.
Long-Term Debt & Capital Lease Obligation was ¥330 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)
	=	(1758.877 / 18384.212)	/	(1726.601 / 18878.856)
	=	0.095673	/	0.091457
	=	1.0461

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)
	=	(5516.455 / 18878.856)	/	(6087.597 / 18384.212)
	=	0.292203	/	0.331132
	=	0.8824

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 - (9188.717 + 6188.854) / 17670.292)	/	(1 - (7491.946 + 5344.094) / 15316.455)
	=	0.12975	/	0.161944
	=	0.8012

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
	=	18384.212	/	18878.856
	=	0.9738

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 + 5344.094))	/	(0 / (0 + 6188.854))
	=	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)
	=	(3372.481 / 18384.212)	/	(2984.131 / 18878.856)
	=	0.183444	/	0.158067
	=	1.1605

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)
	=	((210.403 + 7723.295) / 17670.292)	/	((330.342 + 5954.055) / 15316.455)
	=	0.448985	/	0.410304
	=	1.0943

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
	=	(1910.038 - 0	-	2954.453)	/	17670.292
	=	-0.059106

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.

Jason Furniture (Hangzhou) Co has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.

Jason Furniture (Hangzhou) Co Beneish M-Score Related Terms

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Jason Furniture (Hangzhou) Co (SHSE:603816) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Jason Furniture (Hangzhou) Co Ltd (SHSE:603816) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No.599-1, Dongning Road, Gujia Building, Jianggan District, Hangzhou, CHN

Website

http://www.kukahome.com

Jason Furniture (Hangzhou) Co Ltd is a China-based company engaged in the home furnishing industry. The group researches, develops, produces and sales home appliances in the living room and bedroom. The product offered by the group includes leather Sofas, Recliner Chairs, Fabric Sofas, Beds, Mattresses, Dining Chairs, Barstools, and others. Geographically, it operates through china however its products are sold in both Chinese and international market.

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