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Hefei Jianghang Aircraft Equipment Co (SHSE:688586) Beneish M-Score : -2.11 (As of Jun. 20, 2024)


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What is Hefei Jianghang Aircraft Equipment 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 -2.11 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hefei Jianghang Aircraft Equipment Co's Beneish M-Score or its related term are showing as below:

SHSE:688586' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Med: -2.28   Max: -1.77
Current: -2.11

During the past 8 years, the highest Beneish M-Score of Hefei Jianghang Aircraft Equipment Co was -1.77. The lowest was -3.23. And the median was -2.28.


Hefei Jianghang Aircraft Equipment Co Beneish M-Score Historical Data

The historical data trend for Hefei Jianghang Aircraft Equipment 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.

* Premium members only.

Hefei Jianghang Aircraft Equipment Co Beneish M-Score Chart

Hefei Jianghang Aircraft Equipment Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.50 -3.19 -2.28 -1.85

Hefei Jianghang Aircraft Equipment 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.27 -2.35 -2.32 -1.85 -2.11

Competitive Comparison of Hefei Jianghang Aircraft Equipment Co's Beneish M-Score

For the Aerospace & Defense subindustry, Hefei Jianghang Aircraft Equipment 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.


Hefei Jianghang Aircraft Equipment Co's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Hefei Jianghang Aircraft Equipment Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hefei Jianghang Aircraft Equipment Co's Beneish M-Score falls into.



Hefei Jianghang Aircraft Equipment 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 Hefei Jianghang Aircraft Equipment Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2211+0.528 * 1.0039+0.404 * 0.9126+0.892 * 1.0575+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9594+4.679 * 0.023069-0.327 * 0.8881
=-2.11

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ¥840 Mil.
Revenue was 308.922 + 303.512 + 276.442 + 328.967 = ¥1,218 Mil.
Gross Profit was 111.874 + 112.286 + 109.55 + 140.853 = ¥475 Mil.
Total Current Assets was ¥2,840 Mil.
Total Assets was ¥3,566 Mil.
Property, Plant and Equipment(Net PPE) was ¥593 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥56 Mil.
Total Current Liabilities was ¥773 Mil.
Long-Term Debt & Capital Lease Obligation was ¥4 Mil.
Net Income was 60.868 + 6.63 + 52.482 + 73.662 = ¥194 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -80.948 + 206.176 + -42.101 + 28.245 = ¥111 Mil.
Total Receivables was ¥651 Mil.
Revenue was 305.175 + 231.947 + 296.658 + 317.801 = ¥1,152 Mil.
Gross Profit was 103.244 + 69.997 + 135.224 + 142.017 = ¥450 Mil.
Total Current Assets was ¥2,823 Mil.
Total Assets was ¥3,561 Mil.
Property, Plant and Equipment(Net PPE) was ¥592 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥56 Mil.
Total Current Liabilities was ¥868 Mil.
Long-Term Debt & Capital Lease Obligation was ¥6 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)
=(840.111 / 1217.843) / (650.56 / 1151.581)
=0.689835 / 0.564928
=1.2211

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)
=(450.482 / 1151.581) / (474.563 / 1217.843)
=0.391186 / 0.389675
=1.0039

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 - (2839.772 + 593.164) / 3566.234) / (1 - (2822.642 + 592.349) / 3560.83)
=0.037378 / 0.040956
=0.9126

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
=1217.843 / 1151.581
=1.0575

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 + 592.349)) / (0 / (0 + 593.164))
=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)
=(56.45 / 1217.843) / (55.639 / 1151.581)
=0.046352 / 0.048315
=0.9594

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)
=((4.035 + 773.271) / 3566.234) / ((6.02 + 867.95) / 3560.83)
=0.217963 / 0.24544
=0.8881

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
=(193.642 - 0 - 111.372) / 3566.234
=0.023069

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.

Hefei Jianghang Aircraft Equipment Co has a M-score of -2.11 suggests that the company is unlikely to be a manipulator.


Hefei Jianghang Aircraft Equipment Co Beneish M-Score Related Terms

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Hefei Jianghang Aircraft Equipment Co (SHSE:688586) Business Description

Traded in Other Exchanges
N/A
Address
No. 35, Yan'an Road, Baohe Industrial Zone, Anhui Province, Hefei, CHN, 230051
Hefei Jianghang Aircraft Equipment Co Ltd is engaged in production of aviation equipments and special refrigeration. The company produces aviation oxygen system, air service oxygen system, aircraft cabin equipment facilities, emergency oxygen supply device, engine oxygen supplement system, inert protection system, aviation fuel tank system, landing gear, aerospace environmental control life support equipment, aerospace individual protective device, ground oxygen protection device, plug-in pod, aviation ground equipment, non-standard testing equipment, non-standard training equipment, oxygen generator, sensitive element, sensor, refrigeration equipment, civil oxygen generator, medical oxygen generator, air purifier, and water purification.
Executives
Li Chun Mu Core technical personnel
Liu Wen Biao Senior management, core technical personnel
Wang Yong Qian senior management
Fang Ling Core technical personnel
Wei Wei Dong Core technical personnel
Deng Zhang Quan Directors, senior managers

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