AviChina Industry & Technology Co (STU:AVT) Beneish M-Score : -2.08 (As of Dec. 14, 2024)

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What is AviChina Industry & 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 -2.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:AVT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.57 Med: -2.25 Max: -2.01
Current: -2.08

During the past 13 years, the highest Beneish M-Score of AviChina Industry & Technology Co was -2.01. The lowest was -2.57. And the median was -2.25.

AviChina Industry & Technology Co Beneish M-Score Historical Data

The historical data trend for AviChina Industry & 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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AviChina Industry & Technology Co Beneish M-Score Chart

AviChina Industry & Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.57

-2.01

-2.14

-2.53

-2.08

AviChina Industry & Technology Co Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.53	-	-2.08	-

Competitive Comparison of AviChina Industry & Technology Co's Beneish M-Score

For the Aerospace & Defense subindustry, AviChina Industry & 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.

AviChina Industry & Technology Co's Beneish M-Score Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where AviChina Industry & Technology Co's Beneish M-Score falls into.

AviChina Industry & 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 AviChina Industry & 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 * 1.0972

0.528 * 0.9501

0.404 * 0.9683

0.892 * 1.0203

0.115 * 1.0447

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.075

4.679 * 0.058222

0.327 * 0.9007

-2.11

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €7,227 Mil.
Revenue was €10,881 Mil.
Gross Profit was €2,732 Mil.
Total Current Assets was €18,586 Mil.
Total Assets was €23,761 Mil.
Property, Plant and Equipment(Net PPE) was €3,549 Mil.
Depreciation, Depletion and Amortization(DDA) was €358 Mil.
Selling, General, & Admin. Expense(SGA) was €213 Mil.
Total Current Liabilities was €10,985 Mil.
Long-Term Debt & Capital Lease Obligation was €920 Mil.
Net Income was €859 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €-524 Mil.

Total Receivables was €6,456 Mil.
Revenue was €10,665 Mil.
Gross Profit was €2,544 Mil.
Total Current Assets was €19,082 Mil.
Total Assets was €24,254 Mil.
Property, Plant and Equipment(Net PPE) was €3,457 Mil.
Depreciation, Depletion and Amortization(DDA) was €366 Mil.
Selling, General, & Admin. Expense(SGA) was €195 Mil.
Total Current Liabilities was €13,013 Mil.
Long-Term Debt & Capital Lease Obligation was €478 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)
	=	(7227.49 / 10881.029)	/	(6455.947 / 10664.583)
	=	0.664229	/	0.605363
	=	1.0972

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)
	=	(2544.115 / 10664.583)	/	(2731.954 / 10881.029)
	=	0.238557	/	0.251075
	=	0.9501

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 - (18585.904 + 3548.725) / 23761.475)	/	(1 - (19082.451 + 3456.619) / 24253.941)
	=	0.068466	/	0.070705
	=	0.9683

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
	=	10881.029	/	10664.583
	=	1.0203

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))
	=	(366.326 / (366.326 + 3456.619))	/	(358.383 / (358.383 + 3548.725))
	=	0.095823	/	0.091726
	=	1.0447

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)
	=	(213.487 / 10881.029)	/	(194.641 / 10664.583)
	=	0.01962	/	0.018251
	=	1.075

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)
	=	((919.796 + 10985.24) / 23761.475)	/	((477.56 + 13013.393) / 24253.941)
	=	0.501023	/	0.556238
	=	0.9007

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
	=	(859 - 0	-	-524.434)	/	23761.475
	=	0.058222

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.

AviChina Industry & Technology Co has a M-score of -2.11 suggests that the company is unlikely to be a manipulator.

AviChina Industry & Technology Co Beneish M-Score Related Terms

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AviChina Industry & Technology Co Business Description

Industry

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02357:Hong Kong

Address

No. 14 Xiaoguan Dongli, 6th floor, Building A, Andingmenwai, Chaoyang District, Beijing, CHN, 100029

Website

https://www.avichina.com

AviChina Industry & Technology Co Ltd is engaged in the development, manufacture, sales, and upgrade of civil aviation products and defense products such as the provision of helicopters, trainer aircraft, general-purpose aircraft and regional jets for domestic and overseas customers. The company also collaborates with international aviation product manufacturers. AviChina has three operating segments: Aviation entire aircraft; Aviation ancillary system and related business which generates key revenue; and Aviation engineering services. The Aviation entire aircraft segment includes helicopters, trainer aircraft, and general aircraft for both civil and military uses. AviChina mainly conducts its business in China.