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China National Accord Medicines (SZSE:000028) Beneish M-Score : -2.38 (As of May. 21, 2024)


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What is China National Accord Medicines 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China National Accord Medicines's Beneish M-Score or its related term are showing as below:

SZSE:000028' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18   Med: -2.42   Max: -1.19
Current: -2.38

During the past 13 years, the highest Beneish M-Score of China National Accord Medicines was -1.19. The lowest was -3.18. And the median was -2.42.


China National Accord Medicines Beneish M-Score Historical Data

The historical data trend for China National Accord Medicines'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.

China National Accord Medicines Beneish M-Score Chart

China National Accord Medicines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.46 -2.12 -2.44 -2.67 -2.43

China National Accord Medicines 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 -2.60 -2.55 -2.42 -2.43 -2.38

Competitive Comparison of China National Accord Medicines's Beneish M-Score

For the Medical Distribution subindustry, China National Accord Medicines'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.


China National Accord Medicines's Beneish M-Score Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, China National Accord Medicines's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China National Accord Medicines's Beneish M-Score falls into.



China National Accord Medicines 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 China National Accord Medicines 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 * 1.155+0.528 * 1.0283+0.404 * 0.9325+0.892 * 1.012+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.984+4.679 * -0.009067-0.327 * 1.0018
=-2.38

* 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 ¥25,330 Mil.
Revenue was 19090.481 + 18891.62 + 18198.333 + 19700.714 = ¥75,881 Mil.
Gross Profit was 2073.384 + 2513.366 + 2087.957 + 2317.434 = ¥8,992 Mil.
Total Current Assets was ¥40,058 Mil.
Total Assets was ¥51,525 Mil.
Property, Plant and Equipment(Net PPE) was ¥3,913 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥5,529 Mil.
Total Current Liabilities was ¥27,722 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,642 Mil.
Net Income was 388.771 + 409.592 + 359.413 + 468.046 = ¥1,626 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -634.146 + 1471.67 + -20.807 + 1276.291 = ¥2,093 Mil.
Total Receivables was ¥21,670 Mil.
Revenue was 18686.818 + 18826.37 + 18487.856 + 18978.053 = ¥74,979 Mil.
Gross Profit was 2133.302 + 2652.304 + 2084.017 + 2266.933 = ¥9,137 Mil.
Total Current Assets was ¥36,929 Mil.
Total Assets was ¥47,885 Mil.
Property, Plant and Equipment(Net PPE) was ¥3,428 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥5,552 Mil.
Total Current Liabilities was ¥25,912 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,329 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)
=(25329.759 / 75881.148) / (21669.857 / 74979.097)
=0.333808 / 0.289012
=1.155

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)
=(9136.556 / 74979.097) / (8992.141 / 75881.148)
=0.121855 / 0.118503
=1.0283

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 - (40058.309 + 3913.394) / 51524.997) / (1 - (36929.434 + 3428.267) / 47885.198)
=0.146595 / 0.157199
=0.9325

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
=75881.148 / 74979.097
=1.012

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 + 3428.267)) / (0 / (0 + 3913.394))
=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)
=(5529.026 / 75881.148) / (5551.918 / 74979.097)
=0.072864 / 0.074046
=0.984

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)
=((1642.184 + 27722.116) / 51524.997) / ((1328.788 + 25911.745) / 47885.198)
=0.569904 / 0.568872
=1.0018

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
=(1625.822 - 0 - 2093.008) / 51524.997
=-0.009067

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.

China National Accord Medicines has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


China National Accord Medicines Beneish M-Score Related Terms

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China National Accord Medicines (SZSE:000028) Business Description

Traded in Other Exchanges
Address
No. 15, Ba Gua Si 4th Road, Accord Pharmaceutical Building, Futian District, Guangdong Province, Shenzhen, CHN, 518029
China National Accord Medicines Corp Ltd develops and manufactures pharmaceuticals in China. The company engaged in the wholesale of Chinese patent drugs, traditional Chinese medicines, chemical medicine preparations, antibiotics, biochemical drugs and cerebrovascular system drugs. It operates through the following segments: The Head office segment engages in investing and managing the business; The Pharmaceutical Distribution segment engages in the distribution of medicine and pharmaceutical products to customers, including hospitals, other distributors, retail drug stores, and clinics, and Retail pharmacy segment, which is managing the operation of Guoda Pharmacy. It generates maximum revenue from the Pharmaceutical Distribution segment.

China National Accord Medicines (SZSE:000028) Headlines

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