China National Accord Medicines (SZSE:000028) Beneish M-Score

: -2.52 (As of Today)

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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 -2.52 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: -4.15 Med: -2.32 Max: -1.19
Current: -2.52

During the past 13 years, the highest Beneish M-Score of China National Accord Medicines was -1.19. The lowest was -4.15. And the median was -2.32.

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 Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Beneish M-Score

-2.46

-2.47

-2.46

-2.12

-2.44

China National Accord Medicines Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Beneish M-Score																-2.32	-2.44	-2.48	-2.44	-2.52

Competitive Comparison

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.

Annual Data Quarterly Data

China National Accord Medicines Beneish M-Score Distribution

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 in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.

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:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9862

0.528 * 1.027

0.404 * 0.9263

0.892 * 1.0864

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9696

4.679 * -0.0207

0.327 * 0.9981

-2.52

This Year (Sep22) TTM:

Last Year (Sep21) TTM:

Total Receivables was ¥19,683 Mil.
Revenue was 18487.856 + 18978.053 + 17150.857 + 18147.793 = ¥72,765 Mil.
Gross Profit was 2084.017 + 2266.933 + 1922.957 + 2163.632 = ¥8,438 Mil.
Total Current Assets was ¥36,520 Mil.
Total Assets was ¥47,462 Mil.
Property, Plant and Equipment(Net PPE) was ¥3,437 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥5,216 Mil.
Total Current Liabilities was ¥26,163 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,388 Mil.
Net Income was 373.428 + 421.854 + 252.362 + 262.272 = ¥1,310 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 1016.132 + 1259.116 + -217.452 + 235.114 = ¥2,293 Mil.

Total Receivables was ¥18,372 Mil.
Revenue was 17046.925 + 17113.126 + 16049.966 + 16768.95 = ¥66,979 Mil.
Gross Profit was 1908.625 + 2156.88 + 1789.375 + 2121.687 = ¥7,977 Mil.
Total Current Assets was ¥33,673 Mil.
Total Assets was ¥44,856 Mil.
Property, Plant and Equipment(Net PPE) was ¥3,526 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥4,951 Mil.
Total Current Liabilities was ¥24,612 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,477 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)
	=	(19682.75 / 72764.559)	/	(18372.195 / 66978.967)
	=	0.27049913	/	0.27429797
	=	0.9862

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)
	=	(7976.567 / 66978.967)	/	(8437.539 / 72764.559)
	=	0.11909062	/	0.11595671
	=	1.027

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 - (36519.799 + 3437.128) / 47461.838)	/	(1 - (33672.64 + 3526.058) / 44855.6)
	=	0.15812517	/	0.17070114
	=	0.9263

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
	=	72764.559	/	66978.967
	=	1.0864

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 + 3526.058))	/	(0 / (0 + 3437.128))
	=	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)
	=	(5215.505 / 72764.559)	/	(4951.494 / 66978.967)
	=	0.07167645	/	0.0739261
	=	0.9696

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)
	=	((1388.139 + 26163.018) / 47461.838)	/	((1476.535 + 24611.715) / 44855.6)
	=	0.58049073	/	0.5816052
	=	0.9981

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
	=	(1309.916 - 0	-	2292.91)	/	47461.838
	=	-0.0207

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 -2.52 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

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » China National Accord Medicines Corp Ltd (SZSE:000028) » Definitions » Beneish M-Score

Traded in Other Exchanges

200028:China

Address

No. 15, Ba Gua Si 4th Road, Accord Pharmaceutical Building, Futian District, Guangdong Province, Shenzhen, CHN, 518029

Website

http://www.szaccord.com.cn

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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