Ningxia Orient Tantalum Industry Co (SZSE:000962) Beneish M-Score : -2.09 (As of Apr. 30, 2024)

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What is Ningxia Orient Tantalum Industry 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 -2.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ningxia Orient Tantalum Industry Co's Beneish M-Score or its related term are showing as below:

SZSE:000962' s Beneish M-Score Range Over the Past 10 Years
Min: -9.9 Med: -2.38 Max: 3.84
Current: -2.09

During the past 13 years, the highest Beneish M-Score of Ningxia Orient Tantalum Industry Co was 3.84. The lowest was -9.90. And the median was -2.38.

Ningxia Orient Tantalum Industry Co Beneish M-Score Historical Data

The historical data trend for Ningxia Orient Tantalum Industry 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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Ningxia Orient Tantalum Industry Co Beneish M-Score Chart

Ningxia Orient Tantalum Industry Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.43

-1.70

-2.82

-1.67

-2.13

Ningxia Orient Tantalum Industry 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															-1.63	-1.85	-1.60	-2.13	-2.09

Competitive Comparison of Ningxia Orient Tantalum Industry Co's Beneish M-Score

For the Other Industrial Metals & Mining subindustry, Ningxia Orient Tantalum Industry 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.

Ningxia Orient Tantalum Industry Co's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Ningxia Orient Tantalum Industry Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ningxia Orient Tantalum Industry Co's Beneish M-Score falls into.

Ningxia Orient Tantalum Industry 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 Ningxia Orient Tantalum Industry 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 * 1.123

0.528 * 0.8291

0.404 * 0.8624

0.892 * 1.0491

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7508

4.679 * 0.080793

0.327 * 0.6042

-2.09

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥400 Mil.
Revenue was 258.456 + 327.157 + 234.213 + 254.661 = ¥1,074 Mil.
Gross Profit was 47.039 + 60.342 + 43.289 + 54.969 = ¥206 Mil.
Total Current Assets was ¥1,621 Mil.
Total Assets was ¥2,866 Mil.
Property, Plant and Equipment(Net PPE) was ¥336 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥37 Mil.
Total Current Liabilities was ¥336 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2 Mil.
Net Income was 49.727 + 40.682 + 28.354 + 59.428 = ¥178 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -99.394 + 70.603 + 1.983 + -26.559 = ¥-53 Mil.

Total Receivables was ¥339 Mil.
Revenue was 292.021 + 261.729 + 234.147 + 236.287 = ¥1,024 Mil.
Gross Profit was 39.051 + 40.125 + 33.43 + 49.9 = ¥163 Mil.
Total Current Assets was ¥983 Mil.
Total Assets was ¥2,024 Mil.
Property, Plant and Equipment(Net PPE) was ¥296 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥20 Mil.
Total Current Liabilities was ¥236 Mil.
Long-Term Debt & Capital Lease Obligation was ¥158 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)
	=	(399.645 / 1074.487)	/	(339.217 / 1024.184)
	=	0.37194	/	0.331207
	=	1.123

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)
	=	(162.506 / 1024.184)	/	(205.639 / 1074.487)
	=	0.158669	/	0.191383
	=	0.8291

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 - (1620.505 + 335.638) / 2866.056)	/	(1 - (982.646 + 296.1) / 2023.698)
	=	0.317479	/	0.368114
	=	0.8624

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
	=	1074.487	/	1024.184
	=	1.0491

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 + 296.1))	/	(0 / (0 + 335.638))
	=	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)
	=	(37.064 / 1074.487)	/	(20.178 / 1024.184)
	=	0.034495	/	0.019702
	=	1.7508

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)
	=	((1.518 + 335.505) / 2866.056)	/	((158.197 + 235.643) / 2023.698)
	=	0.117591	/	0.194614
	=	0.6042

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
	=	(178.191 - 0	-	-53.367)	/	2866.056
	=	0.080793

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.

Ningxia Orient Tantalum Industry Co has a M-score of -2.09 suggests that the company is unlikely to be a manipulator.

Ningxia Orient Tantalum Industry Co Beneish M-Score Related Terms

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Ningxia Orient Tantalum Industry Co (SZSE:000962) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Ningxia Orient Tantalum Industry Co Ltd (SZSE:000962) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No.119 Yanjin Road, Ningxia, Shizuishan, CHN, 753000

Website

http://www.otic.com.cn

Ningxia Orient Tantalum Industry Co Ltd is specialized in research, development, and production of rare metals in China. It produces metals and alloys of tantalum, niobium, beryllium, and titanium, as well as SiC and PV abrasive materials, battery energy materials and others. These products are used in electronics, communication, aviation, airspace, metallurgy, oil chemicals, lighting, sports, medicals, atomic energy, solar energy and other fields. The company distributes its products in both Chinese and overseas markets.

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