Tianqi Lithium Industries (SZSE:002466) Beneish M-Score : -5.18 (As of May. 09, 2024)

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What is Tianqi Lithium Industries 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 -5.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tianqi Lithium Industries's Beneish M-Score or its related term are showing as below:

SZSE:002466' s Beneish M-Score Range Over the Past 10 Years
Min: -5.18 Med: -2.56 Max: 2.73
Current: -5.18

During the past 13 years, the highest Beneish M-Score of Tianqi Lithium Industries was 2.73. The lowest was -5.18. And the median was -2.56.

Tianqi Lithium Industries Beneish M-Score Historical Data

The historical data trend for Tianqi Lithium Industries'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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Tianqi Lithium Industries Beneish M-Score Chart

Tianqi Lithium Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.52

-2.57

-0.71

1.33

-4.10

Tianqi Lithium Industries 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															0.39	-1.63	-3.30	-4.10	-5.18

Competitive Comparison of Tianqi Lithium Industries's Beneish M-Score

For the Specialty Chemicals subindustry, Tianqi Lithium Industries'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.

Tianqi Lithium Industries's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Tianqi Lithium Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tianqi Lithium Industries's Beneish M-Score falls into.

Tianqi Lithium Industries 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 Tianqi Lithium Industries 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 * 0.2839

0.528 * 1.0747

0.404 * 1.0822

0.892 * 0.6784

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 3.0167

4.679 * -0.319822

0.327 * 0.9477

-5.18

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥2,212 Mil.
Revenue was 2584.635 + 7104.296 + 8575.932 + 13374.56 = ¥31,639 Mil.
Gross Profit was 1250.736 + 5486.463 + 7309.278 + 11345.77 = ¥25,392 Mil.
Total Current Assets was ¥16,636 Mil.
Total Assets was ¥69,948 Mil.
Property, Plant and Equipment(Net PPE) was ¥18,282 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥303 Mil.
Total Current Liabilities was ¥5,124 Mil.
Long-Term Debt & Capital Lease Obligation was ¥10,310 Mil.
Net Income was -3896.785 + -801.199 + 1646.051 + 1577.236 = ¥-1,475 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 3144.368 + 2652.857 + 7933.81 + 7165.296 = ¥20,896 Mil.

Total Receivables was ¥11,484 Mil.
Revenue was 11448.675 + 15802.931 + 10350.382 + 9038.413 = ¥46,640 Mil.
Gross Profit was 10280.439 + 13350.856 + 9035.012 + 7562.263 = ¥40,229 Mil.
Total Current Assets was ¥27,999 Mil.
Total Assets was ¥75,058 Mil.
Property, Plant and Equipment(Net PPE) was ¥12,325 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥148 Mil.
Total Current Liabilities was ¥8,561 Mil.
Long-Term Debt & Capital Lease Obligation was ¥8,913 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)
	=	(2211.719 / 31639.423)	/	(11483.604 / 46640.401)
	=	0.069904	/	0.246216
	=	0.2839

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)
	=	(40228.57 / 46640.401)	/	(25392.247 / 31639.423)
	=	0.862526	/	0.802551
	=	1.0747

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 - (16636.189 + 18282.359) / 69948.472)	/	(1 - (27998.83 + 12324.693) / 75057.866)
	=	0.500796	/	0.462768
	=	1.0822

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
	=	31639.423	/	46640.401
	=	0.6784

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 + 12324.693))	/	(0 / (0 + 18282.359))
	=	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)
	=	(302.566 / 31639.423)	/	(147.847 / 46640.401)
	=	0.009563	/	0.00317
	=	3.0167

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)
	=	((10310.411 + 5123.682) / 69948.472)	/	((8913.084 + 8561.424) / 75057.866)
	=	0.220649	/	0.232814
	=	0.9477

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
	=	(-1474.697 - 0	-	20896.331)	/	69948.472
	=	-0.319822

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.

Tianqi Lithium Industries has a M-score of -5.18 suggests that the company is unlikely to be a manipulator.

Tianqi Lithium Industries Beneish M-Score Related Terms

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Tianqi Lithium Industries (SZSE:002466) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Tianqi Lithium Industries Inc (SZSE:002466) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No.10 East Gaopeng Road, Hi-Tech Development Zone, Sichuan Province, Chengdu, CHN, 629200

Website

http://www.tianqilithium.com

Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.

Tianqi Lithium Industries (SZSE:002466) Headlines

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