Tsann Kuen (China) Enterprise Co (SZSE:200512) Beneish M-Score : -1.51 (As of May. 20, 2024)

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What is Tsann Kuen (China) Enterprise 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.

Warning Sign:

Beneish M-Score -1.51 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Tsann Kuen (China) Enterprise Co's Beneish M-Score or its related term are showing as below:

SZSE:200512' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48 Med: -2.58 Max: -1.01
Current: -1.51

During the past 13 years, the highest Beneish M-Score of Tsann Kuen (China) Enterprise Co was -1.01. The lowest was -3.48. And the median was -2.58.

Tsann Kuen (China) Enterprise Co Beneish M-Score Historical Data

The historical data trend for Tsann Kuen (China) Enterprise 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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Tsann Kuen (China) Enterprise Co Beneish M-Score Chart

Tsann Kuen (China) Enterprise Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.02

-2.55

-2.65

-3.48

-1.01

Tsann Kuen (China) Enterprise 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															-3.13	-3.26	-3.29	-1.01	-1.51

Competitive Comparison of Tsann Kuen (China) Enterprise Co's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Tsann Kuen (China) Enterprise 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.

Tsann Kuen (China) Enterprise Co's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Tsann Kuen (China) Enterprise Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tsann Kuen (China) Enterprise Co's Beneish M-Score falls into.

Tsann Kuen (China) Enterprise 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 Tsann Kuen (China) Enterprise 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 * 1.2496

0.528 * 1.0775

0.404 * 3.2336

0.892 * 1.0114

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1054

4.679 * -0.042335

0.327 * 0.9848

-1.51

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$221 Mil.
Revenue was 405.03 + 424.009 + 517.654 + 343.051 = HK$1,690 Mil.
Gross Profit was 65.772 + 72.886 + 93.368 + 69.698 = HK$302 Mil.
Total Current Assets was HK$2,005 Mil.
Total Assets was HK$2,786 Mil.
Property, Plant and Equipment(Net PPE) was HK$564 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$50 Mil.
Total Current Liabilities was HK$685 Mil.
Long-Term Debt & Capital Lease Obligation was HK$430 Mil.
Net Income was 16.517 + 24.08 + 40.338 + 19.48 = HK$100 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 23.279 + 121.543 + 44.701 + 28.825 = HK$218 Mil.

Total Receivables was HK$175 Mil.
Revenue was 355.107 + 347.017 + 453.136 + 515.444 = HK$1,671 Mil.
Gross Profit was 63.662 + 74.131 + 90.1 + 93.546 = HK$321 Mil.
Total Current Assets was HK$2,066 Mil.
Total Assets was HK$2,893 Mil.
Property, Plant and Equipment(Net PPE) was HK$757 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$44 Mil.
Total Current Liabilities was HK$561 Mil.
Long-Term Debt & Capital Lease Obligation was HK$616 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)
	=	(221.019 / 1689.744)	/	(174.876 / 1670.704)
	=	0.1308	/	0.104672
	=	1.2496

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)
	=	(321.439 / 1670.704)	/	(301.724 / 1689.744)
	=	0.192397	/	0.178562
	=	1.0775

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 - (2005.015 + 564.212) / 2785.711)	/	(1 - (2066.448 + 757.238) / 2893.218)
	=	0.077712	/	0.024033
	=	3.2336

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
	=	1689.744	/	1670.704
	=	1.0114

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 + 757.238))	/	(0 / (0 + 564.212))
	=	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)
	=	(49.549 / 1689.744)	/	(44.321 / 1670.704)
	=	0.029323	/	0.026528
	=	1.1054

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)
	=	((430.161 + 685.401) / 2785.711)	/	((615.876 + 560.569) / 2893.218)
	=	0.400459	/	0.406622
	=	0.9848

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
	=	(100.415 - 0	-	218.348)	/	2785.711
	=	-0.042335

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.

Tsann Kuen (China) Enterprise Co has a M-score of -1.51 signals that the company is likely to be a manipulator.

Tsann Kuen (China) Enterprise Co Beneish M-Score Related Terms

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Tsann Kuen (China) Enterprise Co (SZSE:200512) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Tsann Kuen (China) Enterprise Co Ltd (SZSE:200512) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

TSANN KUEN Industrial Park, Taiwanese Investment Zone, Fujian Province, Zhangzhou, CHN, 363107

Website

http://www.eupa.com

Tsann Kuen (China) Enterprise Co Ltd is a company that develops and manufactures household appliances, electronics, light industrial products and, modern office supplies. Its operating segments are Small home appliance manufacturing and Other services. The product categories include Cooking utensils, Everyday home appliances, Tea and coffee makers, and other products and services. Geographically the company operates in Australia, Africa, America, Europe, and Asia, of which prime revenue is derived from America. The majority of its revenue is generated through the Small home appliance manufacturing segment.

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