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JL Mag Rare-Earth Co (SZSE:300748) Beneish M-Score : -2.89 (As of Apr. 28, 2024)


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What is JL Mag Rare-Earth 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 -2.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for JL Mag Rare-Earth Co's Beneish M-Score or its related term are showing as below:

SZSE:300748' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89   Med: -1.72   Max: -1.51
Current: -2.89

During the past 11 years, the highest Beneish M-Score of JL Mag Rare-Earth Co was -1.51. The lowest was -2.89. And the median was -1.72.


JL Mag Rare-Earth Co Beneish M-Score Historical Data

The historical data trend for JL Mag Rare-Earth 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.

* Premium members only.

JL Mag Rare-Earth Co Beneish M-Score Chart

JL Mag Rare-Earth Co 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 -1.81 -2.11 -1.54 -1.51 -2.89

JL Mag Rare-Earth Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -1.51 -2.23 -2.63 -2.81 -2.89

Competitive Comparison of JL Mag Rare-Earth Co's Beneish M-Score

For the Metal Fabrication subindustry, JL Mag Rare-Earth 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.


JL Mag Rare-Earth Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, JL Mag Rare-Earth Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where JL Mag Rare-Earth Co's Beneish M-Score falls into.



JL Mag Rare-Earth 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 JL Mag Rare-Earth Co 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 * 0.8992+0.528 * 1.0064+0.404 * 1.2618+0.892 * 0.9334+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9577+4.679 * -0.080676-0.327 * 0.9968
=-2.89

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was ¥2,390 Mil.
Revenue was 1637.467 + 1620.367 + 1779.443 + 1650.587 = ¥6,688 Mil.
Gross Profit was 237.106 + 298.605 + 287.716 + 251.495 = ¥1,075 Mil.
Total Current Assets was ¥8,836 Mil.
Total Assets was ¥11,826 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,489 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥88 Mil.
Total Current Liabilities was ¥3,983 Mil.
Long-Term Debt & Capital Lease Obligation was ¥553 Mil.
Net Income was 69.427 + 161.663 + 154.398 + 178.204 = ¥564 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 700.76 + 37.843 + 362.098 + 417.065 = ¥1,518 Mil.
Total Receivables was ¥2,848 Mil.
Revenue was 1951.747 + 1909.643 + 1795.083 + 1508.714 = ¥7,165 Mil.
Gross Profit was 190.409 + 290.421 + 385.965 + 292.233 = ¥1,159 Mil.
Total Current Assets was ¥9,127 Mil.
Total Assets was ¥11,220 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,717 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥99 Mil.
Total Current Liabilities was ¥4,111 Mil.
Long-Term Debt & Capital Lease Obligation was ¥207 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)
=(2390.454 / 6687.864) / (2848.197 / 7165.187)
=0.357432 / 0.397505
=0.8992

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)
=(1159.028 / 7165.187) / (1074.922 / 6687.864)
=0.161758 / 0.160727
=1.0064

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 - (8836.264 + 2488.866) / 11825.954) / (1 - (9126.965 + 1716.894) / 11220.456)
=0.04235 / 0.033563
=1.2618

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
=6687.864 / 7165.187
=0.9334

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 + 1716.894)) / (0 / (0 + 2488.866))
=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)
=(88.424 / 6687.864) / (98.921 / 7165.187)
=0.013222 / 0.013806
=0.9577

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)
=((553.266 + 3983.495) / 11825.954) / ((207.069 + 4111.296) / 11220.456)
=0.383627 / 0.384865
=0.9968

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
=(563.692 - 0 - 1517.766) / 11825.954
=-0.080676

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.

JL Mag Rare-Earth Co has a M-score of -2.89 suggests that the company is unlikely to be a manipulator.


JL Mag Rare-Earth Co Beneish M-Score Related Terms

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JL Mag Rare-Earth Co (SZSE:300748) Business Description

Traded in Other Exchanges
Address
81 West Jinling Road, Economic and Technological Development Zone, Jiangxi Province, Ganzhou, CHN, 341000
JL Mag Rare-Earth, or JL Mag, is a leading global producer of high-performance rare earth permanent magnets, or REPMs. JL Mag focuses on the production and sale of NdFeB PMs, the most widely used type of REPMs, mainly made from an alloy of neodymium (Nd), iron (Fe) and boron (B). The company is ranked first in the world by high-performance REPMs, according to Frost & Sullivan. JL Mag is also ranked first in the global grain boundary diffusion, or GBD, REPMs market. Its products have a wide array of applications, mainly in new energy vehicles, or NEVs, automotive parts, wind turbine generators, energy-saving variable-frequency air-conditioners, or VFACs.

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