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Naipu Mining Machinery Co (SZSE:300818) Beneish M-Score : -1.76 (As of Apr. 23, 2025)


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What is Naipu Mining Machinery 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 -1.76 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Naipu Mining Machinery Co's Beneish M-Score or its related term are showing as below:

SZSE:300818' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13   Med: -2.21   Max: -0.51
Current: -1.76

During the past 12 years, the highest Beneish M-Score of Naipu Mining Machinery Co was -0.51. The lowest was -3.13. And the median was -2.21.


Naipu Mining Machinery Co Beneish M-Score Historical Data

The historical data trend for Naipu Mining Machinery 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.

Naipu Mining Machinery Co Beneish M-Score Chart

Naipu Mining Machinery Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.13 -0.51 -2.11 -2.87 -1.76

Naipu Mining Machinery Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -2.87 -2.38 -1.72 -1.54 -1.76

Competitive Comparison of Naipu Mining Machinery Co's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, Naipu Mining Machinery 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.


Naipu Mining Machinery Co's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Naipu Mining Machinery Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Naipu Mining Machinery Co's Beneish M-Score falls into.


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Naipu Mining Machinery 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 Naipu Mining Machinery 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 * 1.2328+0.528 * 0.9713+0.404 * 1.2866+0.892 * 1.1962+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8547+4.679 * 0.033504-0.327 * 0.852
=-1.76

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was ¥291 Mil.
Revenue was 200.715 + 294.458 + 378.5 + 248.064 = ¥1,122 Mil.
Gross Profit was 74.859 + 124.858 + 119.031 + 100.242 = ¥419 Mil.
Total Current Assets was ¥1,155 Mil.
Total Assets was ¥2,573 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,171 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥103 Mil.
Total Current Liabilities was ¥531 Mil.
Long-Term Debt & Capital Lease Obligation was ¥384 Mil.
Net Income was -3.887 + 36.035 + 45.087 + 39.236 = ¥116 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 122.256 + 3.335 + 33.371 + -128.683 = ¥30 Mil.
Total Receivables was ¥198 Mil.
Revenue was 287.821 + 250.027 + 231.125 + 168.786 = ¥938 Mil.
Gross Profit was 114.389 + 96.298 + 69.599 + 59.937 = ¥340 Mil.
Total Current Assets was ¥1,373 Mil.
Total Assets was ¥2,387 Mil.
Property, Plant and Equipment(Net PPE) was ¥837 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥101 Mil.
Total Current Liabilities was ¥616 Mil.
Long-Term Debt & Capital Lease Obligation was ¥381 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)
=(291.424 / 1121.737) / (197.628 / 937.759)
=0.259797 / 0.210745
=1.2328

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)
=(340.223 / 937.759) / (418.99 / 1121.737)
=0.362804 / 0.373519
=0.9713

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 - (1155.498 + 1171.289) / 2572.565) / (1 - (1372.534 + 837.417) / 2387.217)
=0.095538 / 0.074256
=1.2866

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
=1121.737 / 937.759
=1.1962

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 + 837.417)) / (0 / (0 + 1171.289))
=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)
=(103.216 / 1121.737) / (100.954 / 937.759)
=0.092014 / 0.107655
=0.8547

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)
=((383.722 + 531.142) / 2572.565) / ((380.669 + 615.753) / 2387.217)
=0.355623 / 0.417399
=0.852

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
=(116.471 - 0 - 30.279) / 2572.565
=0.033504

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.

Naipu Mining Machinery Co has a M-score of -1.76 signals that the company is likely to be a manipulator.


Naipu Mining Machinery Co Beneish M-Score Related Terms

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Naipu Mining Machinery Co Business Description

Traded in Other Exchanges
N/A
Address
No. 52 Xingyuan Road, Economic Development Zone, Jiangxi Province, Shangrao, CHN
Naipu Mining Machinery Co Ltd is engaged in developing, manufacturing and marketing mine beneficiation equipment and rubber wear-resistant products and spares. Its products include Slurry Pump Series, Hydrocyclone Series, Spares For Grinding Mills, Spares For Flotation Machine, Spares For Vibrating Screens, and Rubber Composite Pipes.
Executives
Cheng Sheng Directors, executives

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