Kingchem (Liaoning) Life Science Co (SZSE:301509) Beneish M-Score : -1.40 (As of Jun. 22, 2024)

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What is Kingchem (Liaoning) Life Science 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 -1.4 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Kingchem (Liaoning) Life Science Co's Beneish M-Score or its related term are showing as below:

SZSE:301509' s Beneish M-Score Range Over the Past 10 Years
Min: -1.4 Med: -1.34 Max: -1.28
Current: -1.4

During the past 6 years, the highest Beneish M-Score of Kingchem (Liaoning) Life Science Co was -1.28. The lowest was -1.40. And the median was -1.34.

Kingchem (Liaoning) Life Science Co Beneish M-Score Historical Data

The historical data trend for Kingchem (Liaoning) Life Science 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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Kingchem (Liaoning) Life Science Co Beneish M-Score Chart

Kingchem (Liaoning) Life Science Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.28

Kingchem (Liaoning) Life Science Co Quarterly Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial									-	-	-	-1.28	-1.40

Competitive Comparison of Kingchem (Liaoning) Life Science Co's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Kingchem (Liaoning) Life Science 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.

Kingchem (Liaoning) Life Science Co's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Kingchem (Liaoning) Life Science Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kingchem (Liaoning) Life Science Co's Beneish M-Score falls into.

Kingchem (Liaoning) Life Science 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 Kingchem (Liaoning) Life Science 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 * 0.7788

0.528 * 0.9053

0.404 * 0.464

0.892 * 0.8727

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * -8.4487

4.679 * -0.045537

0.327 * 0.2354

-1.40

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥97.6 Mil.
Revenue was 124.333 + 180.754 + 154.037 + 218.145 = ¥677.3 Mil.
Gross Profit was 48.98 + 76.71 + 81.447 + 114.219 = ¥321.4 Mil.
Total Current Assets was ¥1,847.5 Mil.
Total Assets was ¥2,295.1 Mil.
Property, Plant and Equipment(Net PPE) was ¥387.3 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0.0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥56.2 Mil.
Total Current Liabilities was ¥86.5 Mil.
Long-Term Debt & Capital Lease Obligation was ¥5.1 Mil.
Net Income was 16.741 + 27.368 + 34.311 + 71.228 = ¥149.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0.0 Mil.
Cash Flow from Operations was 74.539 + 4.508 + 120.281 + 54.83 = ¥254.2 Mil.

Total Receivables was ¥143.5 Mil.
Revenue was 213.889 + 149.817 + 191.953 + 220.445 = ¥776.1 Mil.
Gross Profit was 89.6 + 56.646 + 86.25 + 100.876 = ¥333.4 Mil.
Total Current Assets was ¥671.8 Mil.
Total Assets was ¥1,125.2 Mil.
Property, Plant and Equipment(Net PPE) was ¥389.7 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0.0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥-7.6 Mil.
Total Current Liabilities was ¥152.4 Mil.
Long-Term Debt & Capital Lease Obligation was ¥38.3 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)
	=	(97.562 / 677.269)	/	(143.547 / 776.104)
	=	0.144052	/	0.184958
	=	0.7788

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)
	=	(333.372 / 776.104)	/	(321.356 / 677.269)
	=	0.429546	/	0.474488
	=	0.9053

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 - (1847.496 + 387.265) / 2295.076)	/	(1 - (671.769 + 389.689) / 1125.185)
	=	0.02628	/	0.056637
	=	0.464

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
	=	677.269	/	776.104
	=	0.8727

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 + 389.689))	/	(0 / (0 + 387.265))
	=	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)
	=	(56.179 / 677.269)	/	(-7.62 / 776.104)
	=	0.082949	/	-0.009818
	=	-8.4487

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)
	=	((5.101 + 86.479) / 2295.076)	/	((38.309 + 152.423) / 1125.185)
	=	0.039903	/	0.169512
	=	0.2354

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
	=	(149.648 - 0	-	254.158)	/	2295.076
	=	-0.045537

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.

Kingchem (Liaoning) Life Science Co has a M-score of -1.40 signals that the company is likely to be a manipulator.

Kingchem (Liaoning) Life Science Co Beneish M-Score Related Terms

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Kingchem (Liaoning) Life Science Co (SZSE:301509) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Kingchem (Liaoning) Life Science Co Ltd (SZSE:301509) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No. 6, Anren Road, Fluorine Chemical Industry Park, Yimatu Town, Fumeng, Liaoning, Fuxin, CHN, 123000

Website

https://www.kingchemchina.com

Kingchem (Liaoning) Life Science Co Ltd is engaged in Customized research & development and production services for small molecule drug intermediates and a small amount of raw materials. It is a key manufacturer of fluoro-organic compounds in China and is capable of using HF, KF, and highly selective fluorinating agents at a commercial scale.

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