U Power (U Power) Beneish M-Score : -1.38 (As of Jun. 22, 2024)

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What is U Power 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 -1.38 higher than -1.78, which implies that the company might have manipulated its financial results.

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

UCAR' s Beneish M-Score Range Over the Past 10 Years
Min: -1.38 Med: -1.2 Max: -1.02
Current: -1.38

During the past 4 years, the highest Beneish M-Score of U Power was -1.02. The lowest was -1.38. And the median was -1.20.

U Power Beneish M-Score Historical Data

The historical data trend for U Power'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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U Power Beneish M-Score Chart

U Power Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.02

-1.38

U Power Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-	-	-1.02	-	-1.38

Competitive Comparison of U Power's Beneish M-Score

For the Auto & Truck Dealerships subindustry, U Power'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.

U Power's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, U Power's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where U Power's Beneish M-Score falls into.

U Power 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 U Power 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 * 0.5361

0.528 * 0.5533

0.404 * 0.7939

0.892 * 2.4758

0.115 * 0.8934

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4335

4.679 * 0.076347

0.327 * 0.7186

-1.38

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $6.49 Mil.
Revenue was $2.77 Mil.
Gross Profit was $1.71 Mil.
Total Current Assets was $22.86 Mil.
Total Assets was $60.08 Mil.
Property, Plant and Equipment(Net PPE) was $4.68 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.17 Mil.
Selling, General, & Admin. Expense(SGA) was $6.12 Mil.
Total Current Liabilities was $10.49 Mil.
Long-Term Debt & Capital Lease Obligation was $0.84 Mil.
Net Income was $-2.71 Mil.
Gross Profit was $1.87 Mil.
Cash Flow from Operations was $-9.17 Mil.

Total Receivables was $4.89 Mil.
Revenue was $1.12 Mil.
Gross Profit was $0.38 Mil.
Total Current Assets was $7.75 Mil.
Total Assets was $40.43 Mil.
Property, Plant and Equipment(Net PPE) was $5.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.11 Mil.
Selling, General, & Admin. Expense(SGA) was $5.70 Mil.
Total Current Liabilities was $8.48 Mil.
Long-Term Debt & Capital Lease Obligation was $2.12 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)
	=	(6.491 / 2.768)	/	(4.89 / 1.118)
	=	2.345014	/	4.373882
	=	0.5361

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)
	=	(0.381 / 1.118)	/	(1.705 / 2.768)
	=	0.340787	/	0.615968
	=	0.5533

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 - (22.856 + 4.681) / 60.081)	/	(1 - (7.747 + 5.097) / 40.428)
	=	0.541669	/	0.682299
	=	0.7939

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
	=	2.768	/	1.118
	=	2.4758

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))
	=	(1.105 / (1.105 + 5.097))	/	(1.166 / (1.166 + 4.681))
	=	0.178168	/	0.199419
	=	0.8934

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)
	=	(6.12 / 2.768)	/	(5.702 / 1.118)
	=	2.210983	/	5.100179
	=	0.4335

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)
	=	((0.838 + 10.487) / 60.081)	/	((2.121 + 8.484) / 40.428)
	=	0.188496	/	0.262318
	=	0.7186

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
	=	(-2.708 - 1.87	-	-9.165)	/	60.081
	=	0.076347

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.

U Power has a M-score of -1.38 signals that the company is likely to be a manipulator.

U Power Beneish M-Score Related Terms

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U Power (U Power) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » U Power Ltd (NAS:UCAR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

18th Floor, Building 3, Science and Technology Industrial Park, Yijiang District, Anhui Province, Wuhu, CHN, 241003

Website

http://www.upincar.com

U Power Ltd is involved in the provision of vehicle sourcing services. It is principally engaged in the provision of new energy vehicles development and sales; battery swapping stations manufactory and sales; battery swapping services and sourcing services. The company as a broker engaged in sales of vehicles between automobile wholesalers and buyers, including small and medium sized vehicle dealers and individual customers primarily located in the lower-tier cities in China, which are smaller and less developed than the tier-1 or tier-2 cities.