Geely Automobile Holdings (WBO:GRU) Beneish M-Score : -2.83 (As of Dec. 15, 2024)

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What is Geely Automobile Holdings 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:GRU' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94 Med: -2.49 Max: -1.9
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Geely Automobile Holdings was -1.90. The lowest was -2.94. And the median was -2.49.

Geely Automobile Holdings Beneish M-Score Historical Data

The historical data trend for Geely Automobile Holdings'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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Geely Automobile Holdings Beneish M-Score Chart

Geely Automobile Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.20

-2.13

-2.84

-2.63

-2.83

Geely Automobile Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.63	-	-2.83	-

Competitive Comparison of Geely Automobile Holdings's Beneish M-Score

For the Auto Manufacturers subindustry, Geely Automobile Holdings'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.

Geely Automobile Holdings's Beneish M-Score Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Geely Automobile Holdings's Beneish M-Score falls into.

Geely Automobile Holdings 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 Geely Automobile Holdings 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 * 1.0254

0.528 * 0.9231

0.404 * 0.9084

0.892 * 1.1487

0.115 * 0.8898

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.075

4.679 * -0.088443

0.327 * 1.0739

-2.87

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €5,485 Mil.
Revenue was €23,015 Mil.
Gross Profit was €3,521 Mil.
Total Current Assets was €14,594 Mil.
Total Assets was €24,735 Mil.
Property, Plant and Equipment(Net PPE) was €3,513 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,053 Mil.
Selling, General, & Admin. Expense(SGA) was €3,063 Mil.
Total Current Liabilities was €12,435 Mil.
Long-Term Debt & Capital Lease Obligation was €944 Mil.
Net Income was €682 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €2,869 Mil.

Total Receivables was €4,657 Mil.
Revenue was €20,035 Mil.
Gross Profit was €2,829 Mil.
Total Current Assets was €10,706 Mil.
Total Assets was €21,370 Mil.
Property, Plant and Equipment(Net PPE) was €4,360 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,126 Mil.
Selling, General, & Admin. Expense(SGA) was €2,481 Mil.
Total Current Liabilities was €9,337 Mil.
Long-Term Debt & Capital Lease Obligation was €1,427 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)
	=	(5485.245 / 23014.719)	/	(4656.878 / 20035.089)
	=	0.238336	/	0.232436
	=	1.0254

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)
	=	(2829.365 / 20035.089)	/	(3520.856 / 23014.719)
	=	0.14122	/	0.152983
	=	0.9231

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 - (14593.877 + 3512.569) / 24734.892)	/	(1 - (10705.615 + 4360.219) / 21370.405)
	=	0.26798	/	0.295014
	=	0.9084

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
	=	23014.719	/	20035.089
	=	1.1487

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))
	=	(1126.34 / (1126.34 + 4360.219))	/	(1053.462 / (1053.462 + 3512.569))
	=	0.205291	/	0.230717
	=	0.8898

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)
	=	(3063.274 / 23014.719)	/	(2480.622 / 20035.089)
	=	0.133101	/	0.123814
	=	1.075

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)
	=	((943.505 + 12434.882) / 24734.892)	/	((1426.811 + 9336.58) / 21370.405)
	=	0.540871	/	0.503659
	=	1.0739

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
	=	(681.747 - 0	-	2869.381)	/	24734.892
	=	-0.088443

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.

Geely Automobile Holdings has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

Geely Automobile Holdings Beneish M-Score Related Terms

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Geely Automobile Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Geely Automobile Holdings Ltd (WBO:GRU) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GELYY:USA GELYF:USA 175:Mexico 00175:Hong Kong 0YZ2:UK GRUA:Germany GRU:Germany GRU:Germany GRUA:Germany GRU:Germany GRU:Bulgaria

Address

23 Harbour Road, Room 2301, 23rd Floor, Great Eagle Centre, Wanchai, Hong Kong, HKG

Website

http://www.geelyauto.com.hk

Based in Hangzhou, Zhejiang province, Geely Auto manufactures and sells passenger vehicles and automotive parts. Geely is the largest local brand manufacturer and the third-largest passenger vehicle brand in terms of sales volume in China. The firm formed a joint venture with Volvo in 2016 to build cars under the Lynk & Co brand. The brand targets a young audience with sales and marketing approaches closely resembling those of modern lifestyle brands. Including Lynk & Co, Geely sold about 1.7 million cars in 2023. The domestic market accounts for more than 80% of Geely's revenue, with the rest coming from other parts of the world.