WINSF (Wins Finance Holdings) Beneish M-Score : 0.10 (As of Dec. 16, 2024)

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What is Wins Finance Holdings Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 0.1 higher than -1.78, which implies that the company might have manipulated its financial results.

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

WINSF' s Beneish M-Score Range Over the Past 10 Years
Min: -22.29 Med: -2.21 Max: 0.1
Current: 0.1

During the past 10 years, the highest Beneish M-Score of Wins Finance Holdings was 0.10. The lowest was -22.29. And the median was -2.21.

Wins Finance 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 Wins Finance 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 * 0.1242

0.528 * 1

0.404 * 0.9925

0.892 * 5.5641

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.1914

4.679 * -0.233609

0.327 * 0.1595

0.10

* 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 (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was $0.69 Mil.
Revenue was $1.52 Mil.
Gross Profit was $1.52 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $2.06 Mil.
Property, Plant and Equipment(Net PPE) was $0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.38 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.06 Mil.
Net Income was $-0.41 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $0.07 Mil.

Total Receivables was $0.99 Mil.
Revenue was $0.27 Mil.
Gross Profit was $0.27 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1.46 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.35 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.26 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)
	=	(0.687 / 1.519)	/	(0.994 / 0.273)
	=	0.452271	/	3.641026
	=	0.1242

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)
	=	(0.273 / 0.273)	/	(1.519 / 1.519)
	=	1	/	1
	=	1

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 - (0 + 0.021) / 2.059)	/	(1 - (0 + 0.004) / 1.464)
	=	0.989801	/	0.997268
	=	0.9925

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
	=	1.519	/	0.273
	=	5.5641

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 + 0.004))	/	(0.001 / (0.001 + 0.021))
	=	0	/	0.045455
	=	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)
	=	(0.376 / 1.519)	/	(0.353 / 0.273)
	=	0.247531	/	1.29304
	=	0.1914

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)
	=	((0.059 + 0) / 2.059)	/	((0.263 + 0) / 1.464)
	=	0.028655	/	0.179645
	=	0.1595

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
	=	(-0.409 - 0	-	0.072)	/	2.059
	=	-0.233609

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.

Wins Finance Holdings has a M-score of 0.10 signals that the company is likely to be a manipulator.

Wins Finance Holdings Beneish M-Score Related Terms

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Wins Finance Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Wins Finance Holdings Inc (OTCPK:WINSF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 58 Jianguo Road, 1st Floor, Building 1B, Chaoyang District, Beijing, CHN, 100024

Website

http://www.winsholdings.com

Wins Finance Holdings Inc is a diversified investment and asset management company. It is in the business of leasing, financial advisory, financial guarantees, and partnerships. The Company operates and manages its business in three reportable segments, namely, the provision of financial services, medical consulting services and Sales medical equipment in the PRC domestic market.

Executives

Amy He	officer: Chief Financial Officer	8TH FLOOR BLOCK 8 AOLINJIATAI BLDG, 1 KEHUIQIAN ST, CHAOYANG DISTRICT, BEIJING F4 00000
Richard Xu	director, officer: President	65 BROADWAY, SUITE 501, NEW YORK NY 10006
Bradley Reifler	director	590 MADISON AVENUE, 21ST FLOOR, NEW YORK NY 10022
Nicholas Clements	director	6F/TOWER, 2 WEST PROSPER CENTRE, NO.5, GUANGHUA ROAD, CHAOYANG DISTRICT, BEIJING F4 100020
Jingxiao Zhang	director	STATISTICS SCHOOL, RENMIN UNIVERSITY, 59 ZHONGGUANCUN AVENUE, HAIDIAN DISTRICT, BEIJING F4 100872
Jianming Hao	director, officer: Co-Chief Executive Officer	UNIT 106, TERN CENTRE, TOWER II,, 251 QUEEN'S ROAD, CENTRAL, HONG KONG F4 00000
Peilin Zhao	10 percent owner	1908, 19/F, BLOCK 2, NO. 116, GUANGANMENNEIDAJIE, XUANWU XU, BEIJING F4 XXXXXX
Hong Wang	10 percent owner	8TH FL BLK 5 AOLINJIATAI BLDG, 1 KEHUIQIAN ST, CHAOYANG DISTRICT, BEIJING F4 100192