Haier Smart Home Co (XTER:690D) Beneish M-Score : -2.55 (As of Dec. 14, 2024)

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What is Haier Smart Home 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.

Good Sign:

Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Haier Smart Home Co's Beneish M-Score or its related term are showing as below:

XTER:690D' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84 Med: -2.55 Max: -1.88
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Haier Smart Home Co was -1.88. The lowest was -2.84. And the median was -2.55.

Haier Smart Home Co Beneish M-Score Historical Data

The historical data trend for Haier Smart Home 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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Haier Smart Home Co Beneish M-Score Chart

Haier Smart Home Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.62

-2.56

-2.76

-2.62

-2.49

Haier Smart Home Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.53	-2.49	-2.45	-2.59	-2.55

Competitive Comparison of Haier Smart Home Co's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Haier Smart Home 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.

Haier Smart Home Co's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Haier Smart Home Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Haier Smart Home Co's Beneish M-Score falls into.

Haier Smart Home 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 Haier Smart Home 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 * 1.0147

0.528 * 0.9953

0.404 * 1.0737

0.892 * 1.0006

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.972

4.679 * -0.028882

0.327 * 0.9567

-2.55

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €4,424 Mil.
Revenue was 8575.626 + 8534.224 + 8811.958 + 8061.214 = €33,983 Mil.
Gross Profit was 2685.655 + 2758.811 + 2551.465 + 2743.212 = €10,739 Mil.
Total Current Assets was €16,316 Mil.
Total Assets was €32,614 Mil.
Property, Plant and Equipment(Net PPE) was €5,313 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €6,617 Mil.
Total Current Liabilities was €14,781 Mil.
Long-Term Debt & Capital Lease Obligation was €2,766 Mil.
Net Income was 602.818 + 723.158 + 609.752 + 443.062 = €2,379 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 771.301 + 780.303 + 220.34 + 1548.807 = €3,321 Mil.

Total Receivables was €4,357 Mil.
Revenue was 8606.282 + 8578.713 + 8819.362 + 7958.159 = €33,963 Mil.
Gross Profit was 2688.91 + 2757.788 + 2531.076 + 2704.141 = €10,682 Mil.
Total Current Assets was €16,954 Mil.
Total Assets was €31,571 Mil.
Property, Plant and Equipment(Net PPE) was €4,713 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €6,803 Mil.
Total Current Liabilities was €15,329 Mil.
Long-Term Debt & Capital Lease Obligation was €2,426 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)
	=	(4423.793 / 33983.022)	/	(4357.285 / 33962.516)
	=	0.130177	/	0.128297
	=	1.0147

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)
	=	(10681.915 / 33962.516)	/	(10739.143 / 33983.022)
	=	0.314521	/	0.316015
	=	0.9953

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 - (16315.698 + 5313.139) / 32614.011)	/	(1 - (16954.17 + 4712.503) / 31570.774)
	=	0.336824	/	0.313711
	=	1.0737

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
	=	33983.022	/	33962.516
	=	1.0006

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 + 4712.503))	/	(0 / (0 + 5313.139))
	=	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)
	=	(6616.556 / 33983.022)	/	(6802.755 / 33962.516)
	=	0.194702	/	0.200302
	=	0.972

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)
	=	((2766.213 + 14780.947) / 32614.011)	/	((2426.419 + 15328.794) / 31570.774)
	=	0.538025	/	0.562394
	=	0.9567

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
	=	(2378.79 - 0	-	3320.751)	/	32614.011
	=	-0.028882

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.

Haier Smart Home Co has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.

Haier Smart Home Co Beneish M-Score Related Terms

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Haier Smart Home Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Haier Smart Home Co Ltd (XTER:690D) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HSHCY:USA HRSHF:USA QIHCF:USA 06690:Hong Kong 690Dd:UK 690E:Germany 690D:Germany 690D:Germany 600690:China

Address

Haier Industrial Park, Laoshan District, Shandong Province, Qingdao, CHN, 266101

Website

https://smart-home.haier.com/cn

Haier Smart Home is one of the largest household appliance manufacturers globally, with key products spanning refrigerators, washing machines, kitchen appliances, air conditioners, and water solutions. It has been consistently among the top three in China by retail sales in most home appliance categories. The company has also established a footprint in distribution channel services and commercial refrigeration business. Haier generates around 50% of sales outside China. As of December 2023, Haier Group and its subsidiaries are the largest shareholders of Haier Smart Home with around 29% equity interest in aggregate.

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