Inspur Digital Enterprise Technology (XTER:L1CC) Beneish M-Score: -1.99 (As of Jun. 26, 2026)


What is Inspur Digital Enterprise Technology Beneish M-Score?

Inspur Digital Enterprise Technology XTER:L1CC 64 Beneish M-Score is -1.99 as of Jun. 26, 2026. GuruFocus rates XTER:L1CC with a GF Score™ of 64/100. The stock has 8 warning signs investors should review. Among 2,634 Software companies, Inspur Digital Enterprise Technology ranks worse than 76.65% on this metric.

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 -1.99 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Inspur Digital Enterprise Technology's Beneish M-Score or its related term are showing as below:

XTER:L1CC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73   Med: -2.07   Max: -1.69
Current: -1.99

During the past 13 years, the highest Beneish M-Score of Inspur Digital Enterprise Technology was -1.69. The lowest was -2.73. And the median was -2.07.

Inspur Digital Enterprise Technology Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Inspur Digital Enterprise Technology'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.

Inspur Digital Enterprise Technology Beneish M-Score Chart

Inspur Digital Enterprise Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.25 -1.69 -2.16 -1.71 -1.99

Inspur Digital Enterprise Technology Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.16 0.00 -1.71 0.00 -1.99

XTER:L1CC vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Inspur Digital Enterprise Technology'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.

Inspur Digital Enterprise Technology Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Inspur Digital Enterprise Technology's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Inspur Digital Enterprise Technology's Beneish M-Score falls into.


Inspur Digital Enterprise Technology 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 Inspur Digital Enterprise Technology for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1911+0.528 * 0.9767+0.404 * 0.8652+0.892 * 0.8238+0.115 * 1.1877
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.249+4.679 * 0.096254-0.327 * 0.9402
=-2.08

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was €685.78 Mil.
Revenue was €886.11 Mil.
Gross Profit was €244.32 Mil.
Total Current Assets was €847.92 Mil.
Total Assets was €1,066.89 Mil.
Property, Plant and Equipment(Net PPE) was €53.82 Mil.
Depreciation, Depletion and Amortization(DDA) was €9.16 Mil.
Selling, General, & Admin. Expense(SGA) was €117.66 Mil.
Total Current Liabilities was €651.71 Mil.
Long-Term Debt & Capital Lease Obligation was €2.79 Mil.
Net Income was €28.80 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €-73.89 Mil.
 Total Receivables was €698.91 Mil.
Revenue was €1,075.69 Mil.
Gross Profit was €289.68 Mil.
Total Current Assets was €832.81 Mil.
Total Assets was €1,063.10 Mil.
Property, Plant and Equipment(Net PPE) was €40.08 Mil.
Depreciation, Depletion and Amortization(DDA) was €8.37 Mil.
Selling, General, & Admin. Expense(SGA) was €114.35 Mil.
Total Current Liabilities was €692.99 Mil.
Long-Term Debt & Capital Lease Obligation was €0.70 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)
=(685.777 / 886.109) / (698.908 / 1075.689)
=0.773919 / 0.649731
=1.1911

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)
=(289.675 / 1075.689) / (244.321 / 886.109)
=0.269293 / 0.275723
=0.9767

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 - (847.917 + 53.819) / 1066.89) / (1 - (832.814 + 40.076) / 1063.096)
=0.154799 / 0.178917
=0.8652

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
=886.109 / 1075.689
=0.8238

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))
=(8.37 / (8.37 + 40.076)) / (9.162 / (9.162 + 53.819))
=0.17277 / 0.145472
=1.1877

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)
=(117.656 / 886.109) / (114.351 / 1075.689)
=0.132778 / 0.106305
=1.249

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)
=((2.793 + 651.714) / 1066.89) / ((0.695 + 692.99) / 1063.096)
=0.613472 / 0.652514
=0.9402

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
=(28.803 - 0 - -73.889) / 1066.89
=0.096254

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.

Inspur Digital Enterprise Technology has a M-score of -2.08 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.99 mean?
Inspur Digital Enterprise Technology (XTER:L1CC) has a Beneish M-Score of -1.99 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Inspur Digital Enterprise Technology and its competitors. According to the industry distribution chart, Inspur Digital Enterprise Technology ranks #2019 out of 2634 companies in the Software industry, placing it in the top 76.7%.
Is Inspur Digital Enterprise Technology's Beneish M-Score too high?
Inspur Digital Enterprise Technology's current Beneish M-Score is -1.99. Based on the distribution chart, Inspur Digital Enterprise Technology ranks #2019 out of 2634 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Inspur Digital Enterprise Technology has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Inspur Digital Enterprise Technology's Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Inspur Digital Enterprise Technology ranks #2019 out of 2634 companies for Beneish M-Score. This places Inspur Digital Enterprise Technology in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Inspur Digital Enterprise Technology and its competitors. Inspur Digital Enterprise Technology's current Beneish M-Score is -1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspur Digital Enterprise Technology stock overvalued right now?
Inspur Digital Enterprise Technology (XTER:L1CC) has a current Beneish M-Score of -1.99. The current Beneish M-Score is -1.99. Inspur Digital Enterprise Technology's overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Inspur Digital Enterprise Technology (XTER:L1CC), the current Beneish M-Score is -1.99 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Inspur Digital Enterprise Technology Business Description

Other Exchanges 00596:Hong Kong
Address 1 Wang Kwong Road, Kowloon Bay, Billion Center, Room B&C, 30th Floor, Tower A, Kowloon, Hong Kong, HKG
Inspur Digital Enterprise Technology Ltd is an investment holding company. The company's segments are Cloud services, Management software, and the Internet of Things. The Cloud services segment includes the provision of cloud services. The management software segment involves the provision of software development and other software services, whereas the Internet of Things segment is engaged in the provision of data centre engineering services and sales of IT peripherals and software. Geographically, the firm generates a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.