Joinn Laboratories (China) Co (SHSE:603127) Beneish M-Score : -2.86 (As of May. 23, 2024)

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What is Joinn Laboratories (China) 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Joinn Laboratories (China) Co's Beneish M-Score or its related term are showing as below:

SHSE:603127' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -1.96 Max: 0.39
Current: -2.86

During the past 12 years, the highest Beneish M-Score of Joinn Laboratories (China) Co was 0.39. The lowest was -2.86. And the median was -1.96.

Joinn Laboratories (China) Co Beneish M-Score Historical Data

The historical data trend for Joinn Laboratories (China) 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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Joinn Laboratories (China) Co Beneish M-Score Chart

Joinn Laboratories (China) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.10

-2.53

-2.13

-1.76

-2.65

Joinn Laboratories (China) Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.67	-1.98	-2.10	-2.65	-2.86

Competitive Comparison of Joinn Laboratories (China) Co's Beneish M-Score

For the Diagnostics & Research subindustry, Joinn Laboratories (China) 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.

Joinn Laboratories (China) Co's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Joinn Laboratories (China) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Joinn Laboratories (China) Co's Beneish M-Score falls into.

Joinn Laboratories (China) 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 Joinn Laboratories (China) 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 * 1.0661

0.528 * 1.207

0.404 * 0.5474

0.892 * 0.9854

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0434

4.679 * -0.084195

0.327 * 0.8709

-2.86

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥313 Mil.
Revenue was 324.809 + 789.407 + 575.002 + 642.691 = ¥2,332 Mil.
Gross Profit was 106.652 + 318.162 + 246.057 + 257.612 = ¥928 Mil.
Total Current Assets was ¥6,971 Mil.
Total Assets was ¥9,733 Mil.
Property, Plant and Equipment(Net PPE) was ¥992 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥112 Mil.
Total Current Liabilities was ¥1,503 Mil.
Long-Term Debt & Capital Lease Obligation was ¥36 Mil.
Net Income was -272.222 + 69.394 + 236.971 + -97.133 = ¥-63 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 119.954 + 174.435 + 202.23 + 259.878 = ¥756 Mil.

Total Receivables was ¥298 Mil.
Revenue was 369.386 + 991.578 + 499.512 + 505.906 = ¥2,366 Mil.
Gross Profit was 190.956 + 451.9 + 254.002 + 240.35 = ¥1,137 Mil.
Total Current Assets was ¥6,069 Mil.
Total Assets was ¥10,548 Mil.
Property, Plant and Equipment(Net PPE) was ¥973 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥108 Mil.
Total Current Liabilities was ¥1,855 Mil.
Long-Term Debt & Capital Lease Obligation was ¥60 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)
	=	(312.964 / 2331.909)	/	(297.891 / 2366.382)
	=	0.134209	/	0.125885
	=	1.0661

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)
	=	(1137.208 / 2366.382)	/	(928.483 / 2331.909)
	=	0.480568	/	0.398164
	=	1.207

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 - (6971.164 + 991.649) / 9733.254)	/	(1 - (6069.406 + 973.361) / 10548.084)
	=	0.181896	/	0.332318
	=	0.5474

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
	=	2331.909	/	2366.382
	=	0.9854

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 + 973.361))	/	(0 / (0 + 991.649))
	=	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)
	=	(111.533 / 2331.909)	/	(108.473 / 2366.382)
	=	0.047829	/	0.045839
	=	1.0434

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)
	=	((35.532 + 1502.564) / 9733.254)	/	((59.5 + 1854.545) / 10548.084)
	=	0.158025	/	0.181459
	=	0.8709

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
	=	(-62.99 - 0	-	756.497)	/	9733.254
	=	-0.084195

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.

Joinn Laboratories (China) Co has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.

Joinn Laboratories (China) Co Beneish M-Score Related Terms

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Joinn Laboratories (China) Co (SHSE:603127) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Joinn Laboratories (China) Co Ltd (SHSE:603127) » Definitions » Beneish M-Score

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06127:Hong Kong

Address

A5 Rongjing East Street, Beijing Economic-Technological Development Area, Beijing, CHN, 100176

Website

https://www.joinnlabs.com

Joinn Laboratories (China) Co Ltd is a non-clinical contract research organization(CRO) focused on drug safety assessment. It operates in three segments: Non-clinical studies services include drug safety assessment, drug metabolism & pharmacokinetics (DMPK) studies, & pharmacology & efficacy studies; Clinical trial & related services segment provides early-stage services such as clinical CRO services, co-managed phase I clinical research units, & bioanalytical services, and: Sales of research models engages in the design, production, breeding, & sales of research models, currently including non-human primates and rodents. The majority is from the Non- Clinical studies services. Its geographical segments are China, the United States, and Other countries, of which the majority is from China.

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