Ningbo Bohui Chemical Technology Co (SZSE:300839) Beneish M-Score : -2.63 (As of May. 18, 2024)

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What is Ningbo Bohui Chemical Technology 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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ningbo Bohui Chemical Technology Co's Beneish M-Score or its related term are showing as below:

SZSE:300839' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24 Med: -2.05 Max: -0.98
Current: -2.63

During the past 12 years, the highest Beneish M-Score of Ningbo Bohui Chemical Technology Co was -0.98. The lowest was -4.24. And the median was -2.05.

Ningbo Bohui Chemical Technology Co Beneish M-Score Historical Data

The historical data trend for Ningbo Bohui Chemical Technology 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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Ningbo Bohui Chemical Technology Co Beneish M-Score Chart

Ningbo Bohui Chemical Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.99

-1.69

-2.54

-4.24

Ningbo Bohui Chemical Technology 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															-2.62	-2.48	-2.88	-4.24	-2.63

Competitive Comparison of Ningbo Bohui Chemical Technology Co's Beneish M-Score

For the Oil & Gas Refining & Marketing subindustry, Ningbo Bohui Chemical Technology 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.

Ningbo Bohui Chemical Technology Co's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Ningbo Bohui Chemical Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ningbo Bohui Chemical Technology Co's Beneish M-Score falls into.

Ningbo Bohui Chemical Technology 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 Ningbo Bohui Chemical Technology 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 * 0.8483

0.528 * 2.6447

0.404 * 0.7665

0.892 * 1.0717

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9789

4.679 * -0.149724

0.327 * 1.4536

-2.63

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥225 Mil.
Revenue was 792.538 + 865.768 + 792.866 + 703.515 = ¥3,155 Mil.
Gross Profit was 7.444 + -15.091 + 30.325 + 131.408 = ¥154 Mil.
Total Current Assets was ¥1,612 Mil.
Total Assets was ¥2,622 Mil.
Property, Plant and Equipment(Net PPE) was ¥898 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥28 Mil.
Total Current Liabilities was ¥1,212 Mil.
Long-Term Debt & Capital Lease Obligation was ¥721 Mil.
Net Income was -99.427 + -335.493 + 22.302 + 56.367 = ¥-356 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -390.875 + 439.549 + 97.505 + -109.805 = ¥36 Mil.

Total Receivables was ¥247 Mil.
Revenue was 415.607 + 825.534 + 990.55 + 712.023 = ¥2,944 Mil.
Gross Profit was 97.908 + 128.746 + 100.279 + 53.336 = ¥380 Mil.
Total Current Assets was ¥1,065 Mil.
Total Assets was ¥2,172 Mil.
Property, Plant and Equipment(Net PPE) was ¥986 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥26 Mil.
Total Current Liabilities was ¥683 Mil.
Long-Term Debt & Capital Lease Obligation was ¥419 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)
	=	(224.533 / 3154.687)	/	(246.98 / 2943.714)
	=	0.071174	/	0.083901
	=	0.8483

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)
	=	(380.269 / 2943.714)	/	(154.086 / 3154.687)
	=	0.12918	/	0.048844
	=	2.6447

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 - (1612.266 + 897.815) / 2622.321)	/	(1 - (1064.714 + 986.261) / 2172.275)
	=	0.042802	/	0.05584
	=	0.7665

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
	=	3154.687	/	2943.714
	=	1.0717

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 + 986.261))	/	(0 / (0 + 897.815))
	=	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)
	=	(27.546 / 3154.687)	/	(26.257 / 2943.714)
	=	0.008732	/	0.00892
	=	0.9789

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)
	=	((721.003 + 1212.322) / 2622.321)	/	((418.557 + 683.202) / 2172.275)
	=	0.737257	/	0.507191
	=	1.4536

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
	=	(-356.251 - 0	-	36.374)	/	2622.321
	=	-0.149724

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.

Ningbo Bohui Chemical Technology Co has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Ningbo Bohui Chemical Technology Co Beneish M-Score Related Terms

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Ningbo Bohui Chemical Technology Co (SZSE:300839) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Ningbo Bohui Chemical Technology Co Ltd (SZSE:300839) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No.199 Taixing Road, Petrochemical Economic and Technological Development Zone, Zhejiang Province, Ningbo, CHN, 315207

Website

http://www.bhpcc.com

Ningbo Bohui Chemical Technology Co Ltd is engaged in research, development, production and sales of heavy aromatic hydrocarbon series products and light fuel oil. The company uses extraction technology and uses fuel oil as a raw material for deep processing, extending the industrial chain, increasing the added value of fuel oil, and turning it into waste. It produces and sells aromatic hydrocarbon series products such as rubber additives, plastic additives, asphalt additives, lubricant additives, and light fuel oil. Its application scope of products mainly covers the fields of rubber processing, asphalt processing and lubricating oil processing.

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