Angang Steel Co (Angang Steel Co) Beneish M-Score : -3.66 (As of Jun. 01, 2024)

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What is Angang Steel 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 -3.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ANGGF' s Beneish M-Score Range Over the Past 10 Years
Min: -8.38 Med: -2.72 Max: 2.32
Current: -3.66

During the past 13 years, the highest Beneish M-Score of Angang Steel Co was 2.32. The lowest was -8.38. And the median was -2.72.

Angang Steel Co Beneish M-Score Historical Data

The historical data trend for Angang Steel 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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Angang Steel Co Beneish M-Score Chart

Angang Steel Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.80

-2.96

-2.82

-0.83

-6.17

Angang Steel 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															2.32	-8.38	1.30	-6.17	-3.66

Competitive Comparison of Angang Steel Co's Beneish M-Score

For the Steel subindustry, Angang Steel 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.

Angang Steel Co's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Angang Steel Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Angang Steel Co's Beneish M-Score falls into.

Angang Steel 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 Angang Steel 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 * 0.9294

0.528 * -0.4716

0.404 * 1.1248

0.892 * 0.8286

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1717

4.679 * -0.046107

0.327 * 1.0979

-3.70

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $603 Mil.
Revenue was 3796.848 + 4091.482 + 3489.086 + 3907.197 = $15,285 Mil.
Gross Profit was -131.084 + -40.335 + -14.525 + -94.255 = $-280 Mil.
Total Current Assets was $3,900 Mil.
Total Assets was $13,642 Mil.
Property, Plant and Equipment(Net PPE) was $7,712 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $156 Mil.
Total Current Liabilities was $5,254 Mil.
Long-Term Debt & Capital Lease Obligation was $787 Mil.
Net Income was -230.091 + -159.939 + -105.373 + -167.146 = $-663 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 104.284 + -167.362 + 49.192 + -19.689 = $-34 Mil.

Total Receivables was $783 Mil.
Revenue was 4476.048 + 4334.954 + 4353.017 + 5282.441 = $18,446 Mil.
Gross Profit was 77.494 + 81.616 + -170.952 + 171.317 = $159 Mil.
Total Current Assets was $4,658 Mil.
Total Assets was $14,480 Mil.
Property, Plant and Equipment(Net PPE) was $7,907 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $161 Mil.
Total Current Liabilities was $5,515 Mil.
Long-Term Debt & Capital Lease Obligation was $326 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)
	=	(603.069 / 15284.613)	/	(783.062 / 18446.46)
	=	0.039456	/	0.042451
	=	0.9294

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)
	=	(159.475 / 18446.46)	/	(-280.199 / 15284.613)
	=	0.008645	/	-0.018332
	=	-0.4716

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 - (3900.16 + 7712.004) / 13641.741)	/	(1 - (4658.027 + 7906.66) / 14479.966)
	=	0.148777	/	0.132271
	=	1.1248

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
	=	15284.613	/	18446.46
	=	0.8286

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 + 7906.66))	/	(0 / (0 + 7712.004))
	=	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)
	=	(156.222 / 15284.613)	/	(160.916 / 18446.46)
	=	0.010221	/	0.008723
	=	1.1717

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)
	=	((787.197 + 5254.044) / 13641.741)	/	((325.647 + 5515.1) / 14479.966)
	=	0.44285	/	0.403367
	=	1.0979

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
	=	(-662.549 - 0	-	-33.575)	/	13641.741
	=	-0.046107

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.

Angang Steel Co has a M-score of -3.70 suggests that the company is unlikely to be a manipulator.

Angang Steel Co Beneish M-Score Related Terms

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Angang Steel Co (Angang Steel Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Angang Steel Co Ltd (OTCPK:ANGGF) » Definitions » Beneish M-Score

Traded in Other Exchanges

00347:Hong Kong GNV:Germany 000898:China

Address

Production Area of Angang Steel, Tie Xi District, Liaoning Province, Anshan, CHN, 114021

Website

http://www.ansteel.com.cn

Angang Steel Co Ltd is engaged in the steel rolling and processing industry. The Company is classified into an operating segment based on the type of business: production and sale of steel products. The Company's products have diversified structures and include hot rolled sheets, medium and thick plates, cold rolled sheets, color coating plates, heavy rails, seamless steel pipes and wire rods, and other products. These products are widely used in industries such as machinery, metallurgy, petroleum, chemical industry, coal, electric power, railway, shipbuilding, automobile, construction, home electrical appliances, and aviation. Geographically, the group derives a majority of its revenue from the China region.