China Health Industries Holdings (China Health Industries Holdings) Beneish M-Score : 42.08 (As of May. 11, 2024)

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What is China Health Industries Holdings 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.

Warning Sign:

Beneish M-Score 42.08 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for China Health Industries Holdings's Beneish M-Score or its related term are showing as below:

CHHE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.9 Med: -2.59 Max: 52.38
Current: 42.08

During the past 13 years, the highest Beneish M-Score of China Health Industries Holdings was 52.38. The lowest was -5.90. And the median was -2.59.

China Health Industries Holdings Beneish M-Score Historical Data

The historical data trend for China Health Industries Holdings'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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China Health Industries Holdings Beneish M-Score Chart

China Health Industries Holdings Annual Data

Trend

Jun14

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Jun20

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Jun23

Beneish M-Score

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-2.68

-1.28

-3.28

China Health Industries Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															5.09	0.36	-	-	42.08

Competitive Comparison of China Health Industries Holdings's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, China Health Industries Holdings'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.

China Health Industries Holdings's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, China Health Industries Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Health Industries Holdings's Beneish M-Score falls into.

China Health Industries Holdings 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 China Health Industries Holdings 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 * 0.0434

0.528 * -3.5455

0.404 * 9.7212

0.892 * 3.5455

0.115 * 1.3006

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.2904

4.679 * 9.684877

0.327 * 11.4706

42.08

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $0.01 Mil.
Revenue was 0 + 0.038 + 0.058 + 0.021 = $0.12 Mil.
Gross Profit was 0 + 0 + -0.005 + 0.002 = $-0.00 Mil.
Total Current Assets was $0.25 Mil.
Total Assets was $4.27 Mil.
Property, Plant and Equipment(Net PPE) was $3.04 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.52 Mil.
Selling, General, & Admin. Expense(SGA) was $1.18 Mil.
Total Current Liabilities was $6.56 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -0.446 + -0.182 + -0.591 + -0.29 = $-1.51 Mil.
Non Operating Income was 0 + 0 + -0.008 + 0.012 = $0.00 Mil.
Cash Flow from Operations was 0 + -0.035 + -42.762 + -0.022 = $-42.82 Mil.

Total Receivables was $0.04 Mil.
Revenue was 0.033 + 0 + 0 + 0 = $0.03 Mil.
Gross Profit was 0.003 + 0 + 0 + 0 = $0.00 Mil.
Total Current Assets was $43.88 Mil.
Total Assets was $48.53 Mil.
Property, Plant and Equipment(Net PPE) was $3.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.82 Mil.
Selling, General, & Admin. Expense(SGA) was $1.15 Mil.
Total Current Liabilities was $6.50 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(0.006 / 0.117)	/	(0.039 / 0.033)
	=	0.051282	/	1.181818
	=	0.0434

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)
	=	(0.003 / 0.033)	/	(-0.003 / 0.117)
	=	0.090909	/	-0.025641
	=	-3.5455

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 - (0.249 + 3.043) / 4.265)	/	(1 - (43.875 + 3.52) / 48.534)
	=	0.228136	/	0.023468
	=	9.7212

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
	=	0.117	/	0.033
	=	3.5455

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))
	=	(0.818 / (0.818 + 3.52))	/	(0.516 / (0.516 + 3.043))
	=	0.188566	/	0.144985
	=	1.3006

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)
	=	(1.179 / 0.117)	/	(1.145 / 0.033)
	=	10.076923	/	34.69697
	=	0.2904

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)
	=	((0 + 6.555) / 4.265)	/	((0 + 6.503) / 48.534)
	=	1.536928	/	0.133989
	=	11.4706

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
	=	(-1.509 - 0.004	-	-42.819)	/	4.265
	=	9.684877

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.

China Health Industries Holdings has a M-score of 42.08 signals that the company is likely to be a manipulator.

China Health Industries Holdings Beneish M-Score Related Terms

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China Health Industries Holdings (China Health Industries Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » China Health Industries Holdings Inc (OTCPK:CHHE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

3199-1 Longxiang Road, Songbei District, Heilongjiang Province, Harbin, CHN, 150028

Website

http://www.chinahealthindustries.com

China Health Industries Holdings Inc operates in the health product industry and produces, markets and distributes medicines, health products, health devices and cosmetics. Its products series cover hemp-based food, hemp-based medicines, external used medicines and health food. The company has segmented its operating activities into three reportable segments, Humankind, HLJ Huimeijia, and Others. It generates maximum revenue from the Humankind segment.

Executives

Sun Xin	director, 10 percent owner, officer: CEO, CFO and Treasurer	NO 168 BINBEI STREET, SONBEI DISTRICT, HARBIN, HEI LONG JIANG F4 150000
Hall E Ewing	director, officer: Secretary	2737 W BASELINE RD 22, TEMPE AZ 85283
Jack C Robinson	director	16304 E COUNTRY SHADOW CT, LILBEAT AZ 85297
Teri S Foster	director	402 CANDOVER COURT, KATY TX 77450
Brian Lee Hahn	director, officer: COO	422 LAMONT TERRACE, BUFFALO GROVE IL 60089
Dennis Mckee	10 percent owner	3522 DOHERTY PLACE, KATY TX 77449
Thomas Allen Bontems	10 percent owner, officer: President, CEO, CFO and, other: Secretary	1808 S. 1ST AVENUE, PHONEIX AZ 85003

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