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GreenTree Hospitality Group (GreenTree Hospitality Group) Beneish M-Score : 0.00 (As of May. 02, 2024)


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What is GreenTree Hospitality Group 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.

The historical rank and industry rank for GreenTree Hospitality Group's Beneish M-Score or its related term are showing as below:

During the past 9 years, the highest Beneish M-Score of GreenTree Hospitality Group was -0.99. The lowest was -2.21. And the median was -1.55.


GreenTree Hospitality Group Beneish M-Score Historical Data

The historical data trend for GreenTree Hospitality Group'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.

* Premium members only.

GreenTree Hospitality Group Beneish M-Score Chart

GreenTree Hospitality Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -0.99 -1.49 -2.13 -2.21 -

GreenTree Hospitality Group Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
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 -2.30 -2.21 -3.45 -3.41 -

Competitive Comparison of GreenTree Hospitality Group's Beneish M-Score

For the Lodging subindustry, GreenTree Hospitality Group'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.


GreenTree Hospitality Group's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, GreenTree Hospitality Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where GreenTree Hospitality Group's Beneish M-Score falls into.



GreenTree Hospitality Group 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 GreenTree Hospitality Group 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 (Dec23) TTM:Last Year (Sep22) TTM:
Total Receivables was $38.3 Mil.
Revenue was 52.122 + 63.153 + 57.948 + -24.616 = $148.6 Mil.
Gross Profit was 22.488 + 29.2 + 23.75 + 6.095 = $81.5 Mil.
Total Current Assets was $227.8 Mil.
Total Assets was $707.8 Mil.
Property, Plant and Equipment(Net PPE) was $329.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.0 Mil.
Selling, General, & Admin. Expense(SGA) was $31.2 Mil.
Total Current Liabilities was $188.0 Mil.
Long-Term Debt & Capital Lease Obligation was $202.9 Mil.
Net Income was 1.507 + 16.117 + 17.364 + 3.86 = $38.8 Mil.
Non Operating Income was -1.388 + 0.294 + 10.732 + -17.571 = $-7.9 Mil.
Cash Flow from Operations was -1.799 + 21.21 + 20.607 + -0.763 = $39.3 Mil.
Total Receivables was $0.0 Mil.
Revenue was 56.948 + 0 + 48.268 + 48.084 = $153.3 Mil.
Gross Profit was 19.171 + 0 + 18.137 + 21.32 = $58.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $0.0 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.2 Mil.
Selling, General, & Admin. Expense(SGA) was $60.2 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 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)
=(38.282 / 148.607) / (0 / 153.3)
=0.257606 / 0
=

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)
=(58.628 / 153.3) / (81.533 / 148.607)
=0.38244 / 0.548648
=

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 - (227.831 + 329.162) / 707.828) / (1 - (0 + 0) / 0)
=0.213096 /
=

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
=148.607 / 153.3
=

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))
=(12.156 / (12.156 + 0)) / (12.991 / (12.991 + 329.162))
=1 / 0.037968
=

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)
=(31.193 / 148.607) / (60.249 / 153.3)
=0.209903 / 0.393014
=

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)
=((202.895 + 187.993) / 707.828) / ((0 + 0) / 0)
=0.552236 /
=

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
=(38.848 - -7.933 - 39.255) / 707.828
=0.010633

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.


GreenTree Hospitality Group Beneish M-Score Related Terms

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GreenTree Hospitality Group (GreenTree Hospitality Group) Business Description

Traded in Other Exchanges
Address
1228 Zhongshan North Road, Putuo District, Shanghai, CHN, 200065
GreenTree Hospitality Group Ltd is a franchised hotel operator in China as franchised and managed hotels represent almost all the hotels in its hotel network. The hotel network of the company comprised approximately 4,059 hotels with nearly 302,497 rooms in China, covering all centrally administrated municipalities and cities throughout all provinces and autonomous regions in China. The company operates its hotels under GreenTree Inns, GreenTree Eastern, Gme, Gya and VX, GreenTree Alliance, Vatica, and others. The company operates solely in China and generates all its revenue from China itself.

GreenTree Hospitality Group (GreenTree Hospitality Group) Headlines