China International Capital (HKSE:03908) Beneish M-Score : -2.41 (As of Apr. 27, 2024)

View and export this data going back to 2015. Start your Free Trial

What is China International Capital 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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:03908' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06 Med: -2.05 Max: -0.18
Current: -2.41

During the past 12 years, the highest Beneish M-Score of China International Capital was -0.18. The lowest was -3.06. And the median was -2.05.

China International Capital Beneish M-Score Historical Data

The historical data trend for China International Capital'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.

China International Capital Beneish M-Score Chart

China International Capital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.65

-1.27

-2.23

-3.06

-2.41

China International Capital Quarterly Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-3.06	-	-	-2.41

Competitive Comparison of China International Capital's Beneish M-Score

For the Capital Markets subindustry, China International Capital'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 International Capital's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, China International Capital's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China International Capital's Beneish M-Score falls into.

China International Capital 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 International Capital 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 * 1.0516

0.528 * 0.9779

0.404 * 0.9632

0.892 * 0.886

0.115 * 1.3005

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7504

4.679 * 0.013741

0.327 * 0.9824

-2.41

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$76,367 Mil.
Revenue was HK$36,121 Mil.
Gross Profit was HK$23,501 Mil.
Total Current Assets was HK$644,909 Mil.
Total Assets was HK$682,853 Mil.
Property, Plant and Equipment(Net PPE) was HK$8,115 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1,938 Mil.
Selling, General, & Admin. Expense(SGA) was HK$261 Mil.
Total Current Liabilities was HK$445,344 Mil.
Long-Term Debt & Capital Lease Obligation was HK$120,774 Mil.
Net Income was HK$6,733 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$-2,649 Mil.

Total Receivables was HK$81,962 Mil.
Revenue was HK$40,768 Mil.
Gross Profit was HK$25,937 Mil.
Total Current Assets was HK$686,138 Mil.
Total Assets was HK$724,484 Mil.
Property, Plant and Equipment(Net PPE) was HK$5,492 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1,837 Mil.
Selling, General, & Admin. Expense(SGA) was HK$393 Mil.
Total Current Liabilities was HK$512,270 Mil.
Long-Term Debt & Capital Lease Obligation was HK$99,123 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)
	=	(76366.616 / 36120.677)	/	(81962.041 / 40767.768)
	=	2.114208	/	2.010462
	=	1.0516

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)
	=	(25937.494 / 40767.768)	/	(23500.805 / 36120.677)
	=	0.636226	/	0.650619
	=	0.9779

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 - (644909.406 + 8115.203) / 682853.363)	/	(1 - (686137.572 + 5491.514) / 724484.351)
	=	0.043683	/	0.04535
	=	0.9632

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
	=	36120.677	/	40767.768
	=	0.886

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))
	=	(1837.126 / (1837.126 + 5491.514))	/	(1937.846 / (1937.846 + 8115.203))
	=	0.250678	/	0.192762
	=	1.3005

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)
	=	(261.435 / 36120.677)	/	(393.261 / 40767.768)
	=	0.007238	/	0.009646
	=	0.7504

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)
	=	((120774.367 + 445344.496) / 682853.363)	/	((99122.651 + 512270.147) / 724484.351)
	=	0.829049	/	0.843901
	=	0.9824

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
	=	(6733.446 - 0	-	-2649.417)	/	682853.363
	=	0.013741

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 International Capital has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.

China International Capital Beneish M-Score Related Terms

Thank you for viewing the detailed overview of China International Capital's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

China International Capital (HKSE:03908) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » China International Capital Corp Ltd (HKSE:03908) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CNICF:USA CIM:Germany 601995:China

Address

1 Jianguomenwai Avenue, 27th and 28th Floor, China World Office 2, Chaoyang District, Beijing, CHN, 100004

Website

https://www.cicc.com

China International Capital Corp Ltd is a capital market operations company based in China. Its business is carried through investment banking, equity sales and trading, fixed income commodities and currencies, Asset Management; Wealth management, and private equity segments. The company derives its earnings predominantly from China and the rest from overseas. It generates maximum revenue from Wealth management segment.

China International Capital (HKSE:03908) Headlines

No Headlines