Bosideng International Holdings (HKSE:03998) Beneish M-Score : -2.98 (As of May. 06, 2024)

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What is Bosideng International 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.

Good Sign:

Beneish M-Score -2.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:03998' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98 Med: -2.67 Max: -1.68
Current: -2.98

During the past 13 years, the highest Beneish M-Score of Bosideng International Holdings was -1.68. The lowest was -2.98. And the median was -2.67.

Bosideng International Holdings Beneish M-Score Historical Data

The historical data trend for Bosideng International 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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Bosideng International Holdings Beneish M-Score Chart

Bosideng International Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.75

-2.66

-2.88

-2.32

-2.98

Bosideng International Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.32	-	-2.98	-

Competitive Comparison of Bosideng International Holdings's Beneish M-Score

For the Apparel Manufacturing subindustry, Bosideng International 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.

Bosideng International Holdings's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Bosideng International Holdings's Beneish M-Score distribution charts can be found below:

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

Bosideng International 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 Bosideng International 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 * 0.7265

0.528 * 1.0098

0.404 * 0.9329

0.892 * 0.9557

0.115 * 0.9519

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9606

4.679 * -0.043551

0.327 * 0.941

-2.98

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was HK$1,251 Mil.
Revenue was HK$19,106 Mil.
Gross Profit was HK$11,362 Mil.
Total Current Assets was HK$16,768 Mil.
Total Assets was HK$23,854 Mil.
Property, Plant and Equipment(Net PPE) was HK$3,082 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1,081 Mil.
Selling, General, & Admin. Expense(SGA) was HK$8,347 Mil.
Total Current Liabilities was HK$6,895 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2,425 Mil.
Net Income was HK$2,436 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$3,475 Mil.

Total Receivables was HK$1,801 Mil.
Revenue was HK$19,991 Mil.
Gross Profit was HK$12,006 Mil.
Total Current Assets was HK$18,170 Mil.
Total Assets was HK$26,243 Mil.
Property, Plant and Equipment(Net PPE) was HK$3,351 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1,101 Mil.
Selling, General, & Admin. Expense(SGA) was HK$9,092 Mil.
Total Current Liabilities was HK$8,150 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2,746 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)
	=	(1250.821 / 19105.751)	/	(1801.463 / 19991.144)
	=	0.065468	/	0.090113
	=	0.7265

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)
	=	(12005.801 / 19991.144)	/	(11362.472 / 19105.751)
	=	0.600556	/	0.594715
	=	1.0098

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 - (16768.327 + 3081.969) / 23853.61)	/	(1 - (18170.159 + 3351.294) / 26242.514)
	=	0.167828	/	0.179901
	=	0.9329

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
	=	19105.751	/	19991.144
	=	0.9557

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))
	=	(1100.791 / (1100.791 + 3351.294))	/	(1081.395 / (1081.395 + 3081.969))
	=	0.247253	/	0.259741
	=	0.9519

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)
	=	(8347.368 / 19105.751)	/	(9092.456 / 19991.144)
	=	0.436903	/	0.454824
	=	0.9606

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)
	=	((2424.885 + 6895.364) / 23853.61)	/	((2746.091 + 8150.16) / 26242.514)
	=	0.390727	/	0.415214
	=	0.941

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
	=	(2435.825 - 0	-	3474.685)	/	23853.61
	=	-0.043551

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.

Bosideng International Holdings has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.

Bosideng International Holdings Beneish M-Score Related Terms

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Bosideng International Holdings (HKSE:03998) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Bosideng International Holdings Ltd (HKSE:03998) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BSDGY:USA BSDGF:USA 3BD:Germany

Address

99 Queen’s Road Central, Unit 5709, 57th Floor, The Center, Central, Hong Kong, HKG

Website

https://www.bosideng.com

Bosideng International Holdings Ltd is an integrated clothing group in China. It mainly engaged in design, manufacture and sales of down apparel products including research, raw materials procurement, outsourced manufacturing, marketing and distribution of branded down apparel products, original equipment manufacturing products and non-down apparel products. The group operates its business in four segments namely Down apparels, OEM management, Ladieswear apparels, and Diversified apparels. It generates a majority of revenue from the Down apparels segment which carries on the business of sourcing and distributing branded down apparels. The group's down apparel brands include Bosideng, Snow Flying, and Bengen, among others.

Bosideng International Holdings (HKSE:03998) Headlines

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