WMCH Global Investment (HKSE:08208) Beneish M-Score : -1.96 (As of Jun. 06, 2024)

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What is WMCH Global Investment 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 -1.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for WMCH Global Investment's Beneish M-Score or its related term are showing as below:

HKSE:08208' s Beneish M-Score Range Over the Past 10 Years
Min: -8.56 Med: -2.47 Max: -0.12
Current: -1.96

During the past 7 years, the highest Beneish M-Score of WMCH Global Investment was -0.12. The lowest was -8.56. And the median was -2.47.

WMCH Global Investment Beneish M-Score Historical Data

The historical data trend for WMCH Global Investment'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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WMCH Global Investment Beneish M-Score Chart

WMCH Global Investment Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.47

-0.12

-8.56

-2.70

-1.96

WMCH Global Investment 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															-2.70	-	-	-	-1.96

Competitive Comparison of WMCH Global Investment's Beneish M-Score

For the Engineering & Construction subindustry, WMCH Global Investment'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.

WMCH Global Investment's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, WMCH Global Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where WMCH Global Investment's Beneish M-Score falls into.

WMCH Global Investment 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 WMCH Global Investment 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 * 1.0911

0.528 * 0.6501

0.404 * 1.0405

0.892 * 1.0975

0.115 * 0.3544

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9656

4.679 * 0.124587

0.327 * 0.9759

-1.96

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$14.86 Mil.
Revenue was HK$64.61 Mil.
Gross Profit was HK$14.37 Mil.
Total Current Assets was HK$26.11 Mil.
Total Assets was HK$34.54 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.86 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.92 Mil.
Selling, General, & Admin. Expense(SGA) was HK$19.44 Mil.
Total Current Liabilities was HK$8.34 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4.38 Mil.
Net Income was HK$-0.73 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-5.03 Mil.

Total Receivables was HK$12.41 Mil.
Revenue was HK$58.87 Mil.
Gross Profit was HK$8.51 Mil.
Total Current Assets was HK$26.42 Mil.
Total Assets was HK$35.98 Mil.
Property, Plant and Equipment(Net PPE) was HK$1.97 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.44 Mil.
Selling, General, & Admin. Expense(SGA) was HK$18.34 Mil.
Total Current Liabilities was HK$9.20 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4.38 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)
	=	(14.856 / 64.608)	/	(12.405 / 58.866)
	=	0.229941	/	0.210733
	=	1.0911

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)
	=	(8.512 / 58.866)	/	(14.37 / 64.608)
	=	0.1446	/	0.222418
	=	0.6501

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 - (26.107 + 0.856) / 34.538)	/	(1 - (26.424 + 1.97) / 35.978)
	=	0.219324	/	0.210795
	=	1.0405

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
	=	64.608	/	58.866
	=	1.0975

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))
	=	(0.443 / (0.443 + 1.97))	/	(0.92 / (0.92 + 0.856))
	=	0.183589	/	0.518018
	=	0.3544

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)
	=	(19.435 / 64.608)	/	(18.338 / 58.866)
	=	0.300814	/	0.311521
	=	0.9656

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)
	=	((4.379 + 8.343) / 34.538)	/	((4.377 + 9.203) / 35.978)
	=	0.368348	/	0.377453
	=	0.9759

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
	=	(-0.727 - 0	-	-5.03)	/	34.538
	=	0.124587

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.

WMCH Global Investment has a M-score of -1.96 suggests that the company is unlikely to be a manipulator.

WMCH Global Investment Beneish M-Score Related Terms

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WMCH Global Investment (HKSE:08208) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » WMCH Global Investment Ltd (HKSE:08208) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

28 Sin Ming Lane, Number 04-137, Midview City, Singapore, SGP, 573972

Website

https://www.tw-asia.com

WMCH Global Investment Ltd is a civil and structural engineering consultant. It provides various services namely civil and structural engineering consultancy services on buildings utilizing the conventional construction method and civil and structural engineering consultancy services on buildings utilizing the PPVC method, and other services including master planning, structural due diligence, and visual inspection of existing buildings. Its segments include consultancy services fees and other service fees. Geographically the activities are carried out through Singapore and Vietnam.

Executives

Tan Seow Hong	2202 Interest of your spouse
Wong Seng	2501 Other
Wmch Global Holdings Limited

WMCH Global Investment (HKSE:08208) Headlines

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