Oriental Culture Holding (Oriental Culture Holding) Beneish M-Score : -4.31 (As of May. 20, 2024)

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What is Oriental Culture Holding 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 -4.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Oriental Culture Holding's Beneish M-Score or its related term are showing as below:

OCG' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31 Med: -1.47 Max: 2.94
Current: -4.31

During the past 6 years, the highest Beneish M-Score of Oriental Culture Holding was 2.94. The lowest was -4.31. And the median was -1.47.

Oriental Culture Holding Beneish M-Score Historical Data

The historical data trend for Oriental Culture Holding'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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Oriental Culture Holding Beneish M-Score Chart

Oriental Culture Holding Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.81

-0.12

2.94

-4.31

Oriental Culture Holding Semi-Annual Data
	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial							-0.12	-	2.94	-	-4.31

Competitive Comparison of Oriental Culture Holding's Beneish M-Score

For the Internet Retail subindustry, Oriental Culture Holding'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.

Oriental Culture Holding's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Oriental Culture Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Oriental Culture Holding's Beneish M-Score falls into.

Oriental Culture Holding 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 Oriental Culture Holding 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 * 1.1303

0.528 * 1.2706

0.404 * 0.9755

0.892 * 0.0887

0.115 * 1.0398

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.3663

4.679 * -0.156341

0.327 * 0.8965

-4.31

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $0.35 Mil.
Revenue was $1.58 Mil.
Gross Profit was $1.17 Mil.
Total Current Assets was $37.89 Mil.
Total Assets was $48.63 Mil.
Property, Plant and Equipment(Net PPE) was $9.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.61 Mil.
Selling, General, & Admin. Expense(SGA) was $5.51 Mil.
Total Current Liabilities was $3.08 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $-3.60 Mil.
Gross Profit was $0.38 Mil.
Cash Flow from Operations was $3.63 Mil.

Total Receivables was $3.45 Mil.
Revenue was $17.81 Mil.
Gross Profit was $16.82 Mil.
Total Current Assets was $42.18 Mil.
Total Assets was $53.39 Mil.
Property, Plant and Equipment(Net PPE) was $9.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.66 Mil.
Selling, General, & Admin. Expense(SGA) was $14.23 Mil.
Total Current Liabilities was $3.76 Mil.
Long-Term Debt & Capital Lease Obligation was $0.01 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)
	=	(0.346 / 1.58)	/	(3.451 / 17.813)
	=	0.218987	/	0.193735
	=	1.1303

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)
	=	(16.817 / 17.813)	/	(1.174 / 1.58)
	=	0.944086	/	0.743038
	=	1.2706

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 - (37.893 + 9.183) / 48.631)	/	(1 - (42.181 + 9.458) / 53.389)
	=	0.031975	/	0.032778
	=	0.9755

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
	=	1.58	/	17.813
	=	0.0887

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))
	=	(0.655 / (0.655 + 9.458))	/	(0.61 / (0.61 + 9.183))
	=	0.064768	/	0.062289
	=	1.0398

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)
	=	(5.51 / 1.58)	/	(14.227 / 17.813)
	=	3.487342	/	0.798686
	=	4.3663

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 + 3.081) / 48.631)	/	((0.011 + 3.762) / 53.389)
	=	0.063355	/	0.07067
	=	0.8965

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
	=	(-3.598 - 0.38	-	3.625)	/	48.631
	=	-0.156341

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.

Oriental Culture Holding has a M-score of -4.31 suggests that the company is unlikely to be a manipulator.

Oriental Culture Holding Beneish M-Score Related Terms

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Oriental Culture Holding (Oriental Culture Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Oriental Culture Holding Ltd (NAS:OCG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

198-200 Queen’s Road Central, Room 1402, Richmake Commercial Building, Hong Kong, HKG

Website

http://www.ocgroup.hk

Oriental Culture Holding Ltd is an online provider of collectibles and artwork e-commerce services. The company also offers online and offline integrated marketing, storage, and technical maintenance service to customers in China and Hong Kong. It operates through one segment namely, e-commerce of artwork trading. It generates revenue through listing service fees, transaction fees, and other revenues collected from traders.