Fiberhome Telecommunication Technologies Co (SHSE:600498) Beneish M-Score : -2.01 (As of May. 15, 2024)

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What is Fiberhome Telecommunication Technologies Co 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 -2.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Fiberhome Telecommunication Technologies Co's Beneish M-Score or its related term are showing as below:

SHSE:600498' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87 Med: -2.16 Max: -1.33
Current: -2.01

During the past 13 years, the highest Beneish M-Score of Fiberhome Telecommunication Technologies Co was -1.33. The lowest was -2.87. And the median was -2.16.

Fiberhome Telecommunication Technologies Co Beneish M-Score Historical Data

The historical data trend for Fiberhome Telecommunication Technologies Co'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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Fiberhome Telecommunication Technologies Co Beneish M-Score Chart

Fiberhome Telecommunication Technologies Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.33

-2.63

-2.59

-2.07

-1.69

Fiberhome Telecommunication Technologies Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.94	-2.10	-1.92	-1.69	-2.01

Competitive Comparison of Fiberhome Telecommunication Technologies Co's Beneish M-Score

For the Communication Equipment subindustry, Fiberhome Telecommunication Technologies Co'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.

Fiberhome Telecommunication Technologies Co's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Fiberhome Telecommunication Technologies Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Fiberhome Telecommunication Technologies Co's Beneish M-Score falls into.

Fiberhome Telecommunication Technologies Co 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 Fiberhome Telecommunication Technologies Co 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 * 1.6069

0.528 * 1.0576

0.404 * 0.9899

0.892 * 0.9935

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0765

4.679 * -0.022727

0.327 * 0.9735

-2.01

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥13,981 Mil.
Revenue was 5058.809 + 8570.326 + 7664.745 + 9878.252 = ¥31,172 Mil.
Gross Profit was 1256.227 + 1445.224 + 1846.132 + 1926.57 = ¥6,474 Mil.
Total Current Assets was ¥30,308 Mil.
Total Assets was ¥40,926 Mil.
Property, Plant and Equipment(Net PPE) was ¥4,695 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥1,897 Mil.
Total Current Liabilities was ¥21,683 Mil.
Long-Term Debt & Capital Lease Obligation was ¥3,671 Mil.
Net Income was 41.477 + 177.636 + 128.006 + 162.335 = ¥509 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -1861.797 + 4350.115 + 156.124 + -1204.849 = ¥1,440 Mil.

Total Receivables was ¥8,758 Mil.
Revenue was 5016.251 + 9232.756 + 7521.503 + 9606.608 = ¥31,377 Mil.
Gross Profit was 1183.523 + 2070.447 + 1746.42 + 1891.788 = ¥6,892 Mil.
Total Current Assets was ¥27,942 Mil.
Total Assets was ¥38,724 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,121 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥1,774 Mil.
Total Current Liabilities was ¥20,160 Mil.
Long-Term Debt & Capital Lease Obligation was ¥4,482 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)
	=	(13981.193 / 31172.132)	/	(8758.159 / 31377.118)
	=	0.448516	/	0.279126
	=	1.6069

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)
	=	(6892.178 / 31377.118)	/	(6474.153 / 31172.132)
	=	0.219656	/	0.20769
	=	1.0576

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 - (30307.933 + 4695.346) / 40925.96)	/	(1 - (27941.987 + 5121.405) / 38724.392)
	=	0.144717	/	0.146187
	=	0.9899

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
	=	31172.132	/	31377.118
	=	0.9935

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 / (0 + 5121.405))	/	(0 / (0 + 4695.346))
	=	0	/	0
	=	1

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)
	=	(1897.113 / 31172.132)	/	(1773.802 / 31377.118)
	=	0.060859	/	0.056532
	=	1.0765

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)
	=	((3671.157 + 21682.899) / 40925.96)	/	((4481.858 + 20160.264) / 38724.392)
	=	0.61951	/	0.636346
	=	0.9735

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
	=	(509.454 - 0	-	1439.593)	/	40925.96
	=	-0.022727

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.

Fiberhome Telecommunication Technologies Co has a M-score of -2.01 suggests that the company is unlikely to be a manipulator.

Fiberhome Telecommunication Technologies Co Beneish M-Score Related Terms

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Fiberhome Telecommunication Technologies Co (SHSE:600498) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Fiberhome Telecommunication Technologies Co Ltd (SHSE:600498) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No. 88 Youkeyuan Road, Hongshan District, Hubei, Wuhan, CHN, 430074

Website

http://www.fiberhome.com.cn

Fiberhome Telecommunication Technologies Co Ltd is a China-based company engaged in the manufacture and sales of communication equipment. Its main products include communication system equipment, optical fibers, cables and data networking products, such as the optical networking products, Internet protocol (IP) data products, broadband access products, optical fibers and cable products, wireless communication products and power supplies, as well as the optoelectronic devices. The company mainly distributes its products in domestic and overseas markets.

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