CSSC Offshore & Marine Engineering (Group) Co (SHSE:600685) Beneish M-Score : -2.25 (As of May. 19, 2024)

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What is CSSC Offshore & Marine Engineering (Group) 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for CSSC Offshore & Marine Engineering (Group) Co's Beneish M-Score or its related term are showing as below:

SHSE:600685' s Beneish M-Score Range Over the Past 10 Years
Min: -54.75 Med: -2.4 Max: 258.79
Current: -2.25

During the past 13 years, the highest Beneish M-Score of CSSC Offshore & Marine Engineering (Group) Co was 258.79. The lowest was -54.75. And the median was -2.40.

CSSC Offshore & Marine Engineering (Group) Co Beneish M-Score Historical Data

The historical data trend for CSSC Offshore & Marine Engineering (Group) 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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CSSC Offshore & Marine Engineering (Group) Co Beneish M-Score Chart

CSSC Offshore & Marine Engineering (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.04

258.79

-2.92

-2.46

-2.50

CSSC Offshore & Marine Engineering (Group) 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															-1.85	-1.44	-2.41	-2.50	-2.25

Competitive Comparison of CSSC Offshore & Marine Engineering (Group) Co's Beneish M-Score

For the Aerospace & Defense subindustry, CSSC Offshore & Marine Engineering (Group) 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.

CSSC Offshore & Marine Engineering (Group) Co's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, CSSC Offshore & Marine Engineering (Group) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CSSC Offshore & Marine Engineering (Group) Co's Beneish M-Score falls into.

CSSC Offshore & Marine Engineering (Group) 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 CSSC Offshore & Marine Engineering (Group) 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 * 0.9938

0.528 * 0.8891

0.404 * 1.0623

0.892 * 1.2572

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.044

4.679 * 0.00783

0.327 * 0.962

-2.25

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥4,759 Mil.
Revenue was 2806.869 + 6373.601 + 3790.016 + 4083.47 = ¥17,054 Mil.
Gross Profit was 256.86 + 404.79 + 294.56 + 275.139 = ¥1,231 Mil.
Total Current Assets was ¥28,056 Mil.
Total Assets was ¥50,840 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,608 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥285 Mil.
Total Current Liabilities was ¥24,672 Mil.
Long-Term Debt & Capital Lease Obligation was ¥3,424 Mil.
Net Income was 15.374 + 23.868 + 11.534 + 39.331 = ¥90 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -3403.181 + 2985.637 + 2929.828 + -2820.277 = ¥-308 Mil.

Total Receivables was ¥3,809 Mil.
Revenue was 1898.863 + 5495.718 + 3028.204 + 3142.753 = ¥13,566 Mil.
Gross Profit was 95.682 + 391.454 + 193.212 + 190.481 = ¥871 Mil.
Total Current Assets was ¥25,702 Mil.
Total Assets was ¥46,179 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,792 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥218 Mil.
Total Current Liabilities was ¥24,500 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2,030 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)
	=	(4759.121 / 17053.956)	/	(3809.246 / 13565.538)
	=	0.279063	/	0.280803
	=	0.9938

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)
	=	(870.829 / 13565.538)	/	(1231.349 / 17053.956)
	=	0.064194	/	0.072203
	=	0.8891

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 - (28055.508 + 5608.482) / 50839.798)	/	(1 - (25701.713 + 5791.561) / 46179.252)
	=	0.337842	/	0.318021
	=	1.0623

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
	=	17053.956	/	13565.538
	=	1.2572

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 + 5791.561))	/	(0 / (0 + 5608.482))
	=	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)
	=	(285.485 / 17053.956)	/	(217.51 / 13565.538)
	=	0.01674	/	0.016034
	=	1.044

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)
	=	((3423.796 + 24672.374) / 50839.798)	/	((2029.951 + 24499.882) / 46179.252)
	=	0.552641	/	0.574497
	=	0.962

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
	=	(90.107 - 0	-	-307.993)	/	50839.798
	=	0.00783

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.

CSSC Offshore & Marine Engineering (Group) Co has a M-score of -2.25 suggests that the company is unlikely to be a manipulator.

CSSC Offshore & Marine Engineering (Group) Co Beneish M-Score Related Terms

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CSSC Offshore & Marine Engineering (Group) Co (SHSE:600685) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » CSSC Offshore & Marine Engineering (Group) Co Ltd (SHSE:600685) » Definitions » Beneish M-Score

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Traded in Other Exchanges

00317:Hong Kong GSZ:Germany

Address

No. 137 Gexin Road, 15th Floor, Marine Tower, Shipping Building, Haizhu District, Guangdong Province, Guangzhou, CHN, 510250

Website

http://comec.cssc.net.cn

CSSC Offshore & Marine Engineering (Group) Co Ltd manufactures military and civil ships and conducts off-shore engineering. The functions of the boats have a wide range, including military, patrol, rescue, and transportation. Multiple subsidiaries allow the company to produce multiple ships and supply customized maintenance for clients. The company operates through three business segments: Shipbuilding and related business, Steel Structure engineering, Ship maintenance and modification, and others.

CSSC Offshore & Marine Engineering (Group) Co (SHSE:600685) Headlines

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