GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) Beneish M-Score : -2.87 (As of May. 11, 2024)

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What is GuangYuYuan Chinese Herbal Medicine 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for GuangYuYuan Chinese Herbal Medicine Co's Beneish M-Score or its related term are showing as below:

SHSE:600771' s Beneish M-Score Range Over the Past 10 Years
Min: -4.29 Med: -1.98 Max: -0.22
Current: -2.87

During the past 13 years, the highest Beneish M-Score of GuangYuYuan Chinese Herbal Medicine Co was -0.22. The lowest was -4.29. And the median was -1.98.

GuangYuYuan Chinese Herbal Medicine Co Beneish M-Score Historical Data

The historical data trend for GuangYuYuan Chinese Herbal Medicine 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.

* Premium members only.

GuangYuYuan Chinese Herbal Medicine Co Beneish M-Score Chart

GuangYuYuan Chinese Herbal Medicine Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.17

-2.22

-2.59

-3.64

-2.79

GuangYuYuan Chinese Herbal Medicine 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															-3.88	-4.13	-4.29	-2.79	-2.87

Competitive Comparison of GuangYuYuan Chinese Herbal Medicine Co's Beneish M-Score

For the Drug Manufacturers - General subindustry, GuangYuYuan Chinese Herbal Medicine 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.

GuangYuYuan Chinese Herbal Medicine Co's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GuangYuYuan Chinese Herbal Medicine Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where GuangYuYuan Chinese Herbal Medicine Co's Beneish M-Score falls into.

GuangYuYuan Chinese Herbal Medicine 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 GuangYuYuan Chinese Herbal Medicine 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 * 0.6808

0.528 * 0.9408

0.404 * 1.1052

0.892 * 0.9701

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.689

4.679 * -0.040258

0.327 * 0.8355

-2.87

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥717 Mil.
Revenue was 343.379 + 313.545 + 276.911 + 307.161 = ¥1,241 Mil.
Gross Profit was 260.501 + 224.543 + 205.682 + 223.513 = ¥914 Mil.
Total Current Assets was ¥1,674 Mil.
Total Assets was ¥2,606 Mil.
Property, Plant and Equipment(Net PPE) was ¥698 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥615 Mil.
Total Current Liabilities was ¥969 Mil.
Long-Term Debt & Capital Lease Obligation was ¥38 Mil.
Net Income was 41.304 + -1.472 + 39.152 + 24.791 = ¥104 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 129.412 + -144.016 + 80.986 + 142.291 = ¥209 Mil.

Total Receivables was ¥1,085 Mil.
Revenue was 386.398 + 309.419 + 341.889 + 241.563 = ¥1,279 Mil.
Gross Profit was 282.859 + 235.046 + 200.95 + 167.81 = ¥887 Mil.
Total Current Assets was ¥1,768 Mil.
Total Assets was ¥2,729 Mil.
Property, Plant and Equipment(Net PPE) was ¥739 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥920 Mil.
Total Current Liabilities was ¥1,026 Mil.
Long-Term Debt & Capital Lease Obligation was ¥235 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)
	=	(716.746 / 1240.996)	/	(1085.307 / 1279.269)
	=	0.577557	/	0.848381
	=	0.6808

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)
	=	(886.665 / 1279.269)	/	(914.239 / 1240.996)
	=	0.693103	/	0.736698
	=	0.9408

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 - (1674.111 + 697.551) / 2605.674)	/	(1 - (1768.456 + 738.89) / 2729.124)
	=	0.089809	/	0.081263
	=	1.1052

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
	=	1240.996	/	1279.269
	=	0.9701

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 + 738.89))	/	(0 / (0 + 697.551))
	=	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)
	=	(614.556 / 1240.996)	/	(919.513 / 1279.269)
	=	0.495212	/	0.71878
	=	0.689

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)
	=	((37.849 + 968.514) / 2605.674)	/	((235.149 + 1026.371) / 2729.124)
	=	0.38622	/	0.462244
	=	0.8355

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
	=	(103.775 - 0	-	208.673)	/	2605.674
	=	-0.040258

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.

GuangYuYuan Chinese Herbal Medicine Co has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

GuangYuYuan Chinese Herbal Medicine Co Beneish M-Score Related Terms

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GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » GuangYuYuan Chinese Herbal Medicine Co Ltd (SHSE:600771) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Gaoxin 6th Road, High-tech Zone, No. 52, Liren Technology Park, Building A, 6th Floor, Xi'an, Shaanxi, CHN

Website

http://www.topsun.com

GuangYuYuan Chinese Herbal Medicine Co Ltd distributes pharmaceutical products. Its products include far plate turtle age wine bottle, niuhuang qingxin pills, boutique angong niuhuang wan, modified turtle age wine, ding kundan, and many more.

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