Beijing GeoEnviron Engineering & Technology (SHSE:603588) Beneish M-Score : -2.10 (As of May. 04, 2024)

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What is Beijing GeoEnviron Engineering & Technology 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 -2.1 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Beijing GeoEnviron Engineering & Technology's Beneish M-Score or its related term are showing as below:

SHSE:603588' s Beneish M-Score Range Over the Past 10 Years
Min: -2.57 Med: -1.86 Max: 10.23
Current: -2.1

During the past 13 years, the highest Beneish M-Score of Beijing GeoEnviron Engineering & Technology was 10.23. The lowest was -2.57. And the median was -1.86.

Beijing GeoEnviron Engineering & Technology Beneish M-Score Historical Data

The historical data trend for Beijing GeoEnviron Engineering & Technology'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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Beijing GeoEnviron Engineering & Technology Beneish M-Score Chart

Beijing GeoEnviron Engineering & Technology Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.20

-2.48

-2.18

-2.06

Beijing GeoEnviron Engineering & Technology 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															-1.91	-1.87	-2.00	-2.06	-2.10

Competitive Comparison of Beijing GeoEnviron Engineering & Technology's Beneish M-Score

For the Waste Management subindustry, Beijing GeoEnviron Engineering & Technology'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.

Beijing GeoEnviron Engineering & Technology's Beneish M-Score Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Beijing GeoEnviron Engineering & Technology's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Beijing GeoEnviron Engineering & Technology's Beneish M-Score falls into.

Beijing GeoEnviron Engineering & Technology 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 Beijing GeoEnviron Engineering & Technology 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 * 0.779

0.528 * 1.477

0.404 * 0.882

0.892 * 1.3384

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9355

4.679 * 0.017628

0.327 * 1.0534

-2.10

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥5,057 Mil.
Revenue was 3125.074 + 3090.046 + 3021.712 + 2733.42 = ¥11,970 Mil.
Gross Profit was 464.288 + 514.638 + 435.368 + 507.149 = ¥1,921 Mil.
Total Current Assets was ¥13,256 Mil.
Total Assets was ¥27,042 Mil.
Property, Plant and Equipment(Net PPE) was ¥4,243 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥337 Mil.
Total Current Liabilities was ¥11,046 Mil.
Long-Term Debt & Capital Lease Obligation was ¥5,154 Mil.
Net Income was 194.007 + -152.938 + 163.577 + 287.732 = ¥492 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 99.894 + 245.305 + 162.825 + -492.345 = ¥16 Mil.

Total Receivables was ¥4,850 Mil.
Revenue was 1735.189 + 2584.066 + 2193.184 + 2430.933 = ¥8,943 Mil.
Gross Profit was 470.944 + 742.56 + 395.94 + 510.946 = ¥2,120 Mil.
Total Current Assets was ¥10,938 Mil.
Total Assets was ¥23,532 Mil.
Property, Plant and Equipment(Net PPE) was ¥3,179 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥269 Mil.
Total Current Liabilities was ¥8,604 Mil.
Long-Term Debt & Capital Lease Obligation was ¥4,780 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)
	=	(5057.461 / 11970.252)	/	(4850.336 / 8943.372)
	=	0.422502	/	0.542339
	=	0.779

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)
	=	(2120.39 / 8943.372)	/	(1921.443 / 11970.252)
	=	0.237091	/	0.160518
	=	1.477

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 - (13255.502 + 4242.837) / 27041.798)	/	(1 - (10937.893 + 3178.836) / 23532.385)
	=	0.352915	/	0.400115
	=	0.882

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
	=	11970.252	/	8943.372
	=	1.3384

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 + 3178.836))	/	(0 / (0 + 4242.837))
	=	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)
	=	(336.735 / 11970.252)	/	(268.947 / 8943.372)
	=	0.028131	/	0.030072
	=	0.9355

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)
	=	((5153.868 + 11046.43) / 27041.798)	/	((4779.529 + 8603.835) / 23532.385)
	=	0.599084	/	0.568721
	=	1.0534

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
	=	(492.378 - 0	-	15.679)	/	27041.798
	=	0.017628

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.

Beijing GeoEnviron Engineering & Technology has a M-score of -2.10 suggests that the company is unlikely to be a manipulator.

Beijing GeoEnviron Engineering & Technology Beneish M-Score Related Terms

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Beijing GeoEnviron Engineering & Technology (SHSE:603588) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Beijing GeoEnviron Engineering & Technology Inc (SHSE:603588) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

BGE Building, No.9 Dijin Road, Zhongguancun Environmental Protection Park, Beiqing Road, Haidian District, Beijing, CHN, 100095

Website

http://www.bgechina.cn

Beijing GeoEnviron Engineering & Technology Inc is specialized in the environmental technology research and the provision of solutions for the pollution control system. The company provides various services such as Urban 360 Environmental Manager that removes medical waste and hazardous wastes disposal, Kitchen waste treatment, Sludge disposal and others. Industrial Environment involves treatment of industrial wastewater and treatment of industrial solid waste, and Environment Remediation is engaged in remediation of the industrial site, underground water remediation, landfill remediation and farmland remediation.

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