GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shenyang Fortune Precision Equipment Co Ltd (SHSE:688409) » Definitions » Beneish M-Score

Shenyang Fortune Precision Equipment Co (SHSE:688409) Beneish M-Score : -1.20 (As of May. 12, 2024)


View and export this data going back to 2022. Start your Free Trial

What is Shenyang Fortune Precision Equipment 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.

Warning Sign:

Beneish M-Score -1.2 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Shenyang Fortune Precision Equipment Co's Beneish M-Score or its related term are showing as below:

SHSE:688409' s Beneish M-Score Range Over the Past 10 Years
Min: -2.12   Med: -1.32   Max: -1.12
Current: -1.2

During the past 6 years, the highest Beneish M-Score of Shenyang Fortune Precision Equipment Co was -1.12. The lowest was -2.12. And the median was -1.32.


Shenyang Fortune Precision Equipment Co Beneish M-Score Historical Data

The historical data trend for Shenyang Fortune Precision Equipment 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.

Shenyang Fortune Precision Equipment Co Beneish M-Score Chart

Shenyang Fortune Precision Equipment Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - - - -2.12 -1.34

Shenyang Fortune Precision Equipment Co Quarterly Data
Dec18 Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -1.74 -1.29 -1.34 -1.20

Competitive Comparison of Shenyang Fortune Precision Equipment Co's Beneish M-Score

For the Metal Fabrication subindustry, Shenyang Fortune Precision Equipment 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.


Shenyang Fortune Precision Equipment Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shenyang Fortune Precision Equipment Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shenyang Fortune Precision Equipment Co's Beneish M-Score falls into.



Shenyang Fortune Precision Equipment 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 Shenyang Fortune Precision Equipment Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2987+0.528 * 1.29+0.404 * 1.6751+0.892 * 1.5111+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5042+4.679 * 0.073699-0.327 * 1.4238
=-1.20

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ¥1,110 Mil.
Revenue was 701.476 + 675.722 + 561.495 + 487.144 = ¥2,426 Mil.
Gross Profit was 178.129 + 144.041 + 148.224 + 128.554 = ¥599 Mil.
Total Current Assets was ¥3,908 Mil.
Total Assets was ¥7,592 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,757 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥190 Mil.
Total Current Liabilities was ¥1,081 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,254 Mil.
Net Income was 60.43 + 36.671 + 36.335 + 56.294 = ¥190 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -80.465 + 80.387 + -164.38 + -205.307 = ¥-370 Mil.
Total Receivables was ¥566 Mil.
Revenue was 341.396 + 531.931 + 414.782 + 317.283 = ¥1,605 Mil.
Gross Profit was 99.733 + 167.624 + 136.379 + 107.604 = ¥511 Mil.
Total Current Assets was ¥4,344 Mil.
Total Assets was ¥6,774 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,936 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥83 Mil.
Total Current Liabilities was ¥893 Mil.
Long-Term Debt & Capital Lease Obligation was ¥570 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)
=(1109.986 / 2425.837) / (565.639 / 1605.392)
=0.457568 / 0.352337
=1.2987

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)
=(511.34 / 1605.392) / (598.948 / 2425.837)
=0.318514 / 0.246904
=1.29

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 - (3908.238 + 2756.952) / 7591.584) / (1 - (4344.08 + 1936.167) / 6773.705)
=0.122029 / 0.072849
=1.6751

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
=2425.837 / 1605.392
=1.5111

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 + 1936.167)) / (0 / (0 + 2756.952))
=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)
=(189.657 / 2425.837) / (83.441 / 1605.392)
=0.078182 / 0.051975
=1.5042

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)
=((1254.056 + 1080.994) / 7591.584) / ((570.181 + 893.157) / 6773.705)
=0.307584 / 0.216032
=1.4238

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
=(189.73 - 0 - -369.765) / 7591.584
=0.073699

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.

Shenyang Fortune Precision Equipment Co has a M-score of -1.20 signals that the company is likely to be a manipulator.


Shenyang Fortune Precision Equipment Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Shenyang Fortune Precision Equipment Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Shenyang Fortune Precision Equipment Co (SHSE:688409) Business Description

Traded in Other Exchanges
N/A
Address
No. 18A-1, Feiyun Road, Hunnan District, Liaoning Province, Shenyang, CHN, 110168
Shenyang Fortune Precision Equipment Co Ltd focuses on the precision manufacturing technology of metal parts and components, and has mastered one-stop manufacturing processes such as precision machinery manufacturing, high-cleanliness surface treatment, welding, assembly, and testing that can meet stringent standards.

Shenyang Fortune Precision Equipment Co (SHSE:688409) Headlines

No Headlines