Asia-Potash International Investment (Guangzhou) Co (SZSE:000893) Beneish M-Score : -3.12 (As of May. 13, 2024)

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What is Asia-Potash International Investment (Guangzhou) 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 -3.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Asia-Potash International Investment (Guangzhou) Co's Beneish M-Score or its related term are showing as below:

SZSE:000893' s Beneish M-Score Range Over the Past 10 Years
Min: -5.45 Med: -2.19 Max: 23.27
Current: -3.12

During the past 13 years, the highest Beneish M-Score of Asia-Potash International Investment (Guangzhou) Co was 23.27. The lowest was -5.45. And the median was -2.19.

Asia-Potash International Investment (Guangzhou) Co Beneish M-Score Historical Data

The historical data trend for Asia-Potash International Investment (Guangzhou) 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.

Asia-Potash International Investment (Guangzhou) Co Beneish M-Score Chart

Asia-Potash International Investment (Guangzhou) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.45

-0.27

-1.18

0.51

-3.84

Asia-Potash International Investment (Guangzhou) 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															-1.19	-2.70	-3.68	-3.84	-3.12

Competitive Comparison of Asia-Potash International Investment (Guangzhou) Co's Beneish M-Score

For the Agricultural Inputs subindustry, Asia-Potash International Investment (Guangzhou) 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.

Asia-Potash International Investment (Guangzhou) Co's Beneish M-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Asia-Potash International Investment (Guangzhou) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Asia-Potash International Investment (Guangzhou) Co's Beneish M-Score falls into.

Asia-Potash International Investment (Guangzhou) 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 Asia-Potash International Investment (Guangzhou) 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 * 0.9428

0.528 * 1.2742

0.404 * 0.8611

0.892 * 0.968

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4496

4.679 * -0.020915

0.327 * 2.4484

-3.12

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥127 Mil.
Revenue was 633.276 + 1006.499 + 869.191 + 1167.425 = ¥3,676 Mil.
Gross Profit was 336.177 + 555.188 + 475.198 + 691.847 = ¥2,058 Mil.
Total Current Assets was ¥1,408 Mil.
Total Assets was ¥16,420 Mil.
Property, Plant and Equipment(Net PPE) was ¥7,598 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥285 Mil.
Total Current Liabilities was ¥2,084 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,380 Mil.
Net Income was 81.184 + 240.719 + 277.988 + 380.684 = ¥981 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -78.856 + 330.524 + 569.38 + 502.951 = ¥1,324 Mil.

Total Receivables was ¥139 Mil.
Revenue was 854.482 + 1053.014 + 649.481 + 1240.969 = ¥3,798 Mil.
Gross Profit was 566.251 + 696.853 + 499.855 + 946.607 = ¥2,710 Mil.
Total Current Assets was ¥2,296 Mil.
Total Assets was ¥13,305 Mil.
Property, Plant and Equipment(Net PPE) was ¥4,032 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥203 Mil.
Total Current Liabilities was ¥1,134 Mil.
Long-Term Debt & Capital Lease Obligation was ¥13 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)
	=	(127.288 / 3676.391)	/	(139.471 / 3797.946)
	=	0.034623	/	0.036723
	=	0.9428

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)
	=	(2709.566 / 3797.946)	/	(2058.41 / 3676.391)
	=	0.713429	/	0.5599
	=	1.2742

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 - (1407.695 + 7597.601) / 16420.04)	/	(1 - (2295.774 + 4031.875) / 13304.816)
	=	0.451567	/	0.524409
	=	0.8611

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
	=	3676.391	/	3797.946
	=	0.968

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 + 4031.875))	/	(0 / (0 + 7597.601))
	=	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)
	=	(284.974 / 3676.391)	/	(203.091 / 3797.946)
	=	0.077515	/	0.053474
	=	1.4496

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)
	=	((1379.6 + 2083.509) / 16420.04)	/	((12.517 + 1133.56) / 13304.816)
	=	0.210907	/	0.08614
	=	2.4484

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
	=	(980.575 - 0	-	1323.999)	/	16420.04
	=	-0.020915

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.

Asia-Potash International Investment (Guangzhou) Co has a M-score of -3.12 suggests that the company is unlikely to be a manipulator.

Asia-Potash International Investment (Guangzhou) Co Beneish M-Score Related Terms

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Asia-Potash International Investment (Guangzhou) Co (SZSE:000893) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Asia-Potash International Investment (Guangzhou) Co Ltd (SZSE:000893) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1166 Xin Gang East Road, 19th Floor, South Tower, International Commerce Place, Guangzhou, CHN, 510330

Website

http://www.dongling.cn

Asia-Potash International Investment (Guangzhou) Co Ltd, formerly Donlinks International Investment Co Ltd is primarily involved in the grain trading activities. It trades in corns, sorghums, feeds barleys, DDGs, and others. Further, it is also engaged in the business of overseas dry bulk carriers such as coal and iron ore and provides logistics solution. The business activities are carried out through China.

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