Shenzhen Inovance Technology Co (SZSE:300124) Beneish M-Score : -1.87 (As of May. 03, 2024)

View and export this data going back to 2010. Start your Free Trial

What is Shenzhen Inovance Technology 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 -1.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Shenzhen Inovance Technology Co's Beneish M-Score or its related term are showing as below:

SZSE:300124' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75 Med: -1.87 Max: -0.89
Current: -1.87

During the past 13 years, the highest Beneish M-Score of Shenzhen Inovance Technology Co was -0.89. The lowest was -2.75. And the median was -1.87.

Shenzhen Inovance Technology Co Beneish M-Score Historical Data

The historical data trend for Shenzhen Inovance Technology 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.

Shenzhen Inovance Technology Co Beneish M-Score Chart

Shenzhen Inovance Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.75

-1.91

-1.82

-2.08

-1.92

Shenzhen Inovance Technology 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															-2.23	-2.22	-1.96	-1.92	-1.87

Competitive Comparison of Shenzhen Inovance Technology Co's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Shenzhen Inovance Technology 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.

Shenzhen Inovance Technology Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shenzhen Inovance Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shenzhen Inovance Technology Co's Beneish M-Score falls into.

Shenzhen Inovance Technology 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 Shenzhen Inovance Technology 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 * 1.0952

0.528 * 1.0627

0.404 * 0.9994

0.892 * 1.3963

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0712

4.679 * 0.033234

0.327 * 1.0287

-1.87

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥14,866 Mil.
Revenue was 6492.396 + 10298.721 + 7670.316 + 7669.158 = ¥32,131 Mil.
Gross Profit was 2248.626 + 3005.704 + 2683.282 + 2770.273 = ¥10,708 Mil.
Total Current Assets was ¥32,762 Mil.
Total Assets was ¥50,684 Mil.
Property, Plant and Equipment(Net PPE) was ¥6,947 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥2,423 Mil.
Total Current Liabilities was ¥20,230 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2,621 Mil.
Net Income was 811.139 + 1422.496 + 1242.444 + 1329.771 = ¥4,806 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 27.199 + 1921.196 + 700.353 + 472.653 = ¥3,121 Mil.

Total Receivables was ¥9,722 Mil.
Revenue was 4781.73 + 6767.376 + 5844.383 + 5618.378 = ¥23,012 Mil.
Gross Profit was 1745.97 + 2213.984 + 2059.766 + 2129.724 = ¥8,149 Mil.
Total Current Assets was ¥26,275 Mil.
Total Assets was ¥40,115 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,148 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥1,620 Mil.
Total Current Liabilities was ¥15,237 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2,345 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)
	=	(14866.425 / 32130.591)	/	(9721.534 / 23011.867)
	=	0.462688	/	0.422457
	=	1.0952

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)
	=	(8149.444 / 23011.867)	/	(10707.885 / 32130.591)
	=	0.354141	/	0.333261
	=	1.0627

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 - (32762.315 + 6946.783) / 50684.227)	/	(1 - (26275.348 + 5148.315) / 40115.087)
	=	0.216539	/	0.216662
	=	0.9994

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
	=	32130.591	/	23011.867
	=	1.3963

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 + 5148.315))	/	(0 / (0 + 6946.783))
	=	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)
	=	(2422.705 / 32130.591)	/	(1619.738 / 23011.867)
	=	0.075402	/	0.070387
	=	1.0712

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)
	=	((2621.474 + 20229.503) / 50684.227)	/	((2345.093 + 15236.956) / 40115.087)
	=	0.45085	/	0.43829
	=	1.0287

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
	=	(4805.85 - 0	-	3121.401)	/	50684.227
	=	0.033234

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.

Shenzhen Inovance Technology Co has a M-score of -1.87 suggests that the company is unlikely to be a manipulator.

Shenzhen Inovance Technology Co Beneish M-Score Related Terms

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

Shenzhen Inovance Technology Co (SZSE:300124) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shenzhen Inovance Technology Co Ltd (SZSE:300124) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Liuxian Road No. 70, Building E, Hongwei Industrial Park, Baocheng District, Shenzhen, CHN, 518101

Website

http://www.inovance.cn

Founded in 2003 by a group of ex-engineers from Huawei and Emerson, Shenzhen Inovance Technology develops and manufactures components used in elevators, automation equipment, robots, new energy vehicles, and railways. A partial list of products includes variable frequency drives--also known as inverters--servo systems, sensors, interfaces and motor controllers. Inovance employs about 20,000 staff, including over 4,700 research and development engineers. About 95% of Inovance's sales are made in China. Its headquarters are in Shenzhen with a large regional office in Suzhou, and these major offices are supported by over 10 branches across China.

Shenzhen Inovance Technology Co (SZSE:300124) Headlines

No Headlines