Nsfocus Technologies Group Co (SZSE:300369) Beneish M-Score : -3.72 (As of May. 23, 2024)

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What is Nsfocus Technologies Group 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 -3.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Nsfocus Technologies Group Co's Beneish M-Score or its related term are showing as below:

SZSE:300369' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24 Med: -2.27 Max: 0.8
Current: -3.72

During the past 13 years, the highest Beneish M-Score of Nsfocus Technologies Group Co was 0.80. The lowest was -4.24. And the median was -2.27.

Nsfocus Technologies Group Co Beneish M-Score Historical Data

The historical data trend for Nsfocus Technologies Group 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.

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Nsfocus Technologies Group Co Beneish M-Score Chart

Nsfocus Technologies Group Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.54

-2.52

-1.83

-2.44

-3.46

Nsfocus Technologies Group 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															-2.22	-2.30	-2.70	-3.46	-3.72

Competitive Comparison of Nsfocus Technologies Group Co's Beneish M-Score

For the Software - Infrastructure subindustry, Nsfocus Technologies Group 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.

Nsfocus Technologies Group Co's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Nsfocus Technologies Group Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Nsfocus Technologies Group Co's Beneish M-Score falls into.

Nsfocus Technologies Group 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 Nsfocus Technologies Group 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 * 1.1616

0.528 * 1.3521

0.404 * 1.1964

0.892 * 0.6494

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4766

4.679 * -0.229252

0.327 * 1.5624

-3.72

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥1,367 Mil.
Revenue was 356.986 + 474.05 + 494.688 + 382.972 = ¥1,709 Mil.
Gross Profit was 215.943 + 115.125 + 299.409 + 155.349 = ¥786 Mil.
Total Current Assets was ¥2,332 Mil.
Total Assets was ¥4,024 Mil.
Property, Plant and Equipment(Net PPE) was ¥267 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥904 Mil.
Total Current Liabilities was ¥1,286 Mil.
Long-Term Debt & Capital Lease Obligation was ¥29 Mil.
Net Income was -150.11 + -452.819 + -109.315 + -233.502 = ¥-946 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 26.927 + 32.918 + 16.232 + -99.217 = ¥-23 Mil.

Total Receivables was ¥1,812 Mil.
Revenue was 329.074 + 1241.123 + 553.336 + 507.826 = ¥2,631 Mil.
Gross Profit was 205.747 + 794.802 + 341.945 + 293.725 = ¥1,636 Mil.
Total Current Assets was ¥2,868 Mil.
Total Assets was ¥4,542 Mil.
Property, Plant and Equipment(Net PPE) was ¥329 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥943 Mil.
Total Current Liabilities was ¥917 Mil.
Long-Term Debt & Capital Lease Obligation was ¥34 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)
	=	(1367.005 / 1708.696)	/	(1812.304 / 2631.359)
	=	0.800028	/	0.688733
	=	1.1616

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)
	=	(1636.219 / 2631.359)	/	(785.826 / 1708.696)
	=	0.621815	/	0.459898
	=	1.3521

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 - (2332.031 + 267.397) / 4024.422)	/	(1 - (2868.401 + 329.442) / 4542.078)
	=	0.354087	/	0.295952
	=	1.1964

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
	=	1708.696	/	2631.359
	=	0.6494

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 + 329.442))	/	(0 / (0 + 267.397))
	=	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)
	=	(904.101 / 1708.696)	/	(942.932 / 2631.359)
	=	0.529118	/	0.358344
	=	1.4766

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)
	=	((29.368 + 1286.339) / 4024.422)	/	((33.806 + 916.626) / 4542.078)
	=	0.326931	/	0.20925
	=	1.5624

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
	=	(-945.746 - 0	-	-23.14)	/	4024.422
	=	-0.229252

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.

Nsfocus Technologies Group Co has a M-score of -3.72 suggests that the company is unlikely to be a manipulator.

Nsfocus Technologies Group Co Beneish M-Score Related Terms

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Nsfocus Technologies Group Co (SZSE:300369) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Nsfocus Technologies Group Co Ltd (SZSE:300369) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 4 Beibei Road, 5th Floor, Yitai Building, Haidian District, Beijing, CHN, 100089

Website

https://www.nsfocusglobal.com

Nsfocus Technologies Group Co Ltd is a China based internet and application security company. It offers enterprise-level network security solutions and services. The products offered by the company are Anti-DDoS system, Cloud DDoS protection service, Threat intelligence subscription service, Web application firewall, and Web vulnerability scanning system. In addition, it also offers solutions such as cloud DDoS defenses, on-premises DDoS defenses, Hybrid DDoS defenses, global threat intelligence, among others. The company has a business presence in China and other international countries.

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