Tian Ruixiang Holdings (Tian Ruixiang Holdings) Beneish M-Score : 40.21 (As of May. 06, 2024)

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What is Tian Ruixiang Holdings 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 40.21 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Tian Ruixiang Holdings's Beneish M-Score or its related term are showing as below:

TIRX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03 Med: 1.22 Max: 40.21
Current: 40.21

During the past 6 years, the highest Beneish M-Score of Tian Ruixiang Holdings was 40.21. The lowest was -3.03. And the median was 1.22.

Tian Ruixiang Holdings Beneish M-Score Historical Data

The historical data trend for Tian Ruixiang Holdings'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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Tian Ruixiang Holdings Beneish M-Score Chart

Tian Ruixiang Holdings Annual Data

Trend

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Beneish M-Score

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-3.03

1.21

1.23

40.21

Tian Ruixiang Holdings Semi-Annual Data
	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23
Beneish M-Score	Get a 7-Day Free Trial							-	1.23	-	40.21	-

Competitive Comparison of Tian Ruixiang Holdings's Beneish M-Score

For the Insurance Brokers subindustry, Tian Ruixiang Holdings'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.

Tian Ruixiang Holdings's Beneish M-Score Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Tian Ruixiang Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tian Ruixiang Holdings's Beneish M-Score falls into.

Tian Ruixiang Holdings 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 Tian Ruixiang Holdings 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 * 50.258

0.528 * -0.6659

0.404 * 0.0029

0.892 * 0.4844

0.115 * 0.4302

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.8169

4.679 * -0.123748

0.327 * 1.3158

40.21

This Year (Oct22) TTM:

Last Year (Oct21) TTM:

Total Receivables was $7.82 Mil.
Revenue was $1.35 Mil.
Gross Profit was $-1.34 Mil.
Total Current Assets was $34.86 Mil.
Total Assets was $35.03 Mil.
Property, Plant and Equipment(Net PPE) was $0.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.21 Mil.
Selling, General, & Admin. Expense(SGA) was $3.61 Mil.
Total Current Liabilities was $1.49 Mil.
Long-Term Debt & Capital Lease Obligation was $0.06 Mil.
Net Income was $-4.68 Mil.
Gross Profit was $-0.15 Mil.
Cash Flow from Operations was $-0.20 Mil.

Total Receivables was $0.32 Mil.
Revenue was $2.79 Mil.
Gross Profit was $1.84 Mil.
Total Current Assets was $31.63 Mil.
Total Assets was $40.35 Mil.
Property, Plant and Equipment(Net PPE) was $0.77 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.26 Mil.
Selling, General, & Admin. Expense(SGA) was $4.10 Mil.
Total Current Liabilities was $1.12 Mil.
Long-Term Debt & Capital Lease Obligation was $0.24 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)
	=	(7.815 / 1.352)	/	(0.321 / 2.791)
	=	5.780325	/	0.115013
	=	50.258

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)
	=	(1.842 / 2.791)	/	(-1.34 / 1.352)
	=	0.659979	/	-0.991124
	=	-0.6659

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 - (34.859 + 0.152) / 35.031)	/	(1 - (31.63 + 0.771) / 40.35)
	=	0.000571	/	0.197001
	=	0.0029

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
	=	1.352	/	2.791
	=	0.4844

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))
	=	(0.255 / (0.255 + 0.771))	/	(0.208 / (0.208 + 0.152))
	=	0.248538	/	0.577778
	=	0.4302

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)
	=	(3.605 / 1.352)	/	(4.096 / 2.791)
	=	2.66642	/	1.467574
	=	1.8169

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)
	=	((0.055 + 1.494) / 35.031)	/	((0.238 + 1.118) / 40.35)
	=	0.044218	/	0.033606
	=	1.3158

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
	=	(-4.684 - -0.15	-	-0.199)	/	35.031
	=	-0.123748

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.

Tian Ruixiang Holdings has a M-score of 40.21 signals that the company is likely to be a manipulator.

Tian Ruixiang Holdings Beneish M-Score Related Terms

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Tian Ruixiang Holdings (Tian Ruixiang Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Tian Ruixiang Holdings Ltd (NAS:TIRX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

North East Third Ring Road, Room 1001, 10 / F, No. 25, Chaoyang District, Beijing, CHN

Website

http://www.tianrx.com

Tian Ruixiang Holdings Ltd is an Insurance Brokerage firm. It distributes a wide range of insurance products, which are categorized into two groups; property and casualty insurance, such as commercial property insurance, liability insurance, accidental insurance, and automobile insurance; and other insurances, such as health insurance, life insurance, and miscellaneous insurances. It also generates a small amount of revenue from risk management services. The firm act on behalf of its customers seeking insurance coverage from insurance companies. It generates revenue from the provision of insurance brokerage services.