17 Education & Technology Group (17 Education & Technology Group) Beneish M-Score : -3.02 (As of May. 12, 2024)

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What is 17 Education & Technology Group 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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for 17 Education & Technology Group's Beneish M-Score or its related term are showing as below:

YQ' s Beneish M-Score Range Over the Past 10 Years
Min: -5.05 Med: -3.02 Max: 3.13
Current: -3.02

During the past 6 years, the highest Beneish M-Score of 17 Education & Technology Group was 3.13. The lowest was -5.05. And the median was -3.02.

17 Education & Technology Group Beneish M-Score Historical Data

The historical data trend for 17 Education & Technology Group'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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17 Education & Technology Group Beneish M-Score Chart

17 Education & Technology Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-5.05

3.13

-3.02

17 Education & Technology Group Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial														3.13	-4.67	-0.52	10.10	-3.02

Competitive Comparison of 17 Education & Technology Group's Beneish M-Score

For the Education & Training Services subindustry, 17 Education & Technology Group'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.

17 Education & Technology Group's Beneish M-Score Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, 17 Education & Technology Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where 17 Education & Technology Group's Beneish M-Score falls into.

17 Education & Technology Group 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 17 Education & Technology Group 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 * 3.7703

0.528 * 1.2955

0.404 * 0.7949

0.892 * 0.2972

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.7188

4.679 * -0.462673

0.327 * 1.2295

-3.02

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $8.36 Mil.
Revenue was 6.631 + 6.179 + 9.669 + 1.346 = $23.83 Mil.
Gross Profit was 2.881 + 3.342 + 4.675 + 0.328 = $11.23 Mil.
Total Current Assets was $88.34 Mil.
Total Assets was $95.87 Mil.
Property, Plant and Equipment(Net PPE) was $7.29 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $35.91 Mil.
Total Current Liabilities was $25.29 Mil.
Long-Term Debt & Capital Lease Obligation was $1.35 Mil.
Net Income was -13.787 + -9.986 + -6.692 + -13.429 = $-43.89 Mil.
Non Operating Income was -0.278 + -0.051 + 0.25 + 0.541 = $0.46 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0.00 Mil.

Total Receivables was $7.46 Mil.
Revenue was 5.674 + 17.746 + 19.938 + 36.794 = $80.15 Mil.
Gross Profit was 2.957 + 13.229 + 10.413 + 22.328 = $48.93 Mil.
Total Current Assets was $131.01 Mil.
Total Assets was $140.64 Mil.
Property, Plant and Equipment(Net PPE) was $9.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $44.43 Mil.
Total Current Liabilities was $30.71 Mil.
Long-Term Debt & Capital Lease Obligation was $1.08 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)
	=	(8.364 / 23.825)	/	(7.463 / 80.152)
	=	0.35106	/	0.093111
	=	3.7703

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)
	=	(48.927 / 80.152)	/	(11.226 / 23.825)
	=	0.610428	/	0.471186
	=	1.2955

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 - (88.335 + 7.288) / 95.869)	/	(1 - (131.012 + 9.177) / 140.643)
	=	0.002566	/	0.003228
	=	0.7949

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
	=	23.825	/	80.152
	=	0.2972

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 + 9.177))	/	(0 / (0 + 7.288))
	=	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)
	=	(35.905 / 23.825)	/	(44.428 / 80.152)
	=	1.50703	/	0.554297
	=	2.7188

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)
	=	((1.353 + 25.293) / 95.869)	/	((1.081 + 30.714) / 140.643)
	=	0.277942	/	0.226069
	=	1.2295

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
	=	(-43.894 - 0.462	-	0)	/	95.869
	=	-0.462673

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.

17 Education & Technology Group has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.

17 Education & Technology Group Beneish M-Score Related Terms

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17 Education & Technology Group (17 Education & Technology Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » 17 Education & Technology Group Inc (NAS:YQ) » Definitions » Beneish M-Score

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Address

Wangjing Greenland Center, 16th Floor, Block B, Chaoyang District, Beijing, CHN, 100102

Website

https://ucenter.17zuoye.com

17 Education & Technology Group Inc is an education technology company in China. It offers to assist students, teachers, schoolmasters, and educational authorities across China to achieve data-driven teaching, learning, and assessment. Geographically group operates in China.