China Mobile (BUE:CHL) Beneish M-Score : -2.71 (As of May. 06, 2024)

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What is China Mobile 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BUE:CHL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.52 Max: -1.65
Current: -2.71

During the past 13 years, the highest Beneish M-Score of China Mobile was -1.65. The lowest was -2.78. And the median was -2.52.

China Mobile Beneish M-Score Historical Data

The historical data trend for China Mobile'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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China Mobile Beneish M-Score Chart

China Mobile Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.65

-2.42

-2.49

China Mobile Quarterly Data
	Jun18	Dec18	Jun19	Dec19	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															-1.90	-2.63	-2.78	-2.49	-2.71

Competitive Comparison of China Mobile's Beneish M-Score

For the Telecom Services subindustry, China Mobile'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.

China Mobile's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, China Mobile's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Mobile's Beneish M-Score falls into.

China Mobile 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 China Mobile 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 * 1.7304

0.528 * 0.9448

0.404 * 0.9772

0.892 * 2.9453

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4843

4.679 * -0.023155

0.327 * 0.9625

-0.29

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ARS10,186,277 Mil.
Revenue was 30850954.315 + 11818070.782 + 11740652.912 + 9382735.219 = ARS63,792,413 Mil.
Gross Profit was 17012732.417 + 18942059.606 + -4167425.649 + 8329052.978 = ARS40,116,419 Mil.
Total Current Assets was ARS65,276,874 Mil.
Total Assets was ARS233,464,395 Mil.
Property, Plant and Equipment(Net PPE) was ARS101,577,902 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS5,632,109 Mil.
Selling, General, & Admin. Expense(SGA) was ARS3,370,724 Mil.
Total Current Liabilities was ARS66,230,690 Mil.
Long-Term Debt & Capital Lease Obligation was ARS7,722,829 Mil.
Net Income was 3463942.581 + 1327674.295 + 1406580.482 + 1612176.39 = ARS7,810,374 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was 6657171.423 + 0 + 3699652.404 + 2859329.181 = ARS13,216,153 Mil.

Total Receivables was ARS1,998,721 Mil.
Revenue was 7188447.525 + 5140622.017 + 4484584.183 + 4845658.555 = ARS21,659,312 Mil.
Gross Profit was 1758194.74 + 8648750.504 + -1764968.813 + 4227383.911 = ARS12,869,360 Mil.
Total Current Assets was ARS14,295,334 Mil.
Total Assets was ARS56,119,722 Mil.
Property, Plant and Equipment(Net PPE) was ARS25,440,142 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS0 Mil.
Selling, General, & Admin. Expense(SGA) was ARS771,039 Mil.
Total Current Liabilities was ARS16,065,713 Mil.
Long-Term Debt & Capital Lease Obligation was ARS2,403,288 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)
	=	(10186277.164 / 63792413.228)	/	(1998721.308 / 21659312.28)
	=	0.159679	/	0.09228
	=	1.7304

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)
	=	(12869360.342 / 21659312.28)	/	(40116419.352 / 63792413.228)
	=	0.594172	/	0.628859
	=	0.9448

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 - (65276874.262 + 101577902.173) / 233464395.265)	/	(1 - (14295333.896 + 25440142.443) / 56119721.839)
	=	0.28531	/	0.291952
	=	0.9772

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
	=	63792413.228	/	21659312.28
	=	2.9453

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 + 25440142.443))	/	(5632109.283 / (5632109.283 + 101577902.173))
	=	0	/	0.052533
	=	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)
	=	(3370724.157 / 63792413.228)	/	(771039.373 / 21659312.28)
	=	0.052839	/	0.035599
	=	1.4843

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)
	=	((7722828.925 + 66230689.787) / 233464395.265)	/	((2403287.568 + 16065712.64) / 56119721.839)
	=	0.316766	/	0.3291
	=	0.9625

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
	=	(7810373.748 - 0	-	13216153.008)	/	233464395.265
	=	-0.023155

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.

China Mobile has a M-score of -0.29 signals that the company is likely to be a manipulator.

China Mobile Beneish M-Score Related Terms

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China Mobile (BUE:CHL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » China Mobile Ltd (BUE:CHL) » Definitions » Beneish M-Score

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941:Mexico 00941:Hong Kong CTM:Germany CTM:Germany CTM:Germany 600941:China

Address

99 Queen’s Road Central, 60th Floor, The Center, Hong Kong, HKG

Website

https://www.chinamobileltd.com

China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (990 million) but also the largest in the world. It has 60% of the total wireless market in China and 45% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 2G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.