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Xiaomi (HKSE:01810) Beneish M-Score : -2.88 (As of May. 12, 2024)


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What is Xiaomi 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01810' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.31   Max: -1.88
Current: -2.88

During the past 9 years, the highest Beneish M-Score of Xiaomi was -1.88. The lowest was -2.88. And the median was -2.31.


Xiaomi Beneish M-Score Historical Data

The historical data trend for Xiaomi'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.

Xiaomi Beneish M-Score Chart

Xiaomi Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -2.78 -2.42 -2.09 -2.20 -2.88

Xiaomi Quarterly Data
Mar19 Jun19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.20 -2.70 -2.77 -2.98 -2.88

Competitive Comparison of Xiaomi's Beneish M-Score

For the Consumer Electronics subindustry, Xiaomi'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.


Xiaomi's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Xiaomi's Beneish M-Score distribution charts can be found below:

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



Xiaomi 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 Xiaomi for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1793+0.528 * 0.8021+0.404 * 0.9087+0.892 * 0.9149+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9536+4.679 * -0.072596-0.327 * 1.0378
=-2.88

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was HK$46,079 Mil.
Revenue was 80112.398 + 76048.85 + 73671.488 + 67744.153 = HK$297,577 Mil.
Gross Profit was 17078.203 + 17280.981 + 15489.044 + 13202.736 = HK$63,051 Mil.
Total Current Assets was HK$217,720 Mil.
Total Assets was HK$354,655 Mil.
Property, Plant and Equipment(Net PPE) was HK$18,180 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$26,745 Mil.
Total Current Liabilities was HK$126,427 Mil.
Long-Term Debt & Capital Lease Obligation was HK$25,080 Mil.
Net Income was 5170.837 + 5228.219 + 4014.147 + 4788.151 = HK$19,201 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 8542.974 + 14296.992 + 20719.758 + 1388.163 = HK$44,948 Mil.
Total Receivables was HK$42,707 Mil.
Revenue was 73756.068 + 78806.286 + 82254.161 + 90441.341 = HK$325,258 Mil.
Gross Profit was 12705.422 + 13107.764 + 13794.467 + 15670.933 = HK$55,279 Mil.
Total Current Assets was HK$179,138 Mil.
Total Assets was HK$305,430 Mil.
Property, Plant and Equipment(Net PPE) was HK$13,742 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$30,657 Mil.
Total Current Liabilities was HK$100,088 Mil.
Long-Term Debt & Capital Lease Obligation was HK$25,638 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)
=(46078.775 / 297576.889) / (42706.667 / 325257.856)
=0.154847 / 0.131301
=1.1793

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)
=(55278.586 / 325257.856) / (63050.964 / 297576.889)
=0.169953 / 0.211881
=0.8021

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 - (217719.64 + 18180.085) / 354655.003) / (1 - (179137.563 + 13742.468) / 305429.528)
=0.334847 / 0.368496
=0.9087

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
=297576.889 / 325257.856
=0.9149

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 + 13742.468)) / (0 / (0 + 18180.085))
=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)
=(26745.488 / 297576.889) / (30656.777 / 325257.856)
=0.089878 / 0.094254
=0.9536

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)
=((25080.485 + 126427.272) / 354655.003) / ((25637.533 + 100088.385) / 305429.528)
=0.427198 / 0.411636
=1.0378

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
=(19201.354 - 0 - 44947.887) / 354655.003
=-0.072596

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.

Xiaomi has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.


Xiaomi (HKSE:01810) Business Description

Address
Anningzhuang Road, Xiaomi Campus, Haidian District, Beijing, CHN
Xiaomi is a technology product and services company founded in early 2010, focusing mainly on smartphones and Internet of Things products and related internet services. An early adopter of online smartphone sales, Xiaomi uses Android as its operating system but has its own customized user interface called MIUI. As competition in its home Chinese smartphone market intensified and growth has slowed, it has expanded into other markets and has become the smartphone market leader in India and is gaining market share in Europe. From 2020 to 2022, from a country perspective, around 50% of its overall revenue was generated in mainland China, down from 94% in 2015. The company listed on the Hong Kong market at the beginning of July 2018.

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