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Pak Tak International (HKSE:02668) Beneish M-Score : -4.00 (As of Jun. 09, 2024)


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What is Pak Tak International 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 -4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02668' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Med: -1.97   Max: 5.93
Current: -4

During the past 13 years, the highest Beneish M-Score of Pak Tak International was 5.93. The lowest was -4.00. And the median was -1.97.


Pak Tak International Beneish M-Score Historical Data

The historical data trend for Pak Tak International'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.

Pak Tak International Beneish M-Score Chart

Pak Tak International Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.19 -1.69 -2.03 -1.91 -4.00

Pak Tak International Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 -2.03 - -1.91 - -4.00

Competitive Comparison of Pak Tak International's Beneish M-Score

For the Apparel Manufacturing subindustry, Pak Tak International'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.


Pak Tak International's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Pak Tak International's Beneish M-Score distribution charts can be found below:

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



Pak Tak International 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 Pak Tak International 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 * 1.2079+0.528 * 1.1065+0.404 * 1.1378+0.892 * 0.5582+0.115 * 0.4834
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8096+4.679 * -0.26004-0.327 * 1.0483
=-4.00

* 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$491.5 Mil.
Revenue was HK$427.8 Mil.
Gross Profit was HK$38.6 Mil.
Total Current Assets was HK$622.3 Mil.
Total Assets was HK$948.2 Mil.
Property, Plant and Equipment(Net PPE) was HK$36.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$14.1 Mil.
Selling, General, & Admin. Expense(SGA) was HK$43.6 Mil.
Total Current Liabilities was HK$498.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$41.6 Mil.
Net Income was HK$-201.7 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$44.8 Mil.
Total Receivables was HK$729.0 Mil.
Revenue was HK$766.3 Mil.
Gross Profit was HK$76.5 Mil.
Total Current Assets was HK$865.7 Mil.
Total Assets was HK$1,327.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$105.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$16.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$43.2 Mil.
Total Current Liabilities was HK$668.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$52.9 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)
=(491.511 / 427.766) / (728.95 / 766.302)
=1.149018 / 0.951257
=1.2079

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)
=(76.49 / 766.302) / (38.589 / 427.766)
=0.099817 / 0.090211
=1.1065

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 - (622.283 + 36.092) / 948.24) / (1 - (865.686 + 105.372) / 1327.807)
=0.305687 / 0.268675
=1.1378

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
=427.766 / 766.302
=0.5582

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))
=(16.561 / (16.561 + 105.372)) / (14.103 / (14.103 + 36.092))
=0.13582 / 0.280964
=0.4834

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)
=(43.612 / 427.766) / (43.174 / 766.302)
=0.101953 / 0.056341
=1.8096

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)
=((41.648 + 498.67) / 948.24) / ((52.85 + 668.904) / 1327.807)
=0.569811 / 0.543568
=1.0483

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
=(-201.747 - 0 - 44.833) / 948.24
=-0.26004

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.

Pak Tak International has a M-score of -4.00 suggests that the company is unlikely to be a manipulator.


Pak Tak International Beneish M-Score Related Terms

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Pak Tak International (HKSE:02668) Business Description

Traded in Other Exchanges
N/A
Address
No. 89 Queensway, Unit 1902, 19th Floor, Tower 2, Lippo Centre, Hong Kong, HKG
Pak Tak International Ltd is an investment holding company. The company and its subsidiaries are engaged in operating in four business segments; the Money lending business segment, the Hotel management and catering segment, the Leasing business segment, and the Supply chain business segment. Geographically, it derives a majority of its revenue from the People's Republic of China.
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