Jimu Group (HKSE:08187) Beneish M-Score : -1.09 (As of May. 14, 2024)

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What is Jimu 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.

Warning Sign:

Beneish M-Score -1.09 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:08187' s Beneish M-Score Range Over the Past 10 Years
Min: -6.08 Med: -0.25 Max: 7.08
Current: -1.09

During the past 11 years, the highest Beneish M-Score of Jimu Group was 7.08. The lowest was -6.08. And the median was -0.25.

Jimu Group Beneish M-Score Historical Data

The historical data trend for Jimu 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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Jimu Group Beneish M-Score Chart

Jimu Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-6.08

-1.64

7.08

2.93

-1.09

Jimu Group 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															2.93	-	-	-	-1.09

Competitive Comparison of Jimu Group's Beneish M-Score

For the Footwear & Accessories subindustry, Jimu 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.

Jimu Group's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

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

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

Jimu 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 Jimu 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 * 2.1622

0.528 * 0.3603

0.404 * 0.219

0.892 * 0.9474

0.115 * 0.2704

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.19944

0.327 * 0.4896

-1.09

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$13.31 Mil.
Revenue was HK$28.75 Mil.
Gross Profit was HK$7.56 Mil.
Total Current Assets was HK$28.74 Mil.
Total Assets was HK$30.73 Mil.
Property, Plant and Equipment(Net PPE) was HK$1.88 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.72 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.00 Mil.
Total Current Liabilities was HK$13.45 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.97 Mil.
Net Income was HK$1.54 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-4.59 Mil.

Total Receivables was HK$6.50 Mil.
Revenue was HK$30.34 Mil.
Gross Profit was HK$2.87 Mil.
Total Current Assets was HK$26.51 Mil.
Total Assets was HK$29.57 Mil.
Property, Plant and Equipment(Net PPE) was HK$2.56 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.38 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.00 Mil.
Total Current Liabilities was HK$15.54 Mil.
Long-Term Debt & Capital Lease Obligation was HK$12.80 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)
	=	(13.311 / 28.747)	/	(6.498 / 30.343)
	=	0.46304	/	0.214152
	=	2.1622

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)
	=	(2.873 / 30.343)	/	(7.555 / 28.747)
	=	0.094684	/	0.26281
	=	0.3603

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 - (28.737 + 1.88) / 30.731)	/	(1 - (26.51 + 2.563) / 29.574)
	=	0.00371	/	0.016941
	=	0.219

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
	=	28.747	/	30.343
	=	0.9474

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))
	=	(0.38 / (0.38 + 2.563))	/	(1.718 / (1.718 + 1.88))
	=	0.12912	/	0.477487
	=	0.2704

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)
	=	(0 / 28.747)	/	(0 / 30.343)
	=	0	/	0
	=	1

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)
	=	((0.968 + 13.45) / 30.731)	/	((12.798 + 15.541) / 29.574)
	=	0.469168	/	0.95824
	=	0.4896

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
	=	(1.538 - 0	-	-4.591)	/	30.731
	=	0.19944

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.

Jimu Group has a M-score of -1.09 signals that the company is likely to be a manipulator.

Jimu Group Beneish M-Score Related Terms

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Jimu Group (HKSE:08187) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Jimu Group Ltd (HKSE:08187) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 54-62 Lockhart Road, Unit 06, 12th Floor, The Broadway, Hong Kong, HKG

Website

https://www.jimugroup8187.com

Jimu Group Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the footwear business and the provision of loan facilitation services. The company operates in two segments footwear and apparel businesses which include trading of footwear and apparel, and loan facilitation and credit assessment services which include the provision of pre-loan facilitation services, post-loan facilitation services, and credit assessment services. The company generates the majority of its revenue from footwear and apparel businesses. Geographically, the group has a business presence all over the world.

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