Litian Pictures Holdings (HKSE:09958) Beneish M-Score : 5.19 (As of May. 23, 2024)

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What is Litian Pictures Holdings 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 5.19 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:09958' s Beneish M-Score Range Over the Past 10 Years
Min: -3.47 Med: -1.35 Max: 5.19
Current: 5.19

During the past 7 years, the highest Beneish M-Score of Litian Pictures Holdings was 5.19. The lowest was -3.47. And the median was -1.35.

Litian Pictures Holdings Beneish M-Score Historical Data

The historical data trend for Litian Pictures Holdings'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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Litian Pictures Holdings Beneish M-Score Chart

Litian Pictures Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.05

-1.35

-3.47

-1.06

5.19

Litian Pictures Holdings Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial							-3.47	-	-1.06	-	5.19

Competitive Comparison of Litian Pictures Holdings's Beneish M-Score

For the Entertainment subindustry, Litian Pictures Holdings'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.

Litian Pictures Holdings's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Litian Pictures Holdings's Beneish M-Score distribution charts can be found below:

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

Litian Pictures Holdings 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 Litian Pictures Holdings 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 * 0.1674

0.528 * 13.7186

0.404 * 0.3514

0.892 * 4.8057

0.115 * 0.703

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.2778

4.679 * -0.304294

0.327 * 1.2358

5.19

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$140.4 Mil.
Revenue was HK$124.1 Mil.
Gross Profit was HK$-74.0 Mil.
Total Current Assets was HK$777.6 Mil.
Total Assets was HK$789.1 Mil.
Property, Plant and Equipment(Net PPE) was HK$5.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$11.9 Mil.
Total Current Liabilities was HK$749.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3.3 Mil.
Net Income was HK$-170.0 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$70.1 Mil.

Total Receivables was HK$174.6 Mil.
Revenue was HK$25.8 Mil.
Gross Profit was HK$-211.3 Mil.
Total Current Assets was HK$886.1 Mil.
Total Assets was HK$916.5 Mil.
Property, Plant and Equipment(Net PPE) was HK$9.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$8.9 Mil.
Total Current Liabilities was HK$704.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3.0 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)
	=	(140.439 / 124.084)	/	(174.593 / 25.82)
	=	1.131806	/	6.761929
	=	0.1674

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)
	=	(-211.308 / 25.82)	/	(-74.023 / 124.084)
	=	-8.183888	/	-0.596556
	=	13.7186

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 - (777.559 + 5.069) / 789.062)	/	(1 - (886.086 + 9.119) / 916.469)
	=	0.008154	/	0.023202
	=	0.3514

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
	=	124.084	/	25.82
	=	4.8057

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))
	=	(4.592 / (4.592 + 9.119))	/	(4.612 / (4.612 + 5.069))
	=	0.334914	/	0.476397
	=	0.703

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)
	=	(11.876 / 124.084)	/	(8.896 / 25.82)
	=	0.095709	/	0.344539
	=	0.2778

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)
	=	((3.251 + 749.852) / 789.062)	/	((2.982 + 704.796) / 916.469)
	=	0.954428	/	0.772288
	=	1.2358

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
	=	(-170.037 - 0	-	70.07)	/	789.062
	=	-0.304294

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.

Litian Pictures Holdings has a M-score of 5.19 signals that the company is likely to be a manipulator.

Litian Pictures Holdings Beneish M-Score Related Terms

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Litian Pictures Holdings (HKSE:09958) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Litian Pictures Holdings Ltd (HKSE:09958) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 5A, Tongniu Dianying Industrial Park, Chaoyang District, Beijing, CHN

Website

https://www.litian.tv

Litian Pictures Holdings Ltd is a a drama series distribution company in the People's Republic of China. It is engaged in the business of licensing the broadcasting rights of self-produced and outright-purchased drama series. In addition, it is engaged in other businesses, which include selling drama series scripts; acting as a distribution agent of the broadcasting rights of TV series; and investing in drama series in which it acts as a non-executive producer. It operates in three segments namely, Self-produced drama series; Outright-purchased drama series; and Others. It derives all its revenue from production, distribution and licensing of broadcasting rights of drama series in China.

Litian Pictures Holdings (HKSE:09958) Headlines

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