Next Technology Holding (Next Technology Holding) Beneish M-Score : -2.87 (As of May. 13, 2024)

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What is Next Technology Holding 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NXTT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.19 Med: -2.87 Max: 0.67
Current: -2.87

During the past 5 years, the highest Beneish M-Score of Next Technology Holding was 0.67. The lowest was -5.19. And the median was -2.87.

Next Technology Holding Beneish M-Score Historical Data

The historical data trend for Next Technology Holding'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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Next Technology Holding Beneish M-Score Chart

Next Technology Holding Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

0.67

-5.19

-2.87

Next Technology Holding Quarterly Data
	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														-5.19	63.22	83.14	-3.01	-2.87

Competitive Comparison of Next Technology Holding's Beneish M-Score

For the Software - Application subindustry, Next Technology Holding'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.

Next Technology Holding's Beneish M-Score Distribution in the Software Industry

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

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

Next Technology Holding 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 Next Technology Holding 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 * 1.3214

0.528 * 2.4448

0.404 * 0

0.892 * 0.9045

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6182

4.679 * -0.239466

0.327 * 0.7176

-2.87

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $6.94 Mil.
Revenue was 0.999 + 1.634 + 0 + 0.614 = $3.25 Mil.
Gross Profit was 0.2 + 1.235 + -0.095 + -0.296 = $1.04 Mil.
Total Current Assets was $54.94 Mil.
Total Assets was $54.94 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $4.99 Mil.
Total Current Liabilities was $4.04 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 11.118 + -14.1 + 0.026 + -2.225 = $-5.18 Mil.
Non Operating Income was 12.865 + -13.995 + 0.975 + 0.002 = $-0.15 Mil.
Cash Flow from Operations was -0.755 + 3.644 + 5.792 + -0.553 = $8.13 Mil.

Total Receivables was $5.81 Mil.
Revenue was 0 + 0 + 1.451 + 2.139 = $3.59 Mil.
Gross Profit was 0 + 0 + 1.356 + 1.466 = $2.82 Mil.
Total Current Assets was $47.02 Mil.
Total Assets was $47.02 Mil.
Property, Plant and Equipment(Net PPE) was $0.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General, & Admin. Expense(SGA) was $8.93 Mil.
Total Current Liabilities was $4.82 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(6.939 / 3.247)	/	(5.806 / 3.59)
	=	2.13705	/	1.61727
	=	1.3214

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)
	=	(2.822 / 3.59)	/	(1.044 / 3.247)
	=	0.786072	/	0.321528
	=	2.4448

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 - (54.939 + 0) / 54.939)	/	(1 - (47.017 + 0.992) / 47.017)
	=	0	/	-0.021099
	=	0

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
	=	3.247	/	3.59
	=	0.9045

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))
	=	(0.278 / (0.278 + 0.992))	/	(0 / (0 + 0))
	=	0.218898	/
	=	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)
	=	(4.992 / 3.247)	/	(8.928 / 3.59)
	=	1.537419	/	2.486908
	=	0.6182

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 + 4.038) / 54.939)	/	((0 + 4.816) / 47.017)
	=	0.0735	/	0.102431
	=	0.7176

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
	=	(-5.181 - -0.153	-	8.128)	/	54.939
	=	-0.239466

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.

Next Technology Holding has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

Next Technology Holding Beneish M-Score Related Terms

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Next Technology Holding (Next Technology Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Next Technology Holding Inc (NAS:NXTT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 18, Kechuang 10th Street, Room 101, Level 1 Building 8, Beijing Economic and Technological, Development Zone, Beijing, CHN, 100020

Website

https://www.wetradegroup.net

WeTrade Group Inc is engaged in providing technical services and solutions via its membership-based social e-commerce platform and chatGPT technical services. The company provides technology services to both individual and corporate users. It offers an international cloud-based intelligence system and independently developed a micro-business cloud intelligence system called the YCloud. The company also serves tourism, hospitality, livestreaming and short video, medical beauty, and traditional retail industries.

Executives

Biming Guo	director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, BEIJING F4 100020
Kean Tat Che	director, officer: CFO and Executive Director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Yuxing Ye	director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Donghui Wang	director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Ning Qin	director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Pijun Liu	director, 10 percent owner, officer: CEO and Executive Director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Zhuo Li	director, officer: COO and Executive Director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Daxue Li	director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Zheng Dai	director, 10 percent owner, officer: Chairman and Exec. Director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Hung Fai Choi	director	NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000