Hengdian Entertainment Co (SHSE:603103) Beneish M-Score : -3.19 (As of May. 24, 2024)

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What is Hengdian Entertainment Co 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 -3.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SHSE:603103' s Beneish M-Score Range Over the Past 10 Years
Min: -21.52 Med: -3.15 Max: 2.91
Current: -3.19

During the past 11 years, the highest Beneish M-Score of Hengdian Entertainment Co was 2.91. The lowest was -21.52. And the median was -3.15.

Hengdian Entertainment Co Beneish M-Score Historical Data

The historical data trend for Hengdian Entertainment Co'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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Hengdian Entertainment Co Beneish M-Score Chart

Hengdian Entertainment Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.76

-3.68

-4.09

-4.39

-3.73

Hengdian Entertainment Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-5.14	-4.97	-2.91	-3.73	-3.19

Competitive Comparison of Hengdian Entertainment Co's Beneish M-Score

For the Entertainment subindustry, Hengdian Entertainment Co'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.

Hengdian Entertainment Co's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Hengdian Entertainment Co's Beneish M-Score distribution charts can be found below:

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

Hengdian Entertainment Co 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 Hengdian Entertainment Co 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 * 0.9905

0.528 * -0.2433

0.404 * 0.8356

0.892 * 1.6445

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7513

4.679 * -0.130276

0.327 * 0.9717

-3.19

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥528 Mil.
Revenue was 842.412 + 395.73 + 781.493 + 429.496 = ¥2,449 Mil.
Gross Profit was 257.013 + -25.857 + 141.018 + -14.126 = ¥358 Mil.
Total Current Assets was ¥2,164 Mil.
Total Assets was ¥5,029 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,051 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥43 Mil.
Total Current Liabilities was ¥1,615 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,702 Mil.
Net Income was 218.684 + -70.02 + 123.013 + -36.488 = ¥235 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 460.179 + 43.795 + 276.594 + 109.808 = ¥890 Mil.

Total Receivables was ¥324 Mil.
Revenue was 742.205 + 201.294 + 392.702 + 153.07 = ¥1,489 Mil.
Gross Profit was 228.153 + -142.339 + -17.874 + -120.918 = ¥-53 Mil.
Total Current Assets was ¥1,505 Mil.
Total Assets was ¥4,691 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,277 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥35 Mil.
Total Current Liabilities was ¥1,360 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,825 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)
	=	(527.91 / 2449.131)	/	(324.079 / 1489.271)
	=	0.21555	/	0.217609
	=	0.9905

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)
	=	(-52.978 / 1489.271)	/	(358.048 / 2449.131)
	=	-0.035573	/	0.146194
	=	-0.2433

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 - (2163.604 + 2050.512) / 5029.212)	/	(1 - (1504.7 + 2276.797) / 4691.395)
	=	0.162072	/	0.19395
	=	0.8356

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
	=	2449.131	/	1489.271
	=	1.6445

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 + 2276.797))	/	(0 / (0 + 2050.512))
	=	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)
	=	(42.652 / 2449.131)	/	(34.52 / 1489.271)
	=	0.017415	/	0.023179
	=	0.7513

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)
	=	((1701.811 + 1615.495) / 5029.212)	/	((1824.997 + 1359.768) / 4691.395)
	=	0.659608	/	0.678852
	=	0.9717

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
	=	(235.189 - 0	-	890.376)	/	5029.212
	=	-0.130276

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.

Hengdian Entertainment Co has a M-score of -3.19 suggests that the company is unlikely to be a manipulator.

Hengdian Entertainment Co Beneish M-Score Related Terms

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Hengdian Entertainment Co (SHSE:603103) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Hengdian Entertainment Co Ltd (SHSE:603103) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Hengdian Film and Television Industry Experimental Zone, Business Building, Hengdian Town, Zhejiang Province, Dongyang, CHN, 322118

Website

http://www.hengdianfilm.com

Hengdian Entertainment Co Ltd operates as a film production company. It offers film production, film marketing and other services. The activities are carried out through the region of China.

Hengdian Entertainment Co (SHSE:603103) Headlines

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