China Vanke Co (SZSE:000002) Beneish M-Score : -2.23 (As of Apr. 27, 2024)

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What is China Vanke 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 -2.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SZSE:000002' s Beneish M-Score Range Over the Past 10 Years
Min: -2.43 Med: -2.24 Max: -1.89
Current: -2.23

During the past 13 years, the highest Beneish M-Score of China Vanke Co was -1.89. The lowest was -2.43. And the median was -2.24.

China Vanke Co Beneish M-Score Historical Data

The historical data trend for China Vanke 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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China Vanke Co Beneish M-Score Chart

China Vanke Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.43

-2.27

-2.17

-2.25

-2.23

China Vanke Co 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															-2.25	-2.29	-2.24	-2.31	-2.23

Competitive Comparison of China Vanke Co's Beneish M-Score

For the Real Estate - Development subindustry, China Vanke 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.

China Vanke Co's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China Vanke Co's Beneish M-Score distribution charts can be found below:

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

China Vanke 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 China Vanke 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 * 1.0249

0.528 * 1.2835

0.404 * 1.2101

0.892 * 0.9244

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8872

4.679 * 0.005483

0.327 * 0.9514

-2.23

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ¥275,820 Mil.
Revenue was 175430.585 + 89415.901 + 132418.583 + 68474.007 = ¥465,739 Mil.
Gross Profit was 19917.12 + 13136.681 + 27324.012 + 10577.403 = ¥70,955 Mil.
Total Current Assets was ¥1,150,260 Mil.
Total Assets was ¥1,504,850 Mil.
Property, Plant and Equipment(Net PPE) was ¥41,727 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥18,039 Mil.
Total Current Liabilities was ¥821,785 Mil.
Long-Term Debt & Capital Lease Obligation was ¥277,280 Mil.
Net Income was -1458.793 + 3751.005 + 8424.661 + 1445.811 = ¥12,163 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 3677 + -1629.176 + -5136.801 + 7001.3 = ¥3,912 Mil.

Total Receivables was ¥291,133 Mil.
Revenue was 166165.126 + 130756.952 + 144249.215 + 62667.075 = ¥503,838 Mil.
Gross Profit was 32236.164 + 23937.696 + 30516.948 + 11828.273 = ¥98,519 Mil.
Total Current Assets was ¥1,415,356 Mil.
Total Assets was ¥1,757,805 Mil.
Property, Plant and Equipment(Net PPE) was ¥40,453 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥21,997 Mil.
Total Current Liabilities was ¥1,077,802 Mil.
Long-Term Debt & Capital Lease Obligation was ¥271,655 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)
	=	(275820.064 / 465739.076)	/	(291133.438 / 503838.368)
	=	0.59222	/	0.577831
	=	1.0249

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)
	=	(98519.081 / 503838.368)	/	(70955.216 / 465739.076)
	=	0.195537	/	0.15235
	=	1.2835

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 - (1150260.062 + 41727.223) / 1504850.172)	/	(1 - (1415356.38 + 40452.547) / 1757804.936)
	=	0.207903	/	0.171803
	=	1.2101

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
	=	465739.076	/	503838.368
	=	0.9244

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 + 40452.547))	/	(0 / (0 + 41727.223))
	=	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)
	=	(18039.063 / 465739.076)	/	(21996.505 / 503838.368)
	=	0.038732	/	0.043658
	=	0.8872

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)
	=	((277279.752 + 821785.258) / 1504850.172)	/	((271654.576 + 1077801.572) / 1757804.936)
	=	0.730348	/	0.767694
	=	0.9514

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
	=	(12162.684 - 0	-	3912.323)	/	1504850.172
	=	0.005483

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.

China Vanke Co has a M-score of -2.23 suggests that the company is unlikely to be a manipulator.

China Vanke Co Beneish M-Score Related Terms

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China Vanke Co (SZSE:000002) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » China Vanke Co Ltd (SZSE:000002) » Definitions » Beneish M-Score

Traded in Other Exchanges

CHVKF:USA CHVKY:USA 02202:Hong Kong 18V:Germany

Address

Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, CHN, 518083

Website

https://www.vanke.com

China Vanke is a large real estate developer in China with residential property sales among the top three of all peers through the past five years. While property development accounts for most of its revenue and earnings, it has expanded its business presence in investment properties such as commercial retail complexes, long-term leasing apartments, and leasable logistical assets. China Vanke also owns an over-60% equity interest in its property management division Onewo, which manages the second-largest gross floor area in China. It is dual-listed in Shenzhen and Hong Kong, and state-owned Shenzhen Metro is the largest shareholder with a 27.2% stake.

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