Kunming Chuan Jin Nuo Chemical Co (SZSE:300505) Beneish M-Score : 3.93 (As of May. 21, 2024)

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What is Kunming Chuan Jin Nuo Chemical 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.

Warning Sign:

Beneish M-Score 3.93 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Kunming Chuan Jin Nuo Chemical Co's Beneish M-Score or its related term are showing as below:

SZSE:300505' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -1.85 Max: 4.21
Current: 3.93

During the past 13 years, the highest Beneish M-Score of Kunming Chuan Jin Nuo Chemical Co was 4.21. The lowest was -3.14. And the median was -1.85.

Kunming Chuan Jin Nuo Chemical Co Beneish M-Score Historical Data

The historical data trend for Kunming Chuan Jin Nuo Chemical 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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Kunming Chuan Jin Nuo Chemical Co Beneish M-Score Chart

Kunming Chuan Jin Nuo Chemical Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.78

-2.12

-2.36

-1.73

4.21

Kunming Chuan Jin Nuo Chemical 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															-1.87	-0.80	0.45	4.21	3.93

Competitive Comparison of Kunming Chuan Jin Nuo Chemical Co's Beneish M-Score

For the Agricultural Inputs subindustry, Kunming Chuan Jin Nuo Chemical 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.

Kunming Chuan Jin Nuo Chemical Co's Beneish M-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Kunming Chuan Jin Nuo Chemical Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kunming Chuan Jin Nuo Chemical Co's Beneish M-Score falls into.

Kunming Chuan Jin Nuo Chemical 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 Kunming Chuan Jin Nuo Chemical 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 * 4.2089

0.528 * 7.622

0.404 * 1.025

0.892 * 1.0677

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2117

4.679 * -0.032901

0.327 * 0.7398

3.93

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥431 Mil.
Revenue was 581.361 + 796.56 + 782.273 + 612.334 = ¥2,773 Mil.
Gross Profit was 62.832 + 69.711 + -32.205 + -32.866 = ¥67 Mil.
Total Current Assets was ¥1,706 Mil.
Total Assets was ¥3,500 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,554 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥71 Mil.
Total Current Liabilities was ¥815 Mil.
Long-Term Debt & Capital Lease Obligation was ¥212 Mil.
Net Income was 20.379 + 16.632 + -72.486 + -39.583 = ¥-75 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -59.893 + -39.419 + 204.305 + -64.907 = ¥40 Mil.

Total Receivables was ¥96 Mil.
Revenue was 520.174 + 710.575 + 714.091 + 651.98 = ¥2,597 Mil.
Gross Profit was 48.356 + 108.185 + 137.763 + 187.381 = ¥482 Mil.
Total Current Assets was ¥1,433 Mil.
Total Assets was ¥3,138 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,496 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥55 Mil.
Total Current Liabilities was ¥1,007 Mil.
Long-Term Debt & Capital Lease Obligation was ¥237 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)
	=	(430.904 / 2772.528)	/	(95.89 / 2596.82)
	=	0.155419	/	0.036926
	=	4.2089

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)
	=	(481.685 / 2596.82)	/	(67.472 / 2772.528)
	=	0.18549	/	0.024336
	=	7.622

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 - (1706.137 + 1553.915) / 3499.746)	/	(1 - (1432.799 + 1495.529) / 3137.995)
	=	0.068489	/	0.066816
	=	1.025

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
	=	2772.528	/	2596.82
	=	1.0677

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 + 1495.529))	/	(0 / (0 + 1553.915))
	=	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)
	=	(71.424 / 2772.528)	/	(55.21 / 2596.82)
	=	0.025761	/	0.021261
	=	1.2117

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)
	=	((211.787 + 814.665) / 3499.746)	/	((237.003 + 1007.016) / 3137.995)
	=	0.293293	/	0.396438
	=	0.7398

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
	=	(-75.058 - 0	-	40.086)	/	3499.746
	=	-0.032901

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.

Kunming Chuan Jin Nuo Chemical Co has a M-score of 3.93 signals that the company is likely to be a manipulator.

Kunming Chuan Jin Nuo Chemical Co Beneish M-Score Related Terms

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Kunming Chuan Jin Nuo Chemical Co (SZSE:300505) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Kunming Chuan Jin Nuo Chemical Co Ltd (SZSE:300505) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Sifangdi Industrial Park, Tongdu Town, Dongchuan District, Yunnan Province, Kunming, CHN, 654100

Website

http://www.kmcjn.com

Kunming Chuan Jin Nuo Chemical Co Ltd is producer of fertilizer grade phosphates. It also researches, produces and grading of wet-process phosphoric acid. Its products are wet-process phosphoric acid and phosphate products. Its products include fertilizer grade calcium hydrogen phosphate, triple superphosphate, enriched superphosphate, and single superphosphate.

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