Shanghai Huace Navigation Technology (SZSE:300627) Beneish M-Score : -2.03 (As of May. 13, 2024)

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What is Shanghai Huace Navigation Technology 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 -2.03 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SZSE:300627' s Beneish M-Score Range Over the Past 10 Years
Min: -2.72 Med: -2.11 Max: 6.52
Current: -2.03

During the past 12 years, the highest Beneish M-Score of Shanghai Huace Navigation Technology was 6.52. The lowest was -2.72. And the median was -2.11.

Shanghai Huace Navigation Technology Beneish M-Score Historical Data

The historical data trend for Shanghai Huace Navigation Technology'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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Shanghai Huace Navigation Technology Beneish M-Score Chart

Shanghai Huace Navigation Technology Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.17

-2.39

-2.42

-2.21

-2.27

Shanghai Huace Navigation Technology 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															-2.39	-2.47	-2.22	-2.27	-2.03

Competitive Comparison of Shanghai Huace Navigation Technology's Beneish M-Score

For the Scientific & Technical Instruments subindustry, Shanghai Huace Navigation Technology'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.

Shanghai Huace Navigation Technology's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Shanghai Huace Navigation Technology's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shanghai Huace Navigation Technology's Beneish M-Score falls into.

Shanghai Huace Navigation Technology 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 Shanghai Huace Navigation Technology 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 * 0.9804

0.528 * 0.9789

0.404 * 1.288

0.892 * 1.1968

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9416

4.679 * 0.024301

0.327 * 0.8033

-2.03

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥1,094 Mil.
Revenue was 616.911 + 852.998 + 617.367 + 696.128 = ¥2,783 Mil.
Gross Profit was 362.759 + 481.722 + 361.994 + 400.648 = ¥1,607 Mil.
Total Current Assets was ¥3,201 Mil.
Total Assets was ¥4,295 Mil.
Property, Plant and Equipment(Net PPE) was ¥592 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥597 Mil.
Total Current Liabilities was ¥920 Mil.
Long-Term Debt & Capital Lease Obligation was ¥125 Mil.
Net Income was 103.064 + 166.427 + 106.977 + 96.671 = ¥473 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -227.476 + 495.004 + 33.77 + 67.474 = ¥369 Mil.

Total Receivables was ¥933 Mil.
Revenue was 511.848 + 786.909 + 520.782 + 506.212 = ¥2,326 Mil.
Gross Profit was 302.866 + 405.297 + 314.516 + 291.87 = ¥1,315 Mil.
Total Current Assets was ¥2,972 Mil.
Total Assets was ¥3,953 Mil.
Property, Plant and Equipment(Net PPE) was ¥624 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥529 Mil.
Total Current Liabilities was ¥1,050 Mil.
Long-Term Debt & Capital Lease Obligation was ¥148 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)
	=	(1094.14 / 2783.404)	/	(932.555 / 2325.751)
	=	0.393094	/	0.400969
	=	0.9804

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)
	=	(1314.549 / 2325.751)	/	(1607.123 / 2783.404)
	=	0.565215	/	0.577395
	=	0.9789

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 - (3201.443 + 592.419) / 4294.804)	/	(1 - (2971.59 + 623.537) / 3953.123)
	=	0.116639	/	0.09056
	=	1.288

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
	=	2783.404	/	2325.751
	=	1.1968

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 + 623.537))	/	(0 / (0 + 592.419))
	=	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)
	=	(596.665 / 2783.404)	/	(529.494 / 2325.751)
	=	0.214365	/	0.227666
	=	0.9416

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)
	=	((125.49 + 920.417) / 4294.804)	/	((148.035 + 1050.421) / 3953.123)
	=	0.243528	/	0.303167
	=	0.8033

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
	=	(473.139 - 0	-	368.772)	/	4294.804
	=	0.024301

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.

Shanghai Huace Navigation Technology has a M-score of -2.03 suggests that the company is unlikely to be a manipulator.

Shanghai Huace Navigation Technology Beneish M-Score Related Terms

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Shanghai Huace Navigation Technology (SZSE:300627) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Shanghai Huace Navigation Technology Ltd (SZSE:300627) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 599, Gaojing Road, 3rd Floor, Building D, Qingpu District, Shanghai, CHN, 201702

Website

http://www.chcnav.com

Shanghai Huace Navigation Technology Ltd manufactures satellite navigation and positioning systems and equipment, geographic information and disaster monitoring system and equipment. It provides positioning solutions for surveying, construction, GIS and marine applications in various countries. The company offers products for GIS data collection, GNSS infrastructure, unmanned aircraft systems, marine construction, optical surveying, GNSS survey and engineering, and precision agriculture.

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