Sichuan Joyou Digital Technologies Co (SZSE:301172) Beneish M-Score : -2.77 (As of May. 22, 2024)

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What is Sichuan Joyou Digital Technologies 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 -2.77 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Sichuan Joyou Digital Technologies Co's Beneish M-Score or its related term are showing as below:

SZSE:301172' s Beneish M-Score Range Over the Past 10 Years
Min: -5.81 Med: -2.39 Max: 18.73
Current: -2.77

During the past 10 years, the highest Beneish M-Score of Sichuan Joyou Digital Technologies Co was 18.73. The lowest was -5.81. And the median was -2.39.

Sichuan Joyou Digital Technologies Co Beneish M-Score Historical Data

The historical data trend for Sichuan Joyou Digital Technologies 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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Sichuan Joyou Digital Technologies Co Beneish M-Score Chart

Sichuan Joyou Digital Technologies Co Annual Data

Trend

Dec13

Dec14

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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18.73

-2.39

-2.56

Sichuan Joyou Digital Technologies Co Quarterly Data
	Dec14	Dec16	Dec17	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.06	-	-2.56	-2.77

Competitive Comparison of Sichuan Joyou Digital Technologies Co's Beneish M-Score

For the Information Technology Services subindustry, Sichuan Joyou Digital Technologies 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.

Sichuan Joyou Digital Technologies Co's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Sichuan Joyou Digital Technologies Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sichuan Joyou Digital Technologies Co's Beneish M-Score falls into.

Sichuan Joyou Digital Technologies 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 Sichuan Joyou Digital Technologies 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 * 0.8415

0.528 * 1.0806

0.404 * 0.4793

0.892 * 1.1086

0.115 * 2.8644

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.2215

4.679 * 0.016913

0.327 * 0.4296

-2.77

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥385.0 Mil.
Revenue was 55.079 + 161.179 + 46.603 + 190.251 = ¥453.1 Mil.
Gross Profit was 11.361 + 53.228 + 21.543 + 66.072 = ¥152.2 Mil.
Total Current Assets was ¥1,707.4 Mil.
Total Assets was ¥1,762.2 Mil.
Property, Plant and Equipment(Net PPE) was ¥4.3 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0.8 Mil.
Selling, General, & Admin. Expense(SGA) was ¥23.1 Mil.
Total Current Liabilities was ¥302.3 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1.0 Mil.
Net Income was 9.15 + 19.86 + 13.105 + 34.736 = ¥76.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0.0 Mil.
Cash Flow from Operations was -21.087 + 17.643 + 26.78 + 23.711 = ¥47.0 Mil.

Total Receivables was ¥412.7 Mil.
Revenue was 17.038 + 158.689 + 56.887 + 176.111 = ¥408.7 Mil.
Gross Profit was 7.036 + 63.29 + 20.986 + 57.043 = ¥148.4 Mil.
Total Current Assets was ¥816.5 Mil.
Total Assets was ¥870.6 Mil.
Property, Plant and Equipment(Net PPE) was ¥2.1 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥1.6 Mil.
Selling, General, & Admin. Expense(SGA) was ¥4.9 Mil.
Total Current Liabilities was ¥348.5 Mil.
Long-Term Debt & Capital Lease Obligation was ¥0.1 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)
	=	(384.981 / 453.112)	/	(412.668 / 408.725)
	=	0.849638	/	1.009647
	=	0.8415

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)
	=	(148.355 / 408.725)	/	(152.204 / 453.112)
	=	0.36297	/	0.335908
	=	1.0806

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 - (1707.352 + 4.325) / 1762.215)	/	(1 - (816.479 + 2.057) / 870.635)
	=	0.028679	/	0.05984
	=	0.4793

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
	=	453.112	/	408.725
	=	1.1086

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))
	=	(1.604 / (1.604 + 2.057))	/	(0.781 / (0.781 + 4.325))
	=	0.438132	/	0.152957
	=	2.8644

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)
	=	(23.076 / 453.112)	/	(4.931 / 408.725)
	=	0.050928	/	0.012064
	=	4.2215

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)
	=	((0.956 + 302.269) / 1762.215)	/	((0.145 + 348.538) / 870.635)
	=	0.17207	/	0.400493
	=	0.4296

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
	=	(76.851 - 0	-	47.047)	/	1762.215
	=	0.016913

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.

Sichuan Joyou Digital Technologies Co has a M-score of -2.77 suggests that the company is unlikely to be a manipulator.

Sichuan Joyou Digital Technologies Co Beneish M-Score Related Terms

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Sichuan Joyou Digital Technologies Co (SZSE:301172) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sichuan Joyou Digital Technologies Co Ltd (SZSE:301172) » Definitions » Beneish M-Score

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Address

No. 288, Tianfu 3rd Street, Chengdu High-tech Zone, No. 2-7, 12th Floor, 13th Floor, Building 1, China (Sichuan) Pilot Free Trade Zone, Chengdu, CHN, 610094

Website

http://www.joyoudigital.com

Sichuan Joyou Digital Technologies Co Ltd is a professional smart city comprehensive solution provider. Its main business is to provide products and services such as system integration services, operation and maintenance services, and self-developed product sales for customers in the smart city field. The company mainly adopts new-generation information application technologies such as the Internet of Things, cloud computing, big data, artificial intelligence, and BIM to provide customers with a smart city industry that integrates application software customization development and intelligent and information system integration services Comprehensive solutions.

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