Sunrise New Energy Co (Sunrise New Energy Co) Beneish M-Score : -3.50 (As of May. 27, 2024)

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What is Sunrise New Energy 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 -3.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

EPOW' s Beneish M-Score Range Over the Past 10 Years
Min: -9.98 Med: -2.08 Max: 2.91
Current: -3.5

During the past 7 years, the highest Beneish M-Score of Sunrise New Energy Co was 2.91. The lowest was -9.98. And the median was -2.08.

Sunrise New Energy Co Beneish M-Score Historical Data

The historical data trend for Sunrise New Energy 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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Sunrise New Energy Co Beneish M-Score Chart

Sunrise New Energy Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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2.91

-0.90

-2.08

-9.98

-3.50

Sunrise New Energy Co Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial								-2.08	-	-9.98	-	-3.50

Competitive Comparison of Sunrise New Energy Co's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Sunrise New Energy 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.

Sunrise New Energy Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sunrise New Energy Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sunrise New Energy Co's Beneish M-Score falls into.

Sunrise New Energy 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 Sunrise New Energy 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 * 1.3661

0.528 * 0.1286

0.404 * 0.5587

0.892 * 1.1816

0.115 * 0.9232

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.848

4.679 * -0.112609

0.327 * 2.1323

-3.50

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $10.39 Mil.
Revenue was $45.05 Mil.
Gross Profit was $-12.40 Mil.
Total Current Assets was $35.82 Mil.
Total Assets was $120.51 Mil.
Property, Plant and Equipment(Net PPE) was $71.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.51 Mil.
Selling, General, & Admin. Expense(SGA) was $13.78 Mil.
Total Current Liabilities was $63.49 Mil.
Long-Term Debt & Capital Lease Obligation was $8.79 Mil.
Net Income was $-24.23 Mil.
Gross Profit was $-3.38 Mil.
Cash Flow from Operations was $-7.28 Mil.

Total Receivables was $6.44 Mil.
Revenue was $38.13 Mil.
Gross Profit was $-1.35 Mil.
Total Current Assets was $44.64 Mil.
Total Assets was $107.02 Mil.
Property, Plant and Equipment(Net PPE) was $41.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.40 Mil.
Selling, General, & Admin. Expense(SGA) was $13.76 Mil.
Total Current Liabilities was $26.02 Mil.
Long-Term Debt & Capital Lease Obligation was $4.08 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)
	=	(10.389 / 45.05)	/	(6.436 / 38.126)
	=	0.23061	/	0.168809
	=	1.3661

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)
	=	(-1.35 / 38.126)	/	(-12.403 / 45.05)
	=	-0.035409	/	-0.275316
	=	0.1286

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 - (35.816 + 71.53) / 120.505)	/	(1 - (44.638 + 41.468) / 107.022)
	=	0.109199	/	0.195436
	=	0.5587

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
	=	45.05	/	38.126
	=	1.1816

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))
	=	(2.402 / (2.402 + 41.468))	/	(4.51 / (4.51 + 71.53))
	=	0.054753	/	0.059311
	=	0.9232

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)
	=	(13.782 / 45.05)	/	(13.755 / 38.126)
	=	0.305927	/	0.360777
	=	0.848

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)
	=	((8.785 + 63.488) / 120.505)	/	((4.079 + 26.023) / 107.022)
	=	0.599751	/	0.281269
	=	2.1323

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
	=	(-24.233 - -3.38	-	-7.283)	/	120.505
	=	-0.112609

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.

Sunrise New Energy Co has a M-score of -3.50 suggests that the company is unlikely to be a manipulator.

Sunrise New Energy Co Beneish M-Score Related Terms

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Sunrise New Energy Co (Sunrise New Energy Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Sunrise New Energy Co Ltd (NAS:EPOW) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 69 Sanying Road, Zibo Science and Technology Industrial Entrepreneurship Park, Room 703, West Zone, R&D Building, Zhangdian District, Shandong Province, Zibo City, CHN

Website

https://www.sunrisenewenergy.com

Sunrise New Energy Co Ltd is engaged in the manufacturing and sale of graphite anode material for EVs and other lithium-ion batteries. The Company's joint venture is into the construction of a manufacturing plant in Guizhou Province. The plant runs on inexpensive electricity from renewable sources that enables the group to be a low-cost and low environmental impact producer of graphite anode material, Its products include GS-1, GS-2, GS-3, GZD-1, GLD-1, and GZ-1.