Beijing Huayuanyitong Thermal Stock Beneish M Score

002893 Stock   11.56  0.75  6.09%   
This module uses fundamental data of Beijing HuaYuanYiTong to approximate the value of its Beneish M Score. Beijing HuaYuanYiTong M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Beijing HuaYuanYiTong Thermal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
  
At present, Beijing HuaYuanYiTong's Short and Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 201.5 M, whereas Long Term Debt is forecasted to decline to about 111.9 M.
At this time, Beijing HuaYuanYiTong's M Score is inapplicable. The earnings manipulation may begin if Beijing HuaYuanYiTong's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Beijing HuaYuanYiTong executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Beijing HuaYuanYiTong's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.02
Beneish M Score - Inapplicable
Elasticity of Receivables

0.77

Focus
Asset Quality

7.8

Focus
Expense Coverage

1.38

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.38

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.98

Focus
Financial Leverage Condition

1.24

Focus

Beijing HuaYuanYiTong Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Beijing HuaYuanYiTong's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables253.8 M337.4 M
Way Down
Pretty Stable
Total Revenue1.1 B1.1 B
Fairly Down
Slightly volatile
Total Assets2.1 B2.4 B
Fairly Down
Slightly volatile
Total Current AssetsB1.4 B
Way Down
Slightly volatile
Non Current Assets Total1.1 BB
Significantly Up
Slightly volatile
Property Plant Equipment621.9 M975.9 M
Way Down
Slightly volatile
Selling General Administrative21.2 M15.6 M
Significantly Up
Very volatile
Total Current Liabilities1.2 B1.1 B
Moderately Up
Slightly volatile
Non Current Liabilities Total240.1 M218.7 M
Significantly Up
Slightly volatile
Net Debt201.5 M193.4 M
Sufficiently Up
Slightly volatile
Short Term Debt366.7 M438.2 M
Fairly Down
Slightly volatile
Long Term Debt111.9 M115 M
Fairly Down
Pretty Stable
Operating Income100.7 M114.8 M
Fairly Down
Pretty Stable
Total Cash From Operating Activities223 M260.6 M
Fairly Down
Pretty Stable

Beijing HuaYuanYiTong Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Beijing HuaYuanYiTong's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Beijing HuaYuanYiTong in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Beijing HuaYuanYiTong's degree of accounting gimmicks and manipulations.

About Beijing HuaYuanYiTong Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Reconciled Depreciation

79.01 Million

At present, Beijing HuaYuanYiTong's Reconciled Depreciation is projected to increase significantly based on the last few years of reporting.

Beijing HuaYuanYiTong Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Beijing HuaYuanYiTong. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables401.2M274.6M263.6M298.0M337.4M253.8M
Total Revenue919.5M951.6M1.0B1.0B1.1B1.1B
Total Assets2.0B2.2B2.1B2.1B2.4B2.1B
Total Current Assets1.2B785.5M691.1M919.9M1.4B1.0B
Non Current Assets Total829.1M1.4B1.4B1.2B1.0B1.1B
Property Plant Equipment435.6M424.2M863.1M848.6M975.9M621.9M
Selling General Administrative37.1M24.4M37.0M21.9M15.6M21.2M
Total Current Liabilities1.0B1.2B1.1B1.3B1.1B1.2B
Non Current Liabilities Total353.7M363.9M302.4M124.4M218.7M240.1M
Long Term Debt231.0M129.6M108.5M100M115M111.9M
Operating Income83.3M75.6M88.2M96.1M114.8M100.7M
Total Cash From Operating Activities205.2M177.0M240.5M257.9M260.6M223.0M
Investments(130M)(78.8M)1M(61.5M)(16.8M)(17.7M)

About Beijing HuaYuanYiTong Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Beijing HuaYuanYiTong Thermal's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Beijing HuaYuanYiTong using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Beijing HuaYuanYiTong Thermal based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Other Information on Investing in Beijing Stock

Beijing HuaYuanYiTong financial ratios help investors to determine whether Beijing Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Beijing with respect to the benefits of owning Beijing HuaYuanYiTong security.