Chongqing Road Bridge Stock Beneish M Score

600106 Stock   6.68  0.09  1.37%   
This module uses fundamental data of Chongqing Road to approximate the value of its Beneish M Score. Chongqing Road 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 Chongqing Road Bridge. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
At present, Chongqing Road's Long Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 690 M, whereas Short Term Debt is forecasted to decline to about 600.5 M.
At this time, Chongqing Road's M Score is inapplicable. The earnings manipulation may begin if Chongqing Road'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 Chongqing Road 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 Chongqing Road'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.
-3.18
Beneish M Score - Inapplicable
Elasticity of Receivables

0.52

Focus
Asset Quality

0.84

Focus
Expense Coverage

0.92

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.92

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.84

Focus
Financial Leverage Condition

1.47

Focus

Chongqing Road 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 Chongqing Road'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 Receivables8.4 M8.8 M
Notably Down
Very volatile
Total Revenue214.3 M116.7 M
Way Up
Slightly volatile
Total Assets5.4 B6.7 B
Significantly Down
Slightly volatile
Total Current Assets2.1 BB
Significantly Up
Pretty Stable
Non Current Assets Total3.8 B4.7 B
Significantly Down
Slightly volatile
Property Plant Equipment93.6 M98.5 M
Notably Down
Slightly volatile
Selling General Administrative9.1 M5.4 M
Way Up
Slightly volatile
Total Current Liabilities789.6 M642.2 M
Fairly Up
Slightly volatile
Non Current Liabilities Total1.5 B1.4 B
Significantly Up
Slightly volatile
Net Debt107.4 M113.1 M
Notably Down
Slightly volatile
Short Term Debt600.5 M922.1 M
Way Down
Slightly volatile
Long Term DebtBB
Way Up
Slightly volatile
Operating Income69.8 M73.5 M
Notably Down
Slightly volatile
Short Term Investments120.7 M202.2 M
Way Down
Slightly volatile
Long Term Investments2.9 B2.9 B
Slightly Up
Slightly volatile

Chongqing Road Bridge 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 Chongqing Road's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Chongqing Road in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Chongqing Road's degree of accounting gimmicks and manipulations.

About Chongqing Road 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

8.19 Million

At present, Chongqing Road's Reconciled Depreciation is projected to decrease significantly based on the last few years of reporting.

Chongqing Road 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 Chongqing Road. 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 Receivables427.0M598.4K18.4M9.8M8.8M8.4M
Total Revenue239.1M201.7M164.8M121.3M116.7M214.3M
Total Assets6.5B6.4B7.2B6.9B6.7B5.4B
Total Current Assets1.7B2.3B2.3B2.3B2.0B2.1B
Net Debt1.5B554.3M282.1M214.5M113.1M107.4M
Long Term Debt1.5B1.3B1.2B1.1B1.0B2.0B
Operating Income74.5M148.3M114.1M83.5M73.5M69.8M
Investments552.3M16.8M167.3M(15.5M)67.5M70.9M

About Chongqing Road Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chongqing Road Bridge's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chongqing Road using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chongqing Road Bridge 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.

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Other Information on Investing in Chongqing Stock

Chongqing Road financial ratios help investors to determine whether Chongqing 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 Chongqing with respect to the benefits of owning Chongqing Road security.