Chengtun Mining Group Stock Beneish M Score

600711 Stock   4.74  0.02  0.42%   
This module uses fundamental data of Chengtun Mining to approximate the value of its Beneish M Score. Chengtun Mining 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 Chengtun Mining Group. 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, Chengtun Mining's 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 6.4 B, whereas Short and Long Term Debt is forecasted to decline to about 3.6 B.
At this time, Chengtun Mining's M Score is inapplicable. The earnings manipulation may begin if Chengtun Mining'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 Chengtun Mining 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 Chengtun Mining'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.
-2.72
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.58

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Chengtun Mining 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 Chengtun Mining'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 Receivables1.6 B1.5 B
Sufficiently Up
Slightly volatile
Total Revenue25.7 B24.5 B
Sufficiently Up
Slightly volatile
Total Assets39.6 B37.7 B
Sufficiently Up
Slightly volatile
Total Current Assets11.4 B18 B
Way Down
Slightly volatile
Non Current Assets Total12 B19.7 B
Way Down
Slightly volatile
Property Plant Equipment10.9 B10.3 B
Sufficiently Up
Slightly volatile
Selling General Administrative305.3 M290.8 M
Sufficiently Up
Slightly volatile
Total Current Liabilities16.3 B15.6 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total6.2 B5.9 B
Sufficiently Up
Slightly volatile
Net Debt6.4 B6.1 B
Sufficiently Up
Slightly volatile
Short Term Debt1.7 B2.3 B
Way Down
Slightly volatile
Long Term Debt4.3 B4.1 B
Sufficiently Up
Slightly volatile
Operating Income1.5 B1.4 B
Sufficiently Up
Slightly volatile
Short Term Investments405.2 M537.7 M
Way Down
Slightly volatile
Long Term Investments654.8 M1.1 B
Way Down
Slightly volatile

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

About Chengtun Mining 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

1.08 Billion

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

Chengtun Mining 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 Chengtun Mining. 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 Receivables1.3B795.3M1.7B1.1B1.5B1.6B
Total Revenue37.3B39.2B45.2B25.4B24.5B25.7B
Total Assets19.0B23.2B27.3B32.0B37.7B39.6B
Total Current Assets10.5B10.8B14.4B16.2B18.0B11.4B
Net Debt392.7M2.5B3.1B2.4B6.1B6.4B
Long Term Debt594.6M969.4M696.2M453.3M4.1B4.3B
Operating Income391.8M1.1B3.5B1.8B1.4B1.5B
Investments50.1M(730.1M)(142.8M)(847.5M)(2.5B)(2.4B)

About Chengtun Mining Fundamental Analysis

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

Chengtun Mining financial ratios help investors to determine whether Chengtun 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 Chengtun with respect to the benefits of owning Chengtun Mining security.