Ningbo Boway Alloy Stock Beneish M Score

601137 Stock   20.01  1.14  6.04%   
This module uses fundamental data of Ningbo Boway to approximate the value of its Beneish M Score. Ningbo Boway 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 Ningbo Boway Alloy. 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, Ningbo Boway'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 1.4 B, whereas Short and Long Term Debt is forecasted to decline to about 1.5 B.
At this time, Ningbo Boway's M Score is inapplicable. The earnings manipulation may begin if Ningbo Boway'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 Ningbo Boway 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 Ningbo Boway'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.
-0.92
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

6.09

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

1.04

Focus

Ningbo Boway 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 Ningbo Boway'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 Receivables1.8 B1.7 B
Sufficiently Up
Slightly volatile
Total Revenue18.6 B17.8 B
Sufficiently Up
Slightly volatile
Total Assets17.2 B16.3 B
Sufficiently Up
Slightly volatile
Total Current Assets5.4 B10.5 B
Way Down
Slightly volatile
Non Current Assets Total4.5 B5.8 B
Significantly Down
Slightly volatile
Property Plant EquipmentB5.7 B
Sufficiently Up
Slightly volatile
Selling General Administrative435 M414.3 M
Sufficiently Up
Slightly volatile
Total Current Liabilities6.6 B6.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total3.1 B2.9 B
Sufficiently Up
Slightly volatile
Net Debt1.4 BB
Significantly Up
Slightly volatile
Short Term Debt1.1 B1.5 B
Way Down
Slightly volatile
Long Term Debt2.6 B2.5 B
Sufficiently Up
Slightly volatile
Operating Income1.9 B1.9 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities1.5 B1.4 B
Sufficiently Up
Slightly volatile
Short Term Investments715.3 K752.9 K
Notably Down
Very volatile

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

About Ningbo Boway 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

255.02 Million

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

Ningbo Boway 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 Ningbo Boway. 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 Receivables1.1B963.5M1.2B1.4B1.7B1.8B
Total Revenue7.6B7.6B10.0B13.4B17.8B18.6B
Total Assets7.6B9.1B11.8B14.5B16.3B17.2B
Total Current Assets3.8B4.3B6.3B8.7B10.5B5.4B
Net Debt1.0B1.3B2.3B2.3B1.0B1.4B
Long Term Debt602.2M284.1M704.4M2.4B2.5B2.6B
Operating Income553.4M599.6M491.5M876.8M1.9B1.9B
Investments(64.4M)(43.2M)(36.9K)(893.6M)(937.1M)(890.2M)

About Ningbo Boway Fundamental Analysis

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

Ningbo Boway financial ratios help investors to determine whether Ningbo 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 Ningbo with respect to the benefits of owning Ningbo Boway security.