Sinosteel Luonai Materials Stock Beneish M Score

688119 Stock   4.25  0.05  1.19%   
This module uses fundamental data of Sinosteel Luonai to approximate the value of its Beneish M Score. Sinosteel Luonai 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 Sinosteel Luonai Materials. 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.
  
The current year's Long Term Debt is expected to grow to about 623.2 M, whereas Net Debt is forecasted to decline to about 159.3 M.
At this time, Sinosteel Luonai's M Score is inapplicable. The earnings manipulation may begin if Sinosteel Luonai'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 Sinosteel Luonai 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 Sinosteel Luonai'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.
-3.52
Beneish M Score - Inapplicable
Elasticity of Receivables

0.77

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.91

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.91

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.08

Focus
Financial Leverage Condition

1.06

Focus

Sinosteel Luonai 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 Sinosteel Luonai'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 Receivables795.5 M955.6 M
Significantly Down
Slightly volatile
Total Revenue2.7 B2.5 B
Significantly Up
Slightly volatile
Total Assets5.5 B5.7 B
Sufficiently Down
Slightly volatile
Total Current Assets4.1 B4.2 B
Fairly Down
Slightly volatile
Non Current Assets Total1.4 B1.5 B
Significantly Down
Slightly volatile
Selling General Administrative97.7 M99 M
Fairly Down
Slightly volatile
Total Current Liabilities1.9 B1.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total862.2 M707.2 M
Fairly Up
Slightly volatile
Net Debt159.3 M179.2 M
Fairly Down
Slightly volatile
Long Term Debt623.2 M500 M
Fairly Up
Slightly volatile
Operating Income170.4 M110.5 M
Way Up
Slightly volatile
Short Term Investments451.2 K475 K
Notably Down
Slightly volatile

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

About Sinosteel Luonai 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

70.73 Million

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

About Sinosteel Luonai Fundamental Analysis

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

Sinosteel Luonai financial ratios help investors to determine whether Sinosteel 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 Sinosteel with respect to the benefits of owning Sinosteel Luonai security.