China Natural Resources Stock Beneish M Score

CHNR Stock  USD 0.65  0.01  1.52%   
This module uses fundamental data of China Natural to approximate the value of its Beneish M Score. China Natural 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 China Natural Piotroski F Score and China Natural Altman Z Score analysis.
  
At this time, China Natural's Long Term Debt is relatively stable compared to the past year. As of 11/22/2024, Short and Long Term Debt is likely to grow to about 3.6 M, though Net Debt is likely to grow to (4.2 M). At this time, China Natural's PFCF Ratio is relatively stable compared to the past year. As of 11/22/2024, Days Payables Outstanding is likely to grow to 484.01, while Dividend Yield is likely to drop 0.03.
At this time, China Natural's M Score is unavailable. The earnings manipulation may begin if China Natural'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 China Natural 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 China Natural'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.
-5.04
Beneish M Score - Unavailable
Elasticity of Receivables

N/A

Focus
Asset Quality

1.0

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

0.52

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

1.46

Focus

China Natural 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 China Natural'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 Receivables2.9 KK
Notably Down
Pretty Stable
Total Assets241.1 M253.8 M
Notably Down
Slightly volatile
Total Current Assets5.6 M5.9 M
Notably Down
Slightly volatile
Non Current Assets Total347.3 M247.9 M
Significantly Up
Slightly volatile
Property Plant Equipment3.3 M3.5 M
Notably Down
Slightly volatile
Depreciation And Amortization515.9 K543 K
Notably Down
Slightly volatile
Selling General Administrative23.8 M12.9 M
Way Up
Slightly volatile
Total Current Liabilities244.8 M177.8 M
Significantly Up
Slightly volatile
Short Term Debt342 K360 K
Notably Down
Slightly volatile

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

About China Natural 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.

Total Assets

241.12 Million

At this time, China Natural's Total Assets are relatively stable compared to the past year.

China Natural 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 China Natural. 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 Receivables4.0M44.3M56.9M76.9M3K2.9K
Total Assets8.3M142.4M333.4M320.0M253.8M241.1M
Net Debt(2.6M)(1.4M)20.8M45.2M(4.4M)(4.2M)
Short Term Debt803K4.4M4.0M4.3M360K342K
Long Term Debt30M77M74M71M81.7M85.7M
Operating Income(5.6M)(7.1M)(7.0M)(15.2M)(12.9M)(12.2M)
Investments(5K)(9K)5M7.1M(1.1M)(1.0M)

About China Natural Fundamental Analysis

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

Pair Trading with China Natural

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if China Natural position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Natural will appreciate offsetting losses from the drop in the long position's value.

Moving against China Stock

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The ability to find closely correlated positions to China Natural could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Natural when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back China Natural - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling China Natural Resources to buy it.
The correlation of China Natural is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as China Natural moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Natural Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for China Natural can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional Tools for China Stock Analysis

When running China Natural's price analysis, check to measure China Natural's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy China Natural is operating at the current time. Most of China Natural's value examination focuses on studying past and present price action to predict the probability of China Natural's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Natural's price. Additionally, you may evaluate how the addition of China Natural to your portfolios can decrease your overall portfolio volatility.