Shenzhen United Winners Stock Beneish M Score

688518 Stock   16.74  0.08  0.48%   
This module uses fundamental data of Shenzhen United to approximate the value of its Beneish M Score. Shenzhen United 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 Shenzhen United Winners. 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, Shenzhen United's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 288.3 M, whereas Net Debt is forecasted to decline to (32.4 M).
At this time, Shenzhen United's M Score is inapplicable. The earnings manipulation may begin if Shenzhen United'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 Shenzhen United 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 Shenzhen United'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.
-1.42
Beneish M Score - Inapplicable
Elasticity of Receivables

0.54

Focus
Asset Quality

5.23

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.48

Focus

Shenzhen United 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 Shenzhen United'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 Receivables844.4 M1.5 B
Way Down
Slightly volatile
Total Revenue3.7 B3.5 B
Sufficiently Up
Slightly volatile
Total Assets7.3 BB
Sufficiently Up
Slightly volatile
Total Current AssetsBB
Way Down
Slightly volatile
Non Current Assets Total999.4 M951.8 M
Sufficiently Up
Slightly volatile
Property Plant Equipment699.9 M666.6 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization142.1 M135.3 M
Sufficiently Up
Slightly volatile
Selling General Administrative283.1 M269.7 M
Sufficiently Up
Slightly volatile
Total Current LiabilitiesB3.9 B
Way Down
Slightly volatile
Non Current Liabilities Total13.8 M17.8 M
Significantly Down
Slightly volatile
Short Term Debt288.3 M274.6 M
Sufficiently Up
Slightly volatile
Long Term Debt1.4 M1.7 M
Fairly Down
Slightly volatile
Operating Income379.2 M361.1 M
Sufficiently Up
Slightly volatile
Short Term Investments344.5 M392.2 M
Fairly Down
Slightly volatile

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

About Shenzhen United 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.

Depreciation And Amortization

142.1 Million

At present, Shenzhen United's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Shenzhen United 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 Shenzhen United. 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)
Total Revenue1.0B877.9M1.4B2.8B3.5B3.7B
Total Assets1.6B2.5B4.0B5.7B7.0B7.3B
Total Current Assets1.5B2.3B3.5B4.8B6.0B3.0B
Net Debt(58.1M)(305.9M)(209.1M)(34.3M)(30.9M)(32.4M)
Short Term Debt41.2M717.1K30.2M238.8M274.6M288.3M
Operating Income124.1M77.2M96.5M305.1M361.1M379.2M

About Shenzhen United Fundamental Analysis

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

Shenzhen United financial ratios help investors to determine whether Shenzhen 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 Shenzhen with respect to the benefits of owning Shenzhen United security.