J Long Group Limited Stock Beneish M Score

JL Stock   3.03  0.15  5.21%   
This module uses fundamental data of J Long to approximate the value of its Beneish M Score. J Long 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 J Long Piotroski F Score and J Long Altman Z Score analysis.
  
At this time, J Long's Short and Long Term Debt Total is quite stable compared to the past year. Long Term Debt is expected to rise to about 1.8 M this year, although the value of Net Debt To EBITDA is projected to rise to (1.61). At this time, J Long's Capex To Revenue is quite stable compared to the past year. Payout Ratio is expected to rise to 2.02 this year, although the value of PTB Ratio will most likely fall to 27.15.
At this time, it appears that J Long Group is an unlikely manipulator. The earnings manipulation may begin if J Long'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 J Long 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 J Long'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.
-2.68
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.83

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.59

Focus
Gross Margin Strengs

0.75

Focus
Accruals Factor

0.59

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.06

Focus

J Long 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 J Long'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 Receivables3.6 M4.1 M
Fairly Down
Slightly volatile
Total Revenue29.8 M28.4 M
Sufficiently Up
Slightly volatile
Total Assets17.7 M16.9 M
Sufficiently Up
Slightly volatile
Total Current Assets15 M14.3 M
Sufficiently Up
Slightly volatile
Non Current Assets Total2.7 M2.6 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization155.2 K147.8 K
Sufficiently Up
Slightly volatile
Selling General Administrative3.3 M5.3 M
Way Down
Slightly volatile
Total Current Liabilities5.6 M5.3 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.5 M1.4 M
Sufficiently Up
Slightly volatile
Short Term Debt853.9 K743.6 K
Fairly Up
Slightly volatile
Long Term Debt1.8 M1.4 M
Significantly Up
Slightly volatile
Operating Income591.3 K380.3 K
Way Up
Slightly volatile
Short Term Investments276291
Notably Down
Slightly volatile
Gross Profit Margin0.180.2395
Way Down
Slightly volatile

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

About J Long 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.

Current Deferred Revenue

221,799

At this time, J Long's Current Deferred Revenue is quite stable compared to the past year.

About J Long Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze J Long Group Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of J Long using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of J Long Group Limited 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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Check out J Long Piotroski F Score and J Long Altman Z Score analysis.
You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Is Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of J Long. If investors know J Long will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about J Long listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.58)
Earnings Share
0.3
Revenue Per Share
0.938
Quarterly Revenue Growth
(0.13)
Return On Assets
0.0127
The market value of J Long Group is measured differently than its book value, which is the value of J Long that is recorded on the company's balance sheet. Investors also form their own opinion of J Long's value that differs from its market value or its book value, called intrinsic value, which is J Long's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because J Long's market value can be influenced by many factors that don't directly affect J Long's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between J Long's value and its price as these two are different measures arrived at by different means. Investors typically determine if J Long is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, J Long's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.