This module uses fundamental data of China Enterprise to approximate the value of its Beneish M Score. China Enterprise 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 China Enterprise Co. 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.
China
Beneish M Score
Capital Expenditures
Net Income
Net Borrowings
Total Cashflows From Investing Activities
Other Cashflows From Financing Activities
Total Cash From Operating Activities
Other Cashflows From Investing Activities
Change To Netincome
Change To Liabilities
Change To Inventory
Investments
Change In Cash
Depreciation
Dividends Paid
End Period Cash Flow
Free Cash Flow
Change In Working Capital
Begin Period Cash Flow
Other Non Cash Items
Change To Account Receivables
Total Cash From Financing Activities
Total Assets
Total Stockholder Equity
Other Liab
Retained Earnings
Accounts Payable
Cash
Other Assets
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Inventory
Total Liab
Intangible Assets
Common Stock
Property Plant Equipment
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Other Current Liab
Total Current Liabilities
Net Tangible Assets
Net Receivables
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Other Stockholder Equity
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Non Currrent Assets Other
Non Current Liabilities Total
Short Long Term Debt
Non Current Liabilities Other
Net Invested Capital
Net Working Capital
Property Plant And Equipment Net
Net Debt
Property Plant And Equipment Gross
Capital Lease Obligations
Interest Expense
Total Revenue
Operating Income
Income Before Tax
Income Tax Expense
Minority Interest
Net Income Applicable To Common Shares
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Tax Provision
Net Interest Income
Interest Income
Selling General Administrative
Gross Profit
Net Income From Continuing Ops
Ebit
Cost Of Revenue
Total Operating Expenses
Ebitda
Reconciled Depreciation
Probability Of Bankruptcy
At present, China Enterprise'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 3.4 B, whereas Short and Long Term Debt is forecasted to decline to about 17.1 M.
At this time, China Enterprise's M Score is inapplicable. The earnings manipulation may begin if China Enterprise'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 Enterprise 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 Enterprise'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.
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 Enterprise'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.
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 Enterprise's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards China Enterprise in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find China Enterprise's degree of accounting gimmicks and manipulations.
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
303.85 Million
At present, China Enterprise's Reconciled Depreciation is projected to increase significantly based on the last few years of reporting.
China Enterprise 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 Enterprise. 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.
The Macroaxis Fundamental Analysis modules help investors analyze China Enterprise Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of China Enterprise using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of China Enterprise Co 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.
China Enterprise financial ratios help investors to determine whether China 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 China with respect to the benefits of owning China Enterprise security.