Xiamen Itg Group Stock Beneish M Score

600755 Stock   6.63  0.05  0.75%   
This module uses fundamental data of Xiamen ITG to approximate the value of its Beneish M Score. Xiamen ITG 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 Xiamen ITG Group. 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.
  
At present, Xiamen ITG'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 9.6 B, whereas Short and Long Term Debt is forecasted to decline to about 9.2 B.
At this time, Xiamen ITG's M Score is inapplicable. The earnings manipulation may begin if Xiamen ITG'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 Xiamen ITG 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 Xiamen ITG'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.
-2.72
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.64

Focus
Expense Coverage

0.51

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.51

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.04

Focus

Xiamen ITG 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 Xiamen ITG'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 Receivables10.5 B10 B
Sufficiently Up
Slightly volatile
Total Revenue491.7 B468.2 B
Sufficiently Up
Slightly volatile
Total Assets118.8 B113.1 B
Sufficiently Up
Slightly volatile
Total Current Assets77.6 B87.4 B
Fairly Down
Slightly volatile
Non Current Assets Total18 B25.8 B
Way Down
Slightly volatile
Property Plant Equipment6.3 BB
Sufficiently Up
Slightly volatile
Selling General Administrative1.2 B2.2 B
Way Down
Slightly volatile
Total Current Liabilities72 B68.6 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total6.4 B5.9 B
Significantly Up
Pretty Stable
Net Debt9.6 B6.1 B
Way Up
Pretty Stable
Short Term Debt5.4 B9.4 B
Way Down
Slightly volatile
Long Term Debt5.1 B4.9 B
Sufficiently Up
Slightly volatile
Operating Income4.1 B3.9 B
Sufficiently Up
Slightly volatile
Short Term Investments1.1 B1.6 B
Way Down
Slightly volatile
Long Term Investments3.9 B5.3 B
Way Down
Slightly volatile

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

About Xiamen ITG 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

316.87 Million

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

Xiamen ITG 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 Xiamen ITG. 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 Receivables8.9B3.8B5.6B9.1B10.0B10.5B
Total Revenue218.0B351.1B464.8B521.9B468.2B491.7B
Total Assets89.5B113.4B97.7B112.9B113.1B118.8B
Total Current Assets72.0B94.6B80.5B93.6B87.4B77.6B
Net Debt7.6B11.4B12.8B5.3B6.1B9.6B
Long Term Debt7.5B14.0B2.5B1.2B4.9B5.1B
Operating Income3.8B4.2B5.5B6.8B3.9B4.1B
Investments(2.3B)(914.9M)(1.5B)1.2B(1.3B)(1.3B)

About Xiamen ITG Fundamental Analysis

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

Xiamen ITG financial ratios help investors to determine whether Xiamen 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 Xiamen with respect to the benefits of owning Xiamen ITG security.