China Pacific Insurance Stock Beneish M Score

601601 Stock   31.99  0.32  1.01%   
This module uses fundamental data of China Pacific to approximate the value of its Beneish M Score. China Pacific 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 Pacific Insurance. 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.
  
As of January 9, 2025, Long Term Debt is expected to decline to about 10.3 B.
At this time, China Pacific's M Score is inapplicable. The earnings manipulation may begin if China Pacific'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 Pacific 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 Pacific'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.
-3.0
Beneish M Score - Inapplicable
Elasticity of Receivables

1.55

Focus
Asset Quality

1.02

Focus
Expense Coverage

1.4

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.4

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.68

Focus
Financial Leverage Condition

0.78

Focus

China Pacific 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 Pacific'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 Receivables90.3 B86 B
Sufficiently Up
Slightly volatile
Total Revenue250.9 B369.9 B
Way Down
Slightly volatile
Total Assets2.8 T2.7 T
Sufficiently Up
Slightly volatile
Total Current Assets147.3 B185.3 B
Significantly Down
Slightly volatile
Non Current Assets Total790.7 B889.6 B
Fairly Down
Slightly volatile
Property Plant Equipment27.4 B26.1 B
Sufficiently Up
Slightly volatile
Selling General Administrative4.6 B4.9 B
Notably Down
Very volatile
Total Current Liabilities288.5 B353.1 B
Significantly Down
Slightly volatile
Non Current Liabilities Total681.4 B766.6 B
Fairly Down
Slightly volatile
Long Term Debt10.3 B11.8 B
Fairly Down
Very volatile
Operating Income41.8 B39.8 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities109.2 B158.5 B
Way Down
Slightly volatile
Short Term Investments863.5 B822.3 B
Sufficiently Up
Slightly volatile
Long Term Investments2.5 T2.3 T
Sufficiently Up
Slightly volatile

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

About China Pacific 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

3.61 Billion

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

China Pacific 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 Pacific. 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.
202020212022202320242025 (projected)
Net Receivables26.4B57.6B67.8B74.8B86.0B90.3B
Total Revenue421.8B470.1B454.9B321.7B369.9B250.9B
Total Assets1.8T1.9T2.2T2.3T2.7T2.8T
Total Current Assets132.3B133.7B143.6B161.2B185.3B147.3B
Property Plant Equipment18.4B22.5B22.1B22.7B26.1B27.4B
Selling General Administrative53.0B50.2B52.8B4.2B4.9B4.6B
Total Current Liabilities267.5B293.5B323.2B307.1B353.1B288.5B
Long Term Debt10.0B10.0B10.0B10.3B11.8B10.3B
Total Cash From Operating Activities108.1B108.4B147.9B137.9B158.5B109.2B
Investments(191.1B)(128.3B)(169.0B)(161.4B)(145.2B)(152.5B)
Short Term Investments511.8B596.2B645.4B715.1B822.3B863.5B
Long Term Investments962.6B1.1T1.3T2.0T2.3T2.5T

China Pacific ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, China Pacific's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to China Pacific's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About China Pacific Fundamental Analysis

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

China Pacific 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 Pacific security.