Ningbo Fujia Industrial Stock Beneish M Score

603219 Stock   14.68  0.24  1.61%   
This module uses fundamental data of Ningbo Fujia to approximate the value of its Beneish M Score. Ningbo Fujia 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 Ningbo Fujia Industrial. 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, Ningbo Fujia's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 28.4 M, whereas Short and Long Term Debt Total is forecasted to decline to about 106 M.
At this time, Ningbo Fujia's M Score is inapplicable. The earnings manipulation may begin if Ningbo Fujia'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 Ningbo Fujia 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 Ningbo Fujia'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.
-3.66
Beneish M Score - Inapplicable
Elasticity of Receivables

0.96

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.85

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.85

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.79

Focus
Financial Leverage Condition

1.03

Focus

Ningbo Fujia 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 Ningbo Fujia'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 Receivables585.9 M769.7 M
Way Down
Slightly volatile
Total Revenue2.1 B2.7 B
Significantly Down
Slightly volatile
Total AssetsB2.7 B
Way Down
Slightly volatile
Total Current Assets1.4 BB
Way Down
Slightly volatile
Non Current Assets Total570.8 M734.9 M
Significantly Down
Slightly volatile
Depreciation And Amortization82.8 M78.8 M
Sufficiently Up
Slightly volatile
Selling General Administrative32.4 M47.9 M
Way Down
Slightly volatile
Total Current Liabilities874.1 MB
Fairly Down
Slightly volatile
Non Current Liabilities Total46.2 M32.7 M
Significantly Up
Slightly volatile
Short Term Debt247.9 M138.6 M
Way Up
Slightly volatile
Long Term Debt28.4 M24.2 M
Fairly Up
Slightly volatile
Operating Income244.4 M319.2 M
Way Down
Slightly volatile
Short Term Investments4.7 MM
Notably Down
Slightly volatile

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

About Ningbo Fujia 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

82.79 Million

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

Ningbo Fujia 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 Ningbo Fujia. 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 Revenue1.1B2.1B2.6B2.7B2.7B2.1B
Total Assets1.2B1.8B2.4B2.3B2.7B2.0B
Total Current Assets687.7M1.3B1.9B1.7B2.0B1.4B
Non Current Assets Total504.1M554.2M521.8M606.9M734.9M570.8M
Depreciation And Amortization27.8M60.5M9.7M68.6M78.8M82.8M
Selling General Administrative34.2M31.0M19.4M18.0M47.9M32.4M
Total Current Liabilities554.4M1.1B1.1B783.8M1.0B874.1M
Non Current Liabilities Total41.8M41.5M40.1M25.9M32.7M46.2M
Net Debt167.6M103.3M(57.2M)(522.8M)(470.6M)(447.0M)
Short Term Debt205.3M382.3M344.3M120.5M138.6M247.9M
Operating Income98.0M197.2M270.0M396.6M319.2M244.4M
Total Cash From Operating Activities66.3M188.4M(101.5M)563.8M368.9M211.8M

About Ningbo Fujia Fundamental Analysis

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

Ningbo Fujia financial ratios help investors to determine whether Ningbo 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 Ningbo with respect to the benefits of owning Ningbo Fujia security.