Lixiang Education Holding Stock Beneish M Score

LXEH Stock  USD 2.49  0.02  0.80%   
This module uses fundamental data of Lixiang Education to approximate the value of its Beneish M Score. Lixiang Education 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 Lixiang Education Piotroski F Score and Lixiang Education Altman Z Score analysis.
  
As of now, Lixiang Education's Debt To Equity is decreasing as compared to previous years. The Lixiang Education's current Interest Debt Per Share is estimated to increase to 129.37, while Net Debt is forecasted to increase to (141.9 M). As of now, Lixiang Education's Net Debt To EBITDA is decreasing as compared to previous years. The Lixiang Education's current Current Ratio is estimated to increase to 2.49, while Price To Sales Ratio is projected to decrease to 2.63.
At this time, it appears that Lixiang Education Holding is a possible manipulator. The earnings manipulation may begin if Lixiang Education'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 Lixiang Education 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 Lixiang Education'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.
-1.55
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.6

Focus
Asset Quality

2.36

Focus
Expense Coverage

0.56

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

0.56

Focus
Depreciation Resistance

1.32

Focus
Net Sales Growth

1.58

Focus
Financial Leverage Condition

-0.87

Focus

Lixiang Education 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 Lixiang Education'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 Receivables8.9 K9.4 K
Notably Down
Slightly volatile
Total Revenue80.2 M50.8 M
Way Up
Slightly volatile
Total Assets477.6 M434 M
Significantly Up
Slightly volatile
Total Current Assets215.7 M244.9 M
Fairly Down
Slightly volatile
Non Current Assets Total190.5 M189.1 M
Slightly Up
Slightly volatile
Property Plant Equipment151.2 M150.9 M
Slightly Up
Slightly volatile
Depreciation And Amortization8.4 M11.3 M
Way Down
Slightly volatile
Selling General Administrative22.5 M25.4 M
Fairly Down
Slightly volatile
Total Current Liabilities185.9 M103.2 M
Way Up
Pretty Stable
Non Current Liabilities Total88.7 M173.7 M
Way Down
Slightly volatile
Short Term Debt73.5 M77.7 M
Notably Down
Very volatile
Long Term Debt1.3 M1.4 M
Fairly Down
Slightly volatile
Gross Profit Margin0.07410.078
Notably Down
Slightly volatile

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

About Lixiang Education 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

8.4 Million

As of now, Lixiang Education's Depreciation And Amortization is decreasing as compared to previous years.

Lixiang Education 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 Lixiang Education. 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 Receivables14.4M5.2M193.0K28.3M9.4K8.9K
Total Revenue13.4M25.7M34.4M49.2M50.8M80.2M
Total Assets303.3M460.0M532.7M608.9M434.0M477.6M
Total Current Assets60.3M216.8M301.1M329.6M244.9M215.7M
Net Debt58.9M(173.1M)(122.4M)(166.3M)(149.3M)(141.9M)
Short Term Debt83.6M24.9M77M68.7M77.7M73.5M
Operating Income6.5M4.8M(1.3M)(24.6M)(109.3M)(103.8M)
Investments(34.7M)20M(155.1M)(456.4K)(7.6M)(8.0M)
Gross Profit Margin0.650.580.50.160.0780.0741

Lixiang Education 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, Lixiang Education's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Lixiang Education's managers, analysts, and investors.
Environmental
Governance
Social

About Lixiang Education Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Lixiang Education Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lixiang Education's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lixiang Education Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lixiang Education Holding Stock:
Is Hotels, Restaurants & Leisure 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 Lixiang Education. If investors know Lixiang 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 Lixiang Education 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
(0.23)
Earnings Share
(17.53)
Revenue Per Share
39.489
Quarterly Revenue Growth
(0.41)
Return On Assets
(0.11)
The market value of Lixiang Education Holding is measured differently than its book value, which is the value of Lixiang that is recorded on the company's balance sheet. Investors also form their own opinion of Lixiang Education's value that differs from its market value or its book value, called intrinsic value, which is Lixiang Education'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 Lixiang Education's market value can be influenced by many factors that don't directly affect Lixiang Education'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 Lixiang Education's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lixiang Education is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lixiang Education'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.