SINOPEC Shangai Petrochemical Company, Ltd.
SHI Energy Oil & Gas Refining & Marketing
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SINOPEC Shangai Petrochemical Company, Ltd. (SHI) Beneish M-score
SINOPEC Shangai Petrochemical Company, Ltd.'s Beneish M-score for fiscal 2022 cannot be worked out: gross margin index cannot be worked out.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2021 | −3.15 | (1.45) |
| FY2019 | −1.69 | 0.91 |
| FY2018 | −2.60 | (0.30) |
| FY2017 | −2.31 | 0.57 |
| FY2016 | −2.87 | (2.36) |
| FY2015 | −0.51 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 3.03 | — | 2.78 | |
| Gross margin index | — | — | n/a | — |
| Asset quality index | 1.03 | — | 0.41 | |
| Sales growth index | 0.92 | — | 0.82 | |
| Depreciation index | 1.15 | — | 0.13 | |
| SG&A index | 0.82 | — | −0.14 | |
| Total accruals to total assets | 0.11 | — | 0.53 | |
| Leverage index | 1.02 | — | −0.33 | |
| Beneish M-score | n/a — gross margin index cannot be worked out | — | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| WKC World Kinect Corporation compare | −3.4× |
| CSANY Cosan S.A. Sponsored ADR compare | −3.4× |
| DK Delek US Holdings, Inc. compare | −3.3× |
| PARR Par Pacific Holdings, Inc. compare | −3.0× |
| UGP Ultrapar Participacoes S.A. compare | −2.7× |
| CVI CVR Energy Inc. compare | −2.7× |
| IEP Icahn Enterprises L.P. compare | −2.6× |
| DKL Delek Logistics Partners, L.P. compare | −0.5× |
| SHI SINOPEC Shangai Petrochemical Company, Ltd. | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI