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JL (J-Long Group) Beneish M-Score : -2.55 (As of Oct. 09, 2024)


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What is J-Long Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for J-Long Group's Beneish M-Score or its related term are showing as below:

JL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.55   Med: 0.24   Max: 3.03
Current: -2.55

During the past 4 years, the highest Beneish M-Score of J-Long Group was 3.03. The lowest was -2.55. And the median was 0.24.

J-Long Group Beneish M-Score Historical Data

The historical data trend for J-Long Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

J-Long Group Beneish M-Score Chart

J-Long Group Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Beneish M-Score
- - 3.03 -2.55

J-Long Group Semi-Annual Data
Mar21 Mar22 Sep22 Mar23 Sep23 Mar24
Beneish M-Score Get a 7-Day Free Trial - - 3.03 - -2.55

Competitive Comparison of J-Long Group's Beneish M-Score

For the Apparel Manufacturing subindustry, J-Long Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

J-Long Group's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, J-Long Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where J-Long Group's Beneish M-Score falls into.


J-Long Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of J-Long Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1844+0.528 * 1.0946+0.404 * 0.1175+0.892 * 0.7411+0.115 * 1.0171
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.3485+4.679 * 0.104534-0.327 * 0.8855
=-2.55

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $4.06 Mil.
Revenue was $28.38 Mil.
Gross Profit was $6.80 Mil.
Total Current Assets was $14.28 Mil.
Total Assets was $16.89 Mil.
Property, Plant and Equipment(Net PPE) was $2.51 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.15 Mil.
Selling, General, & Admin. Expense(SGA) was $6.05 Mil.
Total Current Liabilities was $5.34 Mil.
Long-Term Debt & Capital Lease Obligation was $1.38 Mil.
Net Income was $0.78 Mil.
Gross Profit was $0.52 Mil.
Cash Flow from Operations was $-1.50 Mil.
 Total Receivables was $4.63 Mil.
Revenue was $38.29 Mil.
Gross Profit was $10.04 Mil.
Total Current Assets was $16.72 Mil.
Total Assets was $20.61 Mil.
Property, Plant and Equipment(Net PPE) was $2.82 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.17 Mil.
Selling, General, & Admin. Expense(SGA) was $3.48 Mil.
Total Current Liabilities was $7.16 Mil.
Long-Term Debt & Capital Lease Obligation was $2.10 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(4.064 / 28.379) / (4.63 / 38.292)
=0.143204 / 0.120913
=1.1844

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(10.039 / 38.292) / (6.797 / 28.379)
=0.26217 / 0.239508
=1.0946

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (14.281 + 2.51) / 16.894) / (1 - (16.722 + 2.815) / 20.606)
=0.006097 / 0.051878
=0.1175

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=28.379 / 38.292
=0.7411

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.169 / (0.169 + 2.815)) / (0.148 / (0.148 + 2.51))
=0.056635 / 0.055681
=1.0171

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(6.05 / 28.379) / (3.476 / 38.292)
=0.213186 / 0.090776
=2.3485

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1.382 + 5.339) / 16.894) / ((2.103 + 7.155) / 20.606)
=0.397834 / 0.449287
=0.8855

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(0.784 - 0.518 - -1.5) / 16.894
=0.104534

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

J-Long Group has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.

J-Long Group Beneish M-Score Related Terms

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J-Long Group Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » J-Long Group Ltd (NAS:JL) » Definitions » Beneish M-Score
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Traded in Other Exchanges
N/A
Address
32-40 Wang Lung Street, Flat F, 8th Floor, Houston Industrial Building, Tsuen Wan New Territories, Hong Kong, HKG
Website
https://www.j-long.com
J-Long Group Ltd is an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. It also offers a wide range of apparel solution services to cater to its customers' needs for reflective and non-reflective garment trims, ranging from market trend analysis, product design and development and production to quality control.