Earnings Quality
Financial Forensics
Ranked vs Vietnamese peers. The −1.78 Beneish cutoff is US-calibrated; ~28% of VN stocks exceed it.
Checks measured on Vietnamese companies · FY2023
- Receivables outside the trade cyclePrepayments to suppliers, loans and other long-term receivables / total assets
- 56.3%98th pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 0.37×
- Consecutive years of net lossProfit after tax of the parent
- 2
- Owner's equityWithout the non-controlling interest
- Positive
Percentiles rank each fiscal year against Vietnamese non-financial companies (0 lowest, 100 highest). Over FY2015-2024, low cash conversion and a large share of receivables outside the trade cycle came before more listing trouble and more net losses the next year.
Statutory loss tests (Decree 155/2020/NĐ-CP, Art. 120(1)(e), amended by Decree 245/2025/NĐ-CP): a HOSE or HNX listing is cancelled when the audited annual statements show net losses in each of the latest 3 years, accumulated losses above the paid-in charter capital, or negative owner's equity. Read here from the annual statements as the data vendor publishes them. The company trades on UPCoM, where these tests do not apply.
The company's Beneish M-Score is -0.7519, which sits in the 88th percentile versus Vietnamese peers and moved by -1.55 year-over-year (the M-Score components show a high DSRI of 1.6225 and a very high GMI of 4.9016). Earnings-quality metrics are mixed: accruals quality is high (100.0/100) but cash conversion, receivables quality, margin quality score 0.0/100 while revenue quality is 88.3/100. Financial-health signals are weak: Altman Z-Score = -0.52 (distress zone) and Piotroski F-Score = 2/9 (weak fundamentals).
- Beneish M-Score = -0.7519 (88th percentile vs. Vietnamese peers; year-over-year change = -1.55). The M-Score combines eight ratios that screen for earnings manipulation; the company is high versus VN peers and moved substantially in one year (note the US cutoff of -1.78 is from an older US sample and ~28% of Vietnamese stocks cross that threshold).
- Days-Sales Receivable Index (DSRI) = 1.6225. DSRI measures growth in receivables relative to sales; a value >1 indicates receivables growing faster than sales, consistent with the flagged 56.3% of total assets in receivables/prepayments/loans (see checks).
- Gross Margin Index (GMI) = 4.9016. GMI >1 indicates gross margins have fallen year-over-year; such a large value signals material margin deterioration.
- SGA Index (SGAI) = 1.9424. SGAI >1 shows selling, general & administrative expenses grew faster than sales, weighing on profitability.
- LVGI = 1.1742 (levg increase). LVGI >1 indicates rising leverage, consistent with weak solvency signals.
- TATA = -0.0596 (total accruals to assets slightly negative). Although accruals quality scores 100/100, the negative TATA may reflect operating cash shortfalls funding reported profits.
- Earnings-quality composite: Cash conversion = 0.0/100; Receivables quality = 0.0/100; Margin quality = 0.0/100. These three zeros indicate weak convertibility of reported profits to cash, poor receivables attributes, and deteriorating margins.
- Altman Z-Score = -0.52 (distress zone). The Z-Score measures distance to bankruptcy; a negative value indicates elevated distress risk on the balance-sheet metrics it uses.
- Piotroski F-Score = 2/9. This low score signals weak operating performance, profitability, liquidity and/or efficiency relative to the Piotroski qualitative checklist.
- Receivables outside the trade cycle = 56.3% of total assets (98th percentile among Vietnamese non-financials). The company has a very large stock of prepayments, loans receivable and other long-term receivables relative to assets, which raises questions about the quality and collectibility of those balances.
- Accumulated losses = 0.37x paid-in capital and net loss at parent level for 2 consecutive years up to FY2023. These are material loss history indicators; owner’s equity (excluding minorities) remains positive but the company has suffered sustained parent-level losses.
- Accruals quality = 100.0/100. This indicates the measured accrual component of earnings appears clean by the applied accruals metric.
- Revenue quality = 88.3/100. This suggests reported revenue patterns are relatively robust by that revenue-quality measure despite weak receivables and margins.
- DEPI = 1.0000. Depreciation index at 1.0 implies no aggressive change in depreciation policy between periods in that component.
- Owner’s equity (without minority interest) is positive. Despite accumulated losses and consecutive parent-level net losses, reported equity remains on the positive side.
Ownership is concentrated in a few individuals: Đoàn Quốc Khánh 20.2%, Đỗ Thị Cẩm Thúy 11.8%, and three other individuals holding between 4.9%–5.7%. No state or large institutional block is shown in the provided list; concentrated individual ownership increases the influence of a few insiders. No director-deal registrations were provided in the data.
- Compare the FY2023 line-items and notes for 'Receivables', 'Prepayments to suppliers', 'Loans receivable' and 'Other long-term receivables' to reconcile the 56.3% of total assets figure and identify counterparties and maturities.
- Inspect the related-party disclosures and the schedule of receivables/loans to see what portion of receivables outside the trade cycle are with related parties or affiliates.
- Review the parent-company (owner) profit (loss) and consolidated statements and the accumulated losses reconciliation to confirm the 0.37x paid-in capital ratio and the two consecutive years of net loss at parent level.
- Check the cash-flow statement and the operating cash conversion note to reconcile the 0.0/100 cash-conversion score with reported cash from operations, and compare operating cash flow to net income for FY2023 and prior years.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
- P/B
- —
- P/S
- —
- ROE
- 0.0%
- ROA
- 0.0%
- Gross Margin
- 0.0%
- Net Margin
- 0.0%
- D/E
- —
- Current Ratio
- 0.00
- EV/EBITDA
- —
- Div Yield
- —
Company Overview
- Shares outstanding
- 16.8M
- Charter Capital
- 168B VND
- Sector (ICB L2)
- Tài nguyên Cơ bản
- Industry (ICB L3)
- Khai khoáng
- Sub-industry
- Khai khoáng
- Company Type
- CT