Elite Material Co (TPE:2383) Beneish M-Score : -2.13 (As of May. 20, 2024)

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What is Elite Material Co 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 -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Elite Material Co's Beneish M-Score or its related term are showing as below:

TPE:2383' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.38 Max: -1.92
Current: -2.13

During the past 13 years, the highest Beneish M-Score of Elite Material Co was -1.92. The lowest was -3.19. And the median was -2.38.

Elite Material Co Beneish M-Score Historical Data

The historical data trend for Elite Material Co'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.

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Elite Material Co Beneish M-Score Chart

Elite Material Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.22

-2.33

-2.06

-2.07

-2.91

Elite Material Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.91	-3.19	-2.88	-2.52	-2.13

Competitive Comparison of Elite Material Co's Beneish M-Score

For the Electronic Components subindustry, Elite Material Co'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.

Elite Material Co's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Elite Material Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Elite Material Co's Beneish M-Score falls into.

Elite Material Co 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 Elite Material Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.4662

0.528 * 0.9084

0.404 * 0.7407

0.892 * 1.0684

0.115 * 0.7566

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0229

4.679 * 0.021298

0.327 * 1.1553

-2.13

This Year (Mar24) TTM:

Last Year (Dec22) TTM:

Total Receivables was NT$18,378 Mil.
Revenue was 12902.46 + 11874.501 + 9180.446 + 7359.127 = NT$41,317 Mil.
Gross Profit was 3738.144 + 3584.128 + 2525.129 + 1572.042 = NT$11,419 Mil.
Total Current Assets was NT$38,354 Mil.
Total Assets was NT$59,277 Mil.
Property, Plant and Equipment(Net PPE) was NT$19,391 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,320 Mil.
Selling, General, & Admin. Expense(SGA) was NT$2,767 Mil.
Total Current Liabilities was NT$29,830 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2,199 Mil.
Net Income was 1978.282 + 2022.431 + 1000.301 + 479.696 = NT$5,481 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 1797.208 + -76.423 + 406.23 + 2091.182 = NT$4,218 Mil.

Total Receivables was NT$11,733 Mil.
Revenue was 8888.035 + 9882.771 + 9983.283 + 9918.46 = NT$38,673 Mil.
Gross Profit was 2386.676 + 2548.738 + 2296.802 + 2477.846 = NT$9,710 Mil.
Total Current Assets was NT$26,580 Mil.
Total Assets was NT$43,382 Mil.
Property, Plant and Equipment(Net PPE) was NT$15,289 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$774 Mil.
Selling, General, & Admin. Expense(SGA) was NT$2,532 Mil.
Total Current Liabilities was NT$15,760 Mil.
Long-Term Debt & Capital Lease Obligation was NT$4,529 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)
	=	(18378.331 / 41316.534)	/	(11732.558 / 38672.549)
	=	0.444818	/	0.303382
	=	1.4662

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)
	=	(9710.062 / 38672.549)	/	(11419.443 / 41316.534)
	=	0.251084	/	0.276389
	=	0.9084

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 - (38353.926 + 19391.45) / 59277.098)	/	(1 - (26579.957 + 15289.054) / 43382.487)
	=	0.02584	/	0.034887
	=	0.7407

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
	=	41316.534	/	38672.549
	=	1.0684

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))
	=	(774.483 / (774.483 + 15289.054))	/	(1319.877 / (1319.877 + 19391.45))
	=	0.048214	/	0.063727
	=	0.7566

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)
	=	(2766.502 / 41316.534)	/	(2531.576 / 38672.549)
	=	0.066959	/	0.065462
	=	1.0229

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)
	=	((2198.829 + 29829.734) / 59277.098)	/	((4529.004 + 15760.024) / 43382.487)
	=	0.540319	/	0.467678
	=	1.1553

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
	=	(5480.71 - 0	-	4218.197)	/	59277.098
	=	0.021298

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.

Elite Material Co has a M-score of -2.13 suggests that the company is unlikely to be a manipulator.

Elite Material Co Beneish M-Score Related Terms

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Elite Material Co (TPE:2383) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Elite Material Co Ltd (TPE:2383) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 18, Datong 1st Road, Guanyin District, Taoyuan, TWN, 328

Website

https://www.emctw.com

Elite Material Co Ltd is engaged in the manufacturing and selling of printed circuit boards, copper-clad laminates, electronic-industrial specialty chemicals and raw materials, work-in-progress, and finished goods of electronic components. The Group has three reportable segments: The domestic segment produces and sells different types of printed circuit board products, electronic-industrial specialty chemicals, and electronic components, the Foreign segment produces and sells prepreg for printed circuit board and copper-clad laminate, and Other segments include investment and product exchange business. Geographically, It operates in Taiwan, China, and Other countries.

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