Yao I Fabric Co (ROCO:4430) Beneish M-Score : -2.60 (As of Jun. 05, 2024)

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What is Yao I Fabric 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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ROCO:4430' s Beneish M-Score Range Over the Past 10 Years
Min: -3.47 Med: -2.41 Max: -1.94
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Yao I Fabric Co was -1.94. The lowest was -3.47. And the median was -2.41.

Yao I Fabric Co Beneish M-Score Historical Data

The historical data trend for Yao I Fabric 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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Yao I Fabric Co Beneish M-Score Chart

Yao I Fabric Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.37

-2.28

-2.56

-3.07

-2.04

Yao I Fabric Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.86	-2.97	-2.40	-2.04	-2.60

Competitive Comparison of Yao I Fabric Co's Beneish M-Score

For the Textile Manufacturing subindustry, Yao I Fabric 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.

Yao I Fabric Co's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Yao I Fabric Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Yao I Fabric Co's Beneish M-Score falls into.

Yao I Fabric 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 Yao I Fabric 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 * 0.9529

0.528 * 1.3768

0.404 * 1.2095

0.892 * 0.9255

0.115 * 0.9419

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0222

4.679 * -0.06042

0.327 * 1.0073

-2.60

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$383 Mil.
Revenue was 479.05 + 436.756 + 458.696 + 457.168 = NT$1,832 Mil.
Gross Profit was 84.211 + 42.451 + 55.294 + 68.088 = NT$250 Mil.
Total Current Assets was NT$1,447 Mil.
Total Assets was NT$3,600 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,899 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$200 Mil.
Selling, General, & Admin. Expense(SGA) was NT$387 Mil.
Total Current Liabilities was NT$1,333 Mil.
Long-Term Debt & Capital Lease Obligation was NT$332 Mil.
Net Income was -3.825 + -66.605 + -43.226 + -32.19 = NT$-146 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -6.806 + -18.656 + 17.524 + 79.586 = NT$72 Mil.

Total Receivables was NT$434 Mil.
Revenue was 544.715 + 422.77 + 484.696 + 526.904 = NT$1,979 Mil.
Gross Profit was 109.458 + 62.202 + 89.596 + 110.713 = NT$372 Mil.
Total Current Assets was NT$1,620 Mil.
Total Assets was NT$3,876 Mil.
Property, Plant and Equipment(Net PPE) was NT$2,030 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$200 Mil.
Selling, General, & Admin. Expense(SGA) was NT$409 Mil.
Total Current Liabilities was NT$1,302 Mil.
Long-Term Debt & Capital Lease Obligation was NT$477 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)
	=	(382.69 / 1831.67)	/	(433.942 / 1979.085)
	=	0.20893	/	0.219264
	=	0.9529

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)
	=	(371.969 / 1979.085)	/	(250.044 / 1831.67)
	=	0.18795	/	0.136511
	=	1.3768

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 - (1446.547 + 1899.117) / 3599.68)	/	(1 - (1620.143 + 2029.572) / 3875.842)
	=	0.070566	/	0.058343
	=	1.2095

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
	=	1831.67	/	1979.085
	=	0.9255

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))
	=	(200.472 / (200.472 + 2029.572))	/	(200.38 / (200.38 + 1899.117))
	=	0.089896	/	0.095442
	=	0.9419

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)
	=	(387.258 / 1831.67)	/	(409.329 / 1979.085)
	=	0.211423	/	0.206827
	=	1.0222

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)
	=	((331.59 + 1332.785) / 3599.68)	/	((476.664 + 1302.416) / 3875.842)
	=	0.462367	/	0.459018
	=	1.0073

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
	=	(-145.846 - 0	-	71.648)	/	3599.68
	=	-0.06042

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.

Yao I Fabric Co has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.

Yao I Fabric Co Beneish M-Score Related Terms

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Yao I Fabric Co (ROCO:4430) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Yao I Fabric Co Ltd (ROCO:4430) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Zhangmei Road, Hemei Town, No. 334, Section 6, Chang Hua, TWN, 508

Website

http://www.yaoi.com.tw

Yao I Fabric Co Ltd is engaged in the manufacturing and export of tennis strings, badminton lines, fishing lines, industrial lines as well as nylon lines. The company operates in two business groups, such as filament and staple business groups. Its filament business includes trimmer line, monofilament, elastic mesh fabric, sporting goods, bedclothes, pet goods. The staple business includes staple fiber, automobile nonwovens.

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