Inventec (TPE:2356) Beneish M-Score : -2.38 (As of May. 13, 2024)

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What is Inventec 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:2356' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95 Med: -2.38 Max: -1.93
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Inventec was -1.93. The lowest was -2.95. And the median was -2.38.

Inventec Beneish M-Score Historical Data

The historical data trend for Inventec'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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Inventec Beneish M-Score Chart

Inventec Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-2.23

-2.07

-2.89

-2.38

Inventec Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.89	-2.97	-2.71	-2.61	-2.38

Competitive Comparison of Inventec's Beneish M-Score

For the Computer Hardware subindustry, Inventec'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.

Inventec's Beneish M-Score Distribution in the Hardware Industry

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

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

Inventec 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 Inventec 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 * 1.0859

0.528 * 0.9381

0.404 * 1.6083

0.892 * 0.9502

0.115 * 0.7766

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0966

4.679 * -0.02181

0.327 * 0.9972

-2.38

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was NT$93,953 Mil.
Revenue was 128071.274 + 135840.675 + 130651.347 + 120182.904 = NT$514,746 Mil.
Gross Profit was 7314.797 + 7083.255 + 6018.215 + 5921.876 = NT$26,338 Mil.
Total Current Assets was NT$192,206 Mil.
Total Assets was NT$239,708 Mil.
Property, Plant and Equipment(Net PPE) was NT$31,404 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$3,512 Mil.
Selling, General, & Admin. Expense(SGA) was NT$7,550 Mil.
Total Current Liabilities was NT$169,303 Mil.
Long-Term Debt & Capital Lease Obligation was NT$3,537 Mil.
Net Income was 1986.716 + 1873.114 + 1390.219 + 880.683 = NT$6,131 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -2478.545 + -908.969 + 264.223 + 14482.133 = NT$11,359 Mil.

Total Receivables was NT$91,061 Mil.
Revenue was 134756.958 + 142452.075 + 135746.794 + 128795.023 = NT$541,751 Mil.
Gross Profit was 7009.217 + 7339.927 + 5922.691 + 5731.307 = NT$26,003 Mil.
Total Current Assets was NT$190,194 Mil.
Total Assets was NT$234,216 Mil.
Property, Plant and Equipment(Net PPE) was NT$34,241 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,901 Mil.
Selling, General, & Admin. Expense(SGA) was NT$7,246 Mil.
Total Current Liabilities was NT$155,983 Mil.
Long-Term Debt & Capital Lease Obligation was NT$13,376 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)
	=	(93952.846 / 514746.2)	/	(91061.388 / 541750.85)
	=	0.182523	/	0.168087
	=	1.0859

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)
	=	(26003.142 / 541750.85)	/	(26338.143 / 514746.2)
	=	0.047998	/	0.051167
	=	0.9381

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 - (192205.903 + 31403.928) / 239707.976)	/	(1 - (190194.241 + 34241.337) / 234215.605)
	=	0.067157	/	0.041757
	=	1.6083

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
	=	514746.2	/	541750.85
	=	0.9502

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))
	=	(2901.368 / (2901.368 + 34241.337))	/	(3511.939 / (3511.939 + 31403.928))
	=	0.078114	/	0.100583
	=	0.7766

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)
	=	(7549.981 / 514746.2)	/	(7246.059 / 541750.85)
	=	0.014667	/	0.013375
	=	1.0966

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)
	=	((3536.864 + 169302.667) / 239707.976)	/	((13376.216 + 155982.534) / 234215.605)
	=	0.721042	/	0.723089
	=	0.9972

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
	=	(6130.732 - 0	-	11358.842)	/	239707.976
	=	-0.02181

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.

Inventec has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.

Inventec Beneish M-Score Related Terms

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Inventec (TPE:2356) Business Description

Industry

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Traded in Other Exchanges

N/A

Address

No. 66, Hougang Street, Shinlin District, Taipei, TWN, 111059

Website

https://www.inventec.com

Inventec Corp is a Taiwan-based original design manufacturer of electronic products for use in consumer, commercial, and industrial applications. The company has two reportable segments: the core department and other departments. The company generates maximum revenue from the Core department segment, which manufactures and sells computer products. The other department segment develops and manufactures emerging environmental energy. Its products include notebook PCs, tablet PCs, desktop computers, computer peripherals, personal digital products, multimedia audio products, servers, switches, and data storage equipment. Its geographical segments are Taiwan; United States; Japan; Hong Kong, Macao, and Mainland China; and Other Countries.

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