ASE Technology Holding Co (ASE Technology Holding Co) Beneish M-Score : -2.76 (As of Apr. 30, 2024)

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What is ASE Technology Holding 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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.54 Max: -1.49
Current: -2.76

During the past 13 years, the highest Beneish M-Score of ASE Technology Holding Co was -1.49. The lowest was -3.07. And the median was -2.54.

ASE Technology Holding Co Beneish M-Score Historical Data

The historical data trend for ASE Technology Holding 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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ASE Technology Holding Co Beneish M-Score Chart

ASE Technology Holding Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.99

-2.75

-2.55

-2.80

-2.99

ASE Technology Holding 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															-2.98	-3.00	-3.07	-2.99	-2.76

Competitive Comparison of ASE Technology Holding Co's Beneish M-Score

For the Semiconductors subindustry, ASE Technology Holding 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.

ASE Technology Holding Co's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ASE Technology Holding Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ASE Technology Holding Co's Beneish M-Score falls into.

ASE Technology Holding 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 ASE Technology Holding 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 * 1.1877

0.528 * 1.1984

0.404 * 1.0228

0.892 * 0.8622

0.115 * 0.9687

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0149

4.679 * -0.104649

0.327 * 0.9507

-2.80

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $3,069 Mil.
Revenue was 4190.374 + 5138.36 + 4811.179 + 4418.703 = $18,559 Mil.
Gross Profit was 658.454 + 824.317 + 777.568 + 704.95 = $2,965 Mil.
Total Current Assets was $8,614 Mil.
Total Assets was $21,503 Mil.
Property, Plant and Equipment(Net PPE) was $8,744 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,852 Mil.
Selling, General, & Admin. Expense(SGA) was $845 Mil.
Total Current Liabilities was $7,227 Mil.
Long-Term Debt & Capital Lease Obligation was $3,667 Mil.
Net Income was 179.286 + 419.977 + 273.878 + 250.969 = $1,124 Mil.
Non Operating Income was 45.5 + 11.011 + 65.349 + 58.332 = $180 Mil.
Cash Flow from Operations was 526.751 + 1498.419 + 651.614 + 517.372 = $3,194 Mil.

Total Receivables was $2,997 Mil.
Revenue was 4286.561 + 5788.018 + 6030.513 + 5419.706 = $21,525 Mil.
Gross Profit was 633.335 + 1112.442 + 1213.993 + 1161.643 = $4,121 Mil.
Total Current Assets was $8,884 Mil.
Total Assets was $22,120 Mil.
Property, Plant and Equipment(Net PPE) was $9,068 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,848 Mil.
Selling, General, & Admin. Expense(SGA) was $966 Mil.
Total Current Liabilities was $7,675 Mil.
Long-Term Debt & Capital Lease Obligation was $4,113 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)
	=	(3069.001 / 18558.616)	/	(2997 / 21524.798)
	=	0.165368	/	0.139235
	=	1.1877

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)
	=	(4121.413 / 21524.798)	/	(2965.289 / 18558.616)
	=	0.191473	/	0.15978
	=	1.1984

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 - (8614.116 + 8744.242) / 21502.632)	/	(1 - (8883.878 + 9067.797) / 22120.045)
	=	0.192733	/	0.188443
	=	1.0228

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
	=	18558.616	/	21524.798
	=	0.8622

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))
	=	(1848.192 / (1848.192 + 9067.797))	/	(1852.038 / (1852.038 + 8744.242))
	=	0.169311	/	0.174782
	=	0.9687

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)
	=	(845.205 / 18558.616)	/	(965.871 / 21524.798)
	=	0.045542	/	0.044872
	=	1.0149

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)
	=	((3666.715 + 7227.064) / 21502.632)	/	((4112.925 + 7675.044) / 22120.045)
	=	0.506625	/	0.532909
	=	0.9507

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
	=	(1124.11 - 180.192	-	3194.156)	/	21502.632
	=	-0.104649

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.

ASE Technology Holding Co has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.

ASE Technology Holding Co Beneish M-Score Related Terms

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ASE Technology Holding Co (ASE Technology Holding Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ASE Technology Holding Co Ltd (NYSE:ASX) » Definitions » Beneish M-Score

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Traded in Other Exchanges

3711:Taiwan 2DQ:Germany 2DQ:Germany

Address

No. 26, Chin Third Road, Nanzih District, Kaohsiung, TWN, 811

Website

https://www.aseglobal.com

ASE Technology Holding Co Ltd is a semiconductor assembly and testing firm. The company operates in segments: Packaging, Testing, and Electronic Manufacturing Services. Of these, packaging services contribute the most revenue. It involves packaging bare semiconductors into completed semiconductors with improved electrical and thermal characteristics. The Testing Segment includes front-end engineering testing, wafer probing, and final testing services. In the EMS segment, the company designs manufacture, and sells electronic components and telecommunication equipment motherboards. The company is based in Taiwan but garners over half its sales from firms in the United States.