Dimension Computer Technology Co (ROCO:6140) Beneish M-Score : -3.88 (As of May. 15, 2024)

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What is Dimension Computer Technology 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 -3.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ROCO:6140' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88 Med: -2.46 Max: -1.32
Current: -3.88

During the past 13 years, the highest Beneish M-Score of Dimension Computer Technology Co was -1.32. The lowest was -3.88. And the median was -2.46.

Dimension Computer Technology Co Beneish M-Score Historical Data

The historical data trend for Dimension Computer Technology 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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Dimension Computer Technology Co Beneish M-Score Chart

Dimension Computer Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.56

-1.38

-1.98

-2.90

-3.88

Dimension Computer Technology Co 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															-2.90	-2.10	-2.26	-2.12	-3.88

Competitive Comparison of Dimension Computer Technology Co's Beneish M-Score

For the Electronics & Computer Distribution subindustry, Dimension Computer Technology 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.

Dimension Computer Technology Co's Beneish M-Score Distribution in the Hardware Industry

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

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

Dimension Computer Technology 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 Dimension Computer Technology 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 * 0.8557

0.528 * 0.8498

0.404 * 1.7151

0.892 * 0.8116

0.115 * 1.01

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1693

4.679 * -0.269088

0.327 * 1.0638

-3.88

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was NT$580 Mil.
Revenue was 433.237 + 594.994 + 429.021 + 408.183 = NT$1,865 Mil.
Gross Profit was 51.025 + 45.514 + 30.237 + 46.161 = NT$173 Mil.
Total Current Assets was NT$1,829 Mil.
Total Assets was NT$2,088 Mil.
Property, Plant and Equipment(Net PPE) was NT$21 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$10 Mil.
Selling, General, & Admin. Expense(SGA) was NT$157 Mil.
Total Current Liabilities was NT$1,521 Mil.
Long-Term Debt & Capital Lease Obligation was NT$9 Mil.
Net Income was -3.255 + 24.587 + -12.474 + -3.686 = NT$5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 531.487 + 90.859 + -11.234 + -43.963 = NT$567 Mil.

Total Receivables was NT$834 Mil.
Revenue was 588.279 + 830.484 + 438.769 + 440.895 = NT$2,298 Mil.
Gross Profit was 46.748 + 55.952 + 43.351 + 35.019 = NT$181 Mil.
Total Current Assets was NT$1,667 Mil.
Total Assets was NT$1,805 Mil.
Property, Plant and Equipment(Net PPE) was NT$17 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$8 Mil.
Selling, General, & Admin. Expense(SGA) was NT$166 Mil.
Total Current Liabilities was NT$1,236 Mil.
Long-Term Debt & Capital Lease Obligation was NT$7 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)
	=	(579.533 / 1865.435)	/	(834.484 / 2298.427)
	=	0.310669	/	0.363067
	=	0.8557

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)
	=	(181.07 / 2298.427)	/	(172.937 / 1865.435)
	=	0.07878	/	0.092706
	=	0.8498

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 - (1828.795 + 20.613) / 2088.447)	/	(1 - (1667.141 + 17.465) / 1805.07)
	=	0.114458	/	0.066736
	=	1.7151

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
	=	1865.435	/	2298.427
	=	0.8116

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))
	=	(8.458 / (8.458 + 17.465))	/	(9.836 / (9.836 + 20.613))
	=	0.326274	/	0.323032
	=	1.01

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)
	=	(157.457 / 1865.435)	/	(165.921 / 2298.427)
	=	0.084408	/	0.072189
	=	1.1693

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)
	=	((9.294 + 1521.201) / 2088.447)	/	((7.48 + 1236.065) / 1805.07)
	=	0.732839	/	0.688918
	=	1.0638

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
	=	(5.172 - 0	-	567.149)	/	2088.447
	=	-0.269088

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.

Dimension Computer Technology Co has a M-score of -3.88 suggests that the company is unlikely to be a manipulator.

Dimension Computer Technology Co Beneish M-Score Related Terms

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Dimension Computer Technology Co (ROCO:6140) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Dimension Computer Technology Co Ltd (ROCO:6140) » Definitions » Beneish M-Score

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Address

No.147, Section 2, Jianguo North Road, 2nd Floor, Taipei, TWN

Website

https://www02.dimension.com.tw

Dimension Computer Technology Co Ltd operates as an e-solution provider in Taiwan. It offers services and products in the field of system integration. The company engages in the distribution of computer servers; and the provision of ongoing support for hardware structures and software applications to various industries. It offers solutions including Virtualization solutions, Lotus Notes Coexistence and Migration Solutions, Networks solutions, and others.

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