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New Palace International Co (TPE:8940) Beneish M-Score : -2.13 (As of May. 13, 2024)


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What is New Palace International 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 New Palace International Co's Beneish M-Score or its related term are showing as below:

TPE:8940' s Beneish M-Score Range Over the Past 10 Years
Min: -4.04   Med: -2.91   Max: 0.74
Current: -2.13

During the past 13 years, the highest Beneish M-Score of New Palace International Co was 0.74. The lowest was -4.04. And the median was -2.91.


New Palace International Co Beneish M-Score Historical Data

The historical data trend for New Palace International 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.

* Premium members only.

New Palace International Co Beneish M-Score Chart

New Palace International Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.84 -2.45 -3.05 -2.48 -2.46

New Palace International 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.50 -0.45 -2.47 -2.46 -2.13

Competitive Comparison of New Palace International Co's Beneish M-Score

For the Restaurants subindustry, New Palace International 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.


New Palace International Co's Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, New Palace International Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where New Palace International Co's Beneish M-Score falls into.



New Palace International 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 New Palace International Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4864+0.528 * 0.9368+0.404 * 0.7412+0.892 * 1.6136+0.115 * 0.8035
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8655+4.679 * -0.117457-0.327 * 0.8852
=-2.13

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was NT$60 Mil.
Revenue was 627.7 + 519.567 + 288.515 + 316.561 = NT$1,752 Mil.
Gross Profit was 347.589 + 288.581 + 138.405 + 162.003 = NT$937 Mil.
Total Current Assets was NT$468 Mil.
Total Assets was NT$2,129 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,513 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$205 Mil.
Selling, General, & Admin. Expense(SGA) was NT$702 Mil.
Total Current Liabilities was NT$459 Mil.
Long-Term Debt & Capital Lease Obligation was NT$738 Mil.
Net Income was 77.807 + 58.737 + -7.043 + 4.895 = NT$134 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 91.481 + 181.228 + 31.824 + 79.937 = NT$384 Mil.
Total Receivables was NT$25 Mil.
Revenue was 416.243 + 383.256 + 175.153 + 111.332 = NT$1,086 Mil.
Gross Profit was 222.834 + 210.608 + 74.92 + 35.397 = NT$544 Mil.
Total Current Assets was NT$372 Mil.
Total Assets was NT$2,058 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,493 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$158 Mil.
Selling, General, & Admin. Expense(SGA) was NT$503 Mil.
Total Current Liabilities was NT$454 Mil.
Long-Term Debt & Capital Lease Obligation was NT$853 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)
=(60.466 / 1752.343) / (25.211 / 1085.984)
=0.034506 / 0.023215
=1.4864

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)
=(543.759 / 1085.984) / (936.578 / 1752.343)
=0.500706 / 0.534472
=0.9368

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 - (468.048 + 1513.262) / 2129.06) / (1 - (372.365 + 1493.303) / 2058.377)
=0.069397 / 0.093622
=0.7412

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
=1752.343 / 1085.984
=1.6136

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))
=(158.303 / (158.303 + 1493.303)) / (204.976 / (204.976 + 1513.262))
=0.095848 / 0.119294
=0.8035

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)
=(702.311 / 1752.343) / (502.893 / 1085.984)
=0.400784 / 0.463076
=0.8655

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)
=((738.081 + 458.606) / 2129.06) / ((852.97 + 454.014) / 2058.377)
=0.562073 / 0.634959
=0.8852

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
=(134.396 - 0 - 384.47) / 2129.06
=-0.117457

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.

New Palace International Co has a M-score of -2.13 suggests that the company is unlikely to be a manipulator.


New Palace International Co Beneish M-Score Related Terms

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New Palace International Co (TPE:8940) Business Description

Traded in Other Exchanges
N/A
Address
No. 456, Hanxi East Road, Section 1, East District, Taichang, TWN, 401
New Palace International Co Ltd is a Taiwan based company engaged in the catering industry. Its products and services include the provision of traditional catering services, banquets, and buffets.

New Palace International Co (TPE:8940) Headlines

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