GURUFOCUS.COM » STOCK LIST » USA » NAS » Transphorm Inc (NAS:TGAN) » Definitions » Beneish M-Score
Switch to:

Transphorm Beneish M-Score

: -0.95 (As of Today)
View and export this data going back to 2020. Start your Free Trial

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.

Warning Sign:

Beneish M-Score -0.95 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TGAN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.44   Med: -0.53   Max: 1.61
Current: -0.95

During the past 3 years, the highest Beneish M-Score of Transphorm was 1.61. The lowest was -2.44. And the median was -0.53.


Transphorm Beneish M-Score Historical Data

The historical data trend for Transphorm'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.

Transphorm Annual Data
Trend Dec19 Dec20 Mar22
Beneish M-Score
- - -0.92

Transphorm Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score 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 1.61 -0.53 -0.48 -0.92 -0.95

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Transphorm'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.

   

Transphorm Beneish M-Score Distribution

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

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



Transphorm 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 Transphorm 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 * 0.5256+0.528 * 0.2828+0.404 * 0.2038+0.892 * 2.7121+0.115 * 1.9678
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4417+4.679 * 0.1376-0.327 * 0.1066
=-0.95

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $3.20 Mil.
Revenue was 5.156 + 4.927 + 4.604 + 11.303 = $25.99 Mil.
Gross Profit was 1.106 + 1.138 + 0.669 + 9.064 = $11.98 Mil.
Total Current Assets was $55.85 Mil.
Total Assets was $63.73 Mil.
Property, Plant and Equipment(Net PPE) was $5.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.02 Mil.
Selling, General, & Admin. Expense(SGA) was $15.73 Mil.
Total Current Liabilities was $18.85 Mil.
Long-Term Debt & Capital Lease Obligation was $2.94 Mil.
Net Income was -5.353 + -4.999 + -4.164 + 5.98 = $-8.54 Mil.
Non Operating Income was -0.137 + -0.36 + 0.791 + 2.266 = $2.56 Mil.
Cash Flow from Operations was -4.913 + -5.826 + -5.298 + -3.829 = $-19.87 Mil.
Total Receivables was $2.25 Mil.
Revenue was 3.216 + 2.425 + 2.013 + 1.929 = $9.58 Mil.
Gross Profit was 0.649 + 0.637 + 0.077 + -0.114 = $1.25 Mil.
Total Current Assets was $9.79 Mil.
Total Assets was $14.03 Mil.
Property, Plant and Equipment(Net PPE) was $1.83 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.79 Mil.
Selling, General, & Admin. Expense(SGA) was $13.13 Mil.
Total Current Liabilities was $15.85 Mil.
Long-Term Debt & Capital Lease Obligation was $29.19 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)
=(3.203 / 25.99) / (2.247 / 9.583)
=0.12323971 / 0.23447772
=0.5256

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)
=(1.249 / 9.583) / (11.977 / 25.99)
=0.13033497 / 0.46083109
=0.2828

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 - (55.854 + 5.647) / 63.73) / (1 - (9.793 + 1.832) / 14.034)
=0.03497568 / 0.17165455
=0.2038

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
=25.99 / 9.583
=2.7121

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))
=(0.791 / (0.791 + 1.832)) / (1.022 / (1.022 + 5.647))
=0.3015631 / 0.15324636
=1.9678

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)
=(15.731 / 25.99) / (13.132 / 9.583)
=0.60527126 / 1.37034332
=0.4417

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)
=((2.941 + 18.851) / 63.73) / ((29.19 + 15.847) / 14.034)
=0.34194257 / 3.20913496
=0.1066

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
=(-8.536 - 2.56 - -19.866) / 63.73
=0.1376

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.

Transphorm has a M-score of -0.95 signals that the company is likely to be a manipulator.


Transphorm Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Transphorm's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Transphorm Business Description

Transphorm logo
Traded in Other Exchanges
N/A
Address
75 Castilian Drive, Goleta, CA, USA, 93117
Transphorm Inc is a semiconductor company. It designs and manufactures GaN semiconductors for high-voltage power conversion applications. It produces JEDEC and AEC-Q101 qualified GaN FETs. Its vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support.
Executives
Kkr Group Co. Inc. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Moreland Cynthia J director 215 MOFFETT PARK DRIVE SUNNYVALE CA 94089
Smales Kelly director 75 CASTILIAN DRIVE GOLETA CA 93117
Mcfarland Katharina G. director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Humphreys Michael Julian director 75 CASTILIAN DRIVE GOLETA CA 93117
Parikh Primit officer: Chief Operating Officer 75 CASTILIAN DRIVE GOLETA CA 93117
Kravis Henry R 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Roberts George R 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 2800 SAND HILL ROAD MENLO PARK CA 94025
Kkr & Co. Inc. 10 percent owner 30 HUDSON YARDS NEW YORK NY 10001
Kkr Phorm Investors Gp Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Phorm Investors L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Wingtech Technology Co. Ltd. 10 percent owner 4F-6F, BUILDING 4 OF JUXIN YUAN, NO. 188 PINGFU ROAD, XUHUI DISTRICT SHANGHAI F4 200231
Nexperia B.v. 10 percent owner JONKERBOSPLEIN 52 AB NIJMEGEN P7 6534
Yatagawa Eiji director 75 CASTILIAN DRIVE GOLETA CA 93117
Mcaulay Cameron officer: Chief Financial Officer 75 CASTILIAN DRIVE GOLETA CA 93117

Transphorm Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)