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Taiwan Semiconductor Manufacturing Co Beneish M-Score

: -2.93 (As of Today)
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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 -2.93 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.12   Med: -3   Max: -1.68
Current: -2.93

During the past 13 years, the highest Beneish M-Score of Taiwan Semiconductor Manufacturing Co was -1.68. The lowest was -4.12. And the median was -3.00.


Taiwan Semiconductor Manufacturing Co Beneish M-Score Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing 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.

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.11 -2.90 -3.06 -3.08 -2.90

Taiwan Semiconductor Manufacturing Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.90 -2.97 -2.90 -2.96 -2.93

Competitive Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing 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.

   

Taiwan Semiconductor Manufacturing Co Beneish M-Score Distribution

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

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Beneish M-Score falls into.



Taiwan Semiconductor Manufacturing 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 Taiwan Semiconductor Manufacturing 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 * 0.9083+0.528 * 0.9553+0.404 * 1.1638+0.892 * 1.2893+0.115 * 1.0796
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0868+4.679 * -0.1589-0.327 * 1.0568
=-3.03

* 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 $7,587 Mil.
Revenue was 18043.529789311 + 17272.367883284 + 15791.675826453 + 14958.731647487 = $66,066 Mil.
Gross Profit was 10656.658435491 + 9609.2393242659 + 8316.0648837218 + 7674.5427654125 = $36,257 Mil.
Total Current Assets was $64,381 Mil.
Total Assets was $146,808 Mil.
Property, Plant and Equipment(Net PPE) was $77,108 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,582 Mil.
Selling, General, & Admin. Expense(SGA) was $1,858 Mil.
Total Current Liabilities was $28,553 Mil.
Long-Term Debt & Capital Lease Obligation was $26,339 Mil.
Net Income was 8006.8951690544 + 7130.6262815981 + 5990.7525199924 + 5636.8457126366 = $26,765 Mil.
Non Operating Income was 109.20612507558 + 123.4014976452 + 99.430231259077 + 101.90830056636 = $434 Mil.
Cash Flow from Operations was 11446.494397508 + 13090.139670012 + 13629.762037761 + 11496.915695682 = $49,663 Mil.
Total Receivables was $6,478 Mil.
Revenue was 13396.152699784 + 12820.37582734 + 12819.000882888 + 12208.028537081 = $51,244 Mil.
Gross Profit was 6702.5492440605 + 6715.6295214074 + 6922.5505178545 + 6524.3978340315 = $26,865 Mil.
Total Current Assets was $44,676 Mil.
Total Assets was $111,328 Mil.
Property, Plant and Equipment(Net PPE) was $63,186 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,010 Mil.
Selling, General, & Admin. Expense(SGA) was $1,326 Mil.
Total Current Liabilities was $23,742 Mil.
Long-Term Debt & Capital Lease Obligation was $15,647 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)
=(7586.6653267079 / 66066.305146535) / (6478.4593232541 / 51243.557947093)
=0.11483411 / 0.12642485
=0.9083

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)
=(26865.127117354 / 51243.557947093) / (36256.505408891 / 66066.305146535)
=0.5242635 / 0.54878966
=0.9553

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 - (64381.07063835 + 77107.726574086) / 146807.95918643) / (1 - (44676.169906407 + 63185.687544996) / 111327.89056875)
=0.03623211 / 0.03113356
=1.1638

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
=66066.305146535 / 51243.557947093
=1.2893

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))
=(14009.963528838 / (14009.963528838 + 63185.687544996)) / (15581.512494669 / (15581.512494669 + 77107.726574086))
=0.18148644 / 0.16810487
=1.0796

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)
=(1858.1352789738 / 66066.305146535) / (1326.1394839948 / 51243.557947093)
=0.02812531 / 0.02587915
=1.0868

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)
=((26339.277841022 + 28552.641160157) / 146807.95918643) / ((15646.745860331 + 23742.199424046) / 111327.89056875)
=0.37390288 / 0.35381022
=1.0568

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
=(26765.119683281 - 433.94615454622 - 49663.311800963) / 146807.95918643
=-0.1589

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.

Taiwan Semiconductor Manufacturing Co has a M-score of -3.03 suggests that the company is unlikely to be a manipulator.


Taiwan Semiconductor Manufacturing Co Beneish M-Score Related Terms

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Taiwan Semiconductor Manufacturing Co Business Description

Taiwan Semiconductor Manufacturing Co logo
Address
No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world's largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

Taiwan Semiconductor Manufacturing Co Headlines

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