eMemory Technology (ROCO:3529) Beneish M-Score : -3.12 (As of Dec. 13, 2024)

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What is eMemory Technology 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 -3.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ROCO:3529' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12 Med: -2.47 Max: -1.71
Current: -3.12

During the past 13 years, the highest Beneish M-Score of eMemory Technology was -1.71. The lowest was -3.12. And the median was -2.47.

eMemory Technology Beneish M-Score Historical Data

The historical data trend for eMemory Technology'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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eMemory Technology Beneish M-Score Chart

eMemory Technology Annual Data

Trend

Dec14

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Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.74

-3.11

-2.98

-1.71

-2.68

eMemory Technology Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-1.79	-2.68	-1.93	-2.58	-3.12

Competitive Comparison of eMemory Technology's Beneish M-Score

For the Semiconductors subindustry, eMemory Technology'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.

eMemory Technology's Beneish M-Score Distribution in the Semiconductors Industry

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

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

eMemory Technology 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 eMemory Technology 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 * 0.6737

0.528 * 1

0.404 * 0.8975

0.892 * 1.144

0.115 * 1.1218

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9361

4.679 * -0.096355

0.327 * 1.0063

-3.12

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was NT$285 Mil.
Revenue was 899.477 + 893.01 + 802.764 + 898.858 = NT$3,494 Mil.
Gross Profit was 899.477 + 893.01 + 802.764 + 898.858 = NT$3,494 Mil.
Total Current Assets was NT$2,972 Mil.
Total Assets was NT$3,800 Mil.
Property, Plant and Equipment(Net PPE) was NT$709 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$145 Mil.
Selling, General, & Admin. Expense(SGA) was NT$568 Mil.
Total Current Liabilities was NT$722 Mil.
Long-Term Debt & Capital Lease Obligation was NT$4 Mil.
Net Income was 413.969 + 475.096 + 430.577 + 403.753 = NT$1,723 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 260.909 + 637.492 + 439.679 + 751.458 = NT$2,090 Mil.

Total Receivables was NT$369 Mil.
Revenue was 787.091 + 696.625 + 667.751 + 902.704 = NT$3,054 Mil.
Gross Profit was 787.091 + 696.625 + 667.751 + 902.704 = NT$3,054 Mil.
Total Current Assets was NT$2,706 Mil.
Total Assets was NT$3,293 Mil.
Property, Plant and Equipment(Net PPE) was NT$472 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$111 Mil.
Selling, General, & Admin. Expense(SGA) was NT$531 Mil.
Total Current Liabilities was NT$623 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2 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)
	=	(284.746 / 3494.109)	/	(369.425 / 3054.171)
	=	0.081493	/	0.120958
	=	0.6737

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)
	=	(3054.171 / 3054.171)	/	(3494.109 / 3494.109)
	=	1	/	1
	=	1

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 - (2972.171 + 709.05) / 3799.939)	/	(1 - (2706.061 + 472.313) / 3293.007)
	=	0.031242	/	0.034811
	=	0.8975

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
	=	3494.109	/	3054.171
	=	1.144

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))
	=	(111.467 / (111.467 + 472.313))	/	(145.448 / (145.448 + 709.05))
	=	0.19094	/	0.170215
	=	1.1218

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)
	=	(568.437 / 3494.109)	/	(530.767 / 3054.171)
	=	0.162684	/	0.173784
	=	0.9361

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)
	=	((3.838 + 721.713) / 3799.939)	/	((1.743 + 623.057) / 3293.007)
	=	0.190938	/	0.189735
	=	1.0063

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
	=	(1723.395 - 0	-	2089.538)	/	3799.939
	=	-0.096355

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.

eMemory Technology has a M-score of -3.12 suggests that the company is unlikely to be a manipulator.

eMemory Technology Beneish M-Score Related Terms

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eMemory Technology Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » eMemory Technology Inc (ROCO:3529) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

8th Floor, No. 5, Tai-Yuan 1st Street, Hsinchu, Jhubei, TWN, 302082

Website

https://www.ememory.com.tw

eMemory Technology Inc provides and develops embedded flash memory products. It licenses its intellectual property (IP) to semiconductor foundries, integrated devices manufacturers and design houses. Its products are NeoBit, NeoFuse, NeoMTP, NeoPUF, and NeoEE. The company earns revenue in the form of Royalty and Income generated from the Technical Service provided, out of which the majority comes from the Royalties. The company operates in Taiwan, China, Singapore, Korea, the United States of America and other countries. Taiwan contributes to the majority of the revenue.

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