Formosa Taffeta Co (TPE:1434) Beneish M-Score : -2.80 (As of Apr. 29, 2024)

View and export this data going back to 1985. Start your Free Trial

What is Formosa Taffeta 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 -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:1434' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97 Med: -2.6 Max: -2.12
Current: -2.8

During the past 13 years, the highest Beneish M-Score of Formosa Taffeta Co was -2.12. The lowest was -2.97. And the median was -2.60.

Formosa Taffeta Co Beneish M-Score Historical Data

The historical data trend for Formosa Taffeta 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.

Formosa Taffeta Co Beneish M-Score Chart

Formosa Taffeta Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.97

-2.57

-2.48

-2.62

-2.80

Formosa Taffeta 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															-2.62	-2.84	-3.10	-2.94	-2.80

Competitive Comparison of Formosa Taffeta Co's Beneish M-Score

For the Textile Manufacturing subindustry, Formosa Taffeta 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.

Formosa Taffeta Co's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Formosa Taffeta Co's Beneish M-Score distribution charts can be found below:

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

Formosa Taffeta 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 Formosa Taffeta 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 * 0.926

0.528 * 1.2225

0.404 * 1.0675

0.892 * 0.8208

0.115 * 0.9559

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1065

4.679 * -0.050906

0.327 * 0.9332

-2.80

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was NT$2,517 Mil.
Revenue was 6476.372 + 7143.501 + 7228.933 + 7652.703 = NT$28,502 Mil.
Gross Profit was 558.905 + 611.115 + 557.896 + 802.522 = NT$2,530 Mil.
Total Current Assets was NT$16,479 Mil.
Total Assets was NT$71,665 Mil.
Property, Plant and Equipment(Net PPE) was NT$12,005 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,377 Mil.
Selling, General, & Admin. Expense(SGA) was NT$2,270 Mil.
Total Current Liabilities was NT$5,676 Mil.
Long-Term Debt & Capital Lease Obligation was NT$11,161 Mil.
Net Income was -153.302 + 50.11 + 466.143 + 81.603 = NT$445 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 428.6 + 1851.662 + 1247.779 + 564.665 = NT$4,093 Mil.

Total Receivables was NT$3,312 Mil.
Revenue was 7777.371 + 8749.831 + 9281.671 + 8913.782 = NT$34,723 Mil.
Gross Profit was 894.869 + 866.877 + 981.708 + 1025.297 = NT$3,769 Mil.
Total Current Assets was NT$20,210 Mil.
Total Assets was NT$75,410 Mil.
Property, Plant and Equipment(Net PPE) was NT$12,638 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,379 Mil.
Selling, General, & Admin. Expense(SGA) was NT$2,499 Mil.
Total Current Liabilities was NT$8,634 Mil.
Long-Term Debt & Capital Lease Obligation was NT$10,353 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)
	=	(2517.044 / 28501.509)	/	(3311.632 / 34722.655)
	=	0.088313	/	0.095374
	=	0.926

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)
	=	(3768.751 / 34722.655)	/	(2530.438 / 28501.509)
	=	0.108539	/	0.088783
	=	1.2225

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 - (16479.42 + 12005.286) / 71664.782)	/	(1 - (20209.605 + 12638.352) / 75409.835)
	=	0.602529	/	0.564408
	=	1.0675

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
	=	28501.509	/	34722.655
	=	0.8208

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))
	=	(1378.658 / (1378.658 + 12638.352))	/	(1376.878 / (1376.878 + 12005.286))
	=	0.098356	/	0.102889
	=	0.9559

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)
	=	(2269.729 / 28501.509)	/	(2498.926 / 34722.655)
	=	0.079635	/	0.071968
	=	1.1065

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)
	=	((11161.491 + 5675.993) / 71664.782)	/	((10352.771 + 8633.765) / 75409.835)
	=	0.234948	/	0.251778
	=	0.9332

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
	=	(444.554 - 0	-	4092.706)	/	71664.782
	=	-0.050906

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.

Formosa Taffeta Co has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.

Formosa Taffeta Co Beneish M-Score Related Terms

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

Formosa Taffeta Co (TPE:1434) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Formosa Taffeta Co Ltd (TPE:1434) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

317, Shuliou RD, Touliou, TWN, 640

Website

http://www.ftc.com.tw

Formosa Taffeta Co Ltd is a Taiwan-based company that is principally involved in the textile industry. The company's business segments include first business segment, which is primarily involved in production and sale of woven, dyeing & finishing products, and management of overseas subsidiaries' plants; the cord fabric segment, which primarily produces and offers tire cords; the gasoline segment, which offers gasoline and car washing, and Other segment. The first business segment and the cord fabric segment jointly contribute more than half of the company's total revenue.

Formosa Taffeta Co (TPE:1434) Headlines

No Headlines