Lan FA Textile Co (TPE:1459) Beneish M-Score : -1.90 (As of Apr. 06, 2025)

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What is Lan FA Textile 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 -1.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:1459' s Beneish M-Score Range Over the Past 10 Years
Min: -4.01 Med: -2.44 Max: 0.2
Current: -1.9

During the past 13 years, the highest Beneish M-Score of Lan FA Textile Co was 0.20. The lowest was -4.01. And the median was -2.44.

Lan FA Textile Co Beneish M-Score Historical Data

The historical data trend for Lan FA Textile 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.

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Lan FA Textile Co Beneish M-Score Chart

Lan FA Textile Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.82

-3.23

-2.26

-2.61

-1.90

Lan FA Textile Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.61	1.64	-2.75	-1.61	-1.90

Competitive Comparison of Lan FA Textile Co's Beneish M-Score

For the Textile Manufacturing subindustry, Lan FA Textile 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.

Lan FA Textile Co's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Lan FA Textile Co's Beneish M-Score falls into.

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Lan FA Textile 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 Lan FA Textile 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 * 0.642

0.528 * 2.2507

0.404 * 0.853

0.892 * 1.0921

0.115 * 1.0371

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.03

4.679 * 0.040784

0.327 * 0.8912

-1.90

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was NT$103 Mil.
Revenue was 349.298 + 283.2 + 309.71 + 372.385 = NT$1,315 Mil.
Gross Profit was -10.047 + -24.18 + -18.07 + -23.779 = NT$-76 Mil.
Total Current Assets was NT$1,874 Mil.
Total Assets was NT$4,860 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,929 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$136 Mil.
Selling, General, & Admin. Expense(SGA) was NT$130 Mil.
Total Current Liabilities was NT$1,263 Mil.
Long-Term Debt & Capital Lease Obligation was NT$401 Mil.
Net Income was 37.298 + 59.137 + 114.548 + 3.734 = NT$215 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 5.193 + -2.447 + 36.402 + -22.62 = NT$17 Mil.

Total Receivables was NT$147 Mil.
Revenue was 438.502 + 274.031 + 226.074 + 265.156 = NT$1,204 Mil.
Gross Profit was -16.961 + -53.32 + -41.544 + -44.963 = NT$-157 Mil.
Total Current Assets was NT$1,402 Mil.
Total Assets was NT$4,590 Mil.
Property, Plant and Equipment(Net PPE) was NT$2,018 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$148 Mil.
Selling, General, & Admin. Expense(SGA) was NT$116 Mil.
Total Current Liabilities was NT$1,212 Mil.
Long-Term Debt & Capital Lease Obligation was NT$551 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)
	=	(103.001 / 1314.593)	/	(146.917 / 1203.763)
	=	0.078352	/	0.122048
	=	0.642

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)
	=	(-156.788 / 1203.763)	/	(-76.076 / 1314.593)
	=	-0.130248	/	-0.05787
	=	2.2507

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 - (1873.79 + 1929.086) / 4859.527)	/	(1 - (1401.693 + 2018.35) / 4590.079)
	=	0.217439	/	0.254905
	=	0.853

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
	=	1314.593	/	1203.763
	=	1.0921

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))
	=	(147.831 / (147.831 + 2018.35))	/	(135.885 / (135.885 + 1929.086))
	=	0.068245	/	0.065805
	=	1.0371

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)
	=	(130.187 / 1314.593)	/	(115.733 / 1203.763)
	=	0.099032	/	0.096143
	=	1.03

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)
	=	((400.836 + 1262.518) / 4859.527)	/	((550.817 + 1212.056) / 4590.079)
	=	0.342287	/	0.384062
	=	0.8912

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
	=	(214.717 - 0	-	16.528)	/	4859.527
	=	0.040784

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.

Lan FA Textile Co has a M-score of -1.90 suggests that the company is unlikely to be a manipulator.

Lan FA Textile Co Beneish M-Score Related Terms

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Lan FA Textile Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Lan FA Textile Co Ltd (TPE:1459) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sec. 1, Huanhe North Road, 5th Floor.-5, No. 73, Taipei City, TWN, 103

Website

http://www.lanfa.com.tw

Lan FA Textile Co Ltd operates in the textile manufacturing industry engaged in the production and sale of knitted fabrics and has increased the production and sale business of flexible polyester textured yarn, the production and sale of polyester textured yarn is the main source of operating revenue. Its products include Unclassified fiber, Superfine fiber, Compounded fiber and Functional fiber.

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