Chieftek Precision Co (TPE:1597) Beneish M-Score : -2.40 (As of May. 21, 2024)

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What is Chieftek Precision 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:1597' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37 Med: -2.75 Max: -1.94
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Chieftek Precision Co was -1.94. The lowest was -3.37. And the median was -2.75.

Chieftek Precision Co Beneish M-Score Historical Data

The historical data trend for Chieftek Precision 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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Chieftek Precision Co Beneish M-Score Chart

Chieftek Precision Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.75

-2.59

-2.75

-2.96

-2.54

Chieftek Precision Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.74	-2.66	-2.79	-2.54	-2.40

Competitive Comparison of Chieftek Precision Co's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Chieftek Precision 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.

Chieftek Precision Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Chieftek Precision Co's Beneish M-Score distribution charts can be found below:

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

Chieftek Precision 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 Chieftek Precision 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 * 1.4227

0.528 * 1.0226

0.404 * 0.9545

0.892 * 0.6592

0.115 * 1.147

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5869

4.679 * 0.014243

0.327 * 0.9329

-2.40

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$270 Mil.
Revenue was 254.039 + 236.357 + 245.156 + 285.978 = NT$1,022 Mil.
Gross Profit was 100.857 + 100.353 + 103.837 + 133.271 = NT$438 Mil.
Total Current Assets was NT$1,819 Mil.
Total Assets was NT$4,001 Mil.
Property, Plant and Equipment(Net PPE) was NT$2,071 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$76 Mil.
Selling, General, & Admin. Expense(SGA) was NT$268 Mil.
Total Current Liabilities was NT$633 Mil.
Long-Term Debt & Capital Lease Obligation was NT$1,006 Mil.
Net Income was 35.803 + -8.34 + 25.204 + 44.031 = NT$97 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 36.518 + -38.463 + 36.881 + 4.779 = NT$40 Mil.

Total Receivables was NT$288 Mil.
Revenue was 307.263 + 369.398 + 421.305 + 451.641 = NT$1,550 Mil.
Gross Profit was 131.186 + 168.832 + 179.616 + 200.295 = NT$680 Mil.
Total Current Assets was NT$2,025 Mil.
Total Assets was NT$4,141 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,996 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$84 Mil.
Selling, General, & Admin. Expense(SGA) was NT$256 Mil.
Total Current Liabilities was NT$1,048 Mil.
Long-Term Debt & Capital Lease Obligation was NT$771 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)
	=	(270.086 / 1021.53)	/	(287.976 / 1549.607)
	=	0.264394	/	0.185838
	=	1.4227

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)
	=	(679.929 / 1549.607)	/	(438.318 / 1021.53)
	=	0.438775	/	0.42908
	=	1.0226

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 - (1818.871 + 2070.87) / 4000.655)	/	(1 - (2025.251 + 1995.608) / 4141.147)
	=	0.027724	/	0.029047
	=	0.9545

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
	=	1021.53	/	1549.607
	=	0.6592

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))
	=	(84.088 / (84.088 + 1995.608))	/	(75.668 / (75.668 + 2070.87))
	=	0.040433	/	0.035251
	=	1.147

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)
	=	(268.143 / 1021.53)	/	(256.317 / 1549.607)
	=	0.262492	/	0.165408
	=	1.5869

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)
	=	((1005.613 + 633.373) / 4000.655)	/	((771 + 1047.621) / 4141.147)
	=	0.409679	/	0.439159
	=	0.9329

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
	=	(96.698 - 0	-	39.715)	/	4000.655
	=	0.014243

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.

Chieftek Precision Co has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Chieftek Precision Co Beneish M-Score Related Terms

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Chieftek Precision Co (TPE:1597) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Chieftek Precision Co Ltd (TPE:1597) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Number 3, Dali 1st Road, Sourthern taiwan Science Park, Xinshi District, Tainan, TWN, 741-45

Website

http://www.chieftek.com

Chieftek Precision Co Ltd engages in the manufacture and sale of the ball and roller bearings The Company engages in the research, development, manufacture and sales of miniature linear guides, miniature ball screws, miniature linear modules, electro-optics equipment and semiconductor process equipment. It involves in manufacture of miniature linear motion components. Its products include Standard 4-Row Ball Bearing Linear Guide, Wide 4-Row Ball Bearing Linear Guide, Miniature Linear Guide, ST Miniature Stroke Slide Series, and Ironless Linear Motor. Its products are applied in the industries requiring precise positioning applications, such as precision machinery, automation equipment, various power transmission applications, semiconductor manufacturing equipment, and medical equipment.

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