Longchen Paper & Packaging Co (TPE:1909) Beneish M-Score : -2.85 (As of Apr. 07, 2025)

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What is Longchen Paper & Packaging 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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Longchen Paper & Packaging Co's Beneish M-Score or its related term are showing as below:

TPE:1909' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.67 Max: -1.56
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Longchen Paper & Packaging Co was -1.56. The lowest was -3.07. And the median was -2.67.

Longchen Paper & Packaging Co Beneish M-Score Historical Data

The historical data trend for Longchen Paper & Packaging 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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Longchen Paper & Packaging Co Beneish M-Score Chart

Longchen Paper & Packaging Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.48

-2.47

-2.55

-2.96

-2.85

Longchen Paper & Packaging 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															-2.96	-3.21	-3.10	-3.18	-2.85

Competitive Comparison of Longchen Paper & Packaging Co's Beneish M-Score

For the Paper & Paper Products subindustry, Longchen Paper & Packaging 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.

Longchen Paper & Packaging Co's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Longchen Paper & Packaging Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Longchen Paper & Packaging Co's Beneish M-Score falls into.

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Longchen Paper & Packaging 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 Longchen Paper & Packaging 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 * 0.8852

0.528 * 0.9976

0.404 * 0.8142

0.892 * 1.0233

0.115 * 0.9654

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9986

4.679 * -0.042816

0.327 * 1.0048

-2.85

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was NT$7,233 Mil.
Revenue was 12709.78 + 11751.068 + 12602.917 + 10735.969 = NT$47,800 Mil.
Gross Profit was 1047.233 + 1055.262 + 1408.762 + 1153.604 = NT$4,665 Mil.
Total Current Assets was NT$12,195 Mil.
Total Assets was NT$68,530 Mil.
Property, Plant and Equipment(Net PPE) was NT$51,041 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,125 Mil.
Selling, General, & Admin. Expense(SGA) was NT$3,101 Mil.
Total Current Liabilities was NT$20,299 Mil.
Long-Term Debt & Capital Lease Obligation was NT$26,380 Mil.
Net Income was -244.479 + -263.318 + 127.792 + 6.452 = NT$-374 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 696.44 + 390.635 + 351.784 + 1121.73 = NT$2,561 Mil.

Total Receivables was NT$7,985 Mil.
Revenue was 12308.12 + 11632.885 + 11948.639 + 10822.385 = NT$46,712 Mil.
Gross Profit was 1577.809 + 1247.251 + 1025.428 + 697.397 = NT$4,548 Mil.
Total Current Assets was NT$13,519 Mil.
Total Assets was NT$70,126 Mil.
Property, Plant and Equipment(Net PPE) was NT$49,953 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,005 Mil.
Selling, General, & Admin. Expense(SGA) was NT$3,035 Mil.
Total Current Liabilities was NT$18,782 Mil.
Long-Term Debt & Capital Lease Obligation was NT$28,756 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)
	=	(7232.863 / 47799.734)	/	(7984.872 / 46712.029)
	=	0.151316	/	0.170938
	=	0.8852

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)
	=	(4547.885 / 46712.029)	/	(4664.861 / 47799.734)
	=	0.09736	/	0.097592
	=	0.9976

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 - (12194.5 + 51041.201) / 68529.679)	/	(1 - (13519.254 + 49952.989) / 70126.008)
	=	0.077251	/	0.094883
	=	0.8142

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
	=	47799.734	/	46712.029
	=	1.0233

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))
	=	(2005.079 / (2005.079 + 49952.989))	/	(2125.103 / (2125.103 + 51041.201))
	=	0.03859	/	0.039971
	=	0.9654

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)
	=	(3100.849 / 47799.734)	/	(3034.584 / 46712.029)
	=	0.064872	/	0.064964
	=	0.9986

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)
	=	((26380.103 + 20298.971) / 68529.679)	/	((28755.868 + 18781.841) / 70126.008)
	=	0.681151	/	0.67789
	=	1.0048

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
	=	(-373.553 - 0	-	2560.589)	/	68529.679
	=	-0.042816

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.

Longchen Paper & Packaging Co has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.

Longchen Paper & Packaging Co Beneish M-Score Related Terms

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Longchen Paper & Packaging Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Longchen Paper & Packaging Co Ltd (TPE:1909) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1-1, Guangxing Lane, Guangxing Village, Erlin Township, Zhanghua, TWN

Website

https://www.longchenpaper.com

Longchen Paper & Packaging Co Ltd manufactures and sells paper and electronics products. The company's paper products include printing and writing paper, industrial paper, craft and corrugated paperboards, and corrugated paper boxes. The firm's customers include consumer electronics manufacturers and food and beverage manufacturers. The company also generates and sells electricity from waste incineration and operates a wastewater treatment business. The majority of Long Chen Paper's revenue is generated in China and Taiwan.

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