Cheng Shin Rubber Industry Co (TPE:2105) Beneish M-Score : -2.61 (As of Jun. 25, 2024)

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What is Cheng Shin Rubber Industry 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Cheng Shin Rubber Industry Co's Beneish M-Score or its related term are showing as below:

TPE:2105' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.68 Max: -1.89
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Cheng Shin Rubber Industry Co was -1.89. The lowest was -3.21. And the median was -2.68.

Cheng Shin Rubber Industry Co Beneish M-Score Historical Data

The historical data trend for Cheng Shin Rubber Industry 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.

Cheng Shin Rubber Industry Co Beneish M-Score Chart

Cheng Shin Rubber Industry Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.68

-3.09

-2.75

-2.62

-2.42

Cheng Shin Rubber Industry Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.42	-1.89	-2.08	-2.68	-2.61

Competitive Comparison of Cheng Shin Rubber Industry Co's Beneish M-Score

For the Auto Parts subindustry, Cheng Shin Rubber Industry 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.

Cheng Shin Rubber Industry Co's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Cheng Shin Rubber Industry Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cheng Shin Rubber Industry Co's Beneish M-Score falls into.

Cheng Shin Rubber Industry 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 Cheng Shin Rubber Industry 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 * 1.1347

0.528 * 0.8846

0.404 * 1.5069

0.892 * 0.9846

0.115 * 0.9075

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9691

4.679 * -0.082512

0.327 * 0.9776

-2.61

This Year (Mar24) TTM:

Last Year (Dec22) TTM:

Total Receivables was NT$14,579 Mil.
Revenue was 23622.354 + 25332.601 + 24623.334 + 23528.645 = NT$97,107 Mil.
Gross Profit was 5948.719 + 6452.961 + 5928.61 + 5024.677 = NT$23,355 Mil.
Total Current Assets was NT$59,040 Mil.
Total Assets was NT$142,136 Mil.
Property, Plant and Equipment(Net PPE) was NT$70,749 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$10,550 Mil.
Selling, General, & Admin. Expense(SGA) was NT$9,226 Mil.
Total Current Liabilities was NT$26,453 Mil.
Long-Term Debt & Capital Lease Obligation was NT$28,811 Mil.
Net Income was 2219.808 + 1971.617 + 2077.569 + 1583.293 = NT$7,852 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 4152.632 + 7764.337 + 3728.923 + 3934.367 = NT$19,580 Mil.

Total Receivables was NT$13,049 Mil.
Revenue was 22960.084 + 26826.804 + 24058.036 + 24777.953 = NT$98,623 Mil.
Gross Profit was 5007.304 + 5593.099 + 5226.013 + 5156.751 = NT$20,983 Mil.
Total Current Assets was NT$57,152 Mil.
Total Assets was NT$145,884 Mil.
Property, Plant and Equipment(Net PPE) was NT$80,322 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$10,722 Mil.
Selling, General, & Admin. Expense(SGA) was NT$9,668 Mil.
Total Current Liabilities was NT$28,971 Mil.
Long-Term Debt & Capital Lease Obligation was NT$29,048 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)
	=	(14578.556 / 97106.934)	/	(13048.576 / 98622.877)
	=	0.150129	/	0.132308
	=	1.1347

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)
	=	(20983.167 / 98622.877)	/	(23354.967 / 97106.934)
	=	0.212762	/	0.240508
	=	0.8846

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 - (59040.371 + 70749.153) / 142136.133)	/	(1 - (57151.862 + 80322.109) / 145883.619)
	=	0.086865	/	0.057646
	=	1.5069

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
	=	97106.934	/	98622.877
	=	0.9846

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))
	=	(10721.914 / (10721.914 + 80322.109))	/	(10550.358 / (10550.358 + 70749.153))
	=	0.117766	/	0.129771
	=	0.9075

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)
	=	(9225.765 / 97106.934)	/	(9668.302 / 98622.877)
	=	0.095006	/	0.098033
	=	0.9691

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)
	=	((28810.83 + 26452.662) / 142136.133)	/	((29047.93 + 28970.953) / 145883.619)
	=	0.388807	/	0.397707
	=	0.9776

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
	=	(7852.287 - 0	-	19580.259)	/	142136.133
	=	-0.082512

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.

Cheng Shin Rubber Industry Co has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

Cheng Shin Rubber Industry Co Beneish M-Score Related Terms

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Cheng Shin Rubber Industry Co (TPE:2105) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Cheng Shin Rubber Industry Co Ltd (TPE:2105) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 215, Meigang Road, Dacun Township, Changhua, TWN, 51545

Website

https://www.cst.com.tw

Cheng Shin Rubber Industry Co Ltd makes and sells rubber tires under the CST brand name. The company also sells rubber inner tubes and other rubber products. It includes the Processing, manufacturing, and trading of bicycle tires, electrical vehicle tires, reclaimed rubber, various rubbers, resin, and other rubber products and the manufacturing and trading of various rubber products and relevant rubber machinery. The main sources of sales revenue are from the assembly plants and dealers. Its geographical segments are Taiwan, China, the United States, and Others.

Cheng Shin Rubber Industry Co (TPE:2105) Headlines

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