CMC Magnetics (TPE:2323) Beneish M-Score : -2.38 (As of May. 21, 2024)

View and export this data going back to 1992. Start your Free Trial

What is CMC Magnetics 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:2323' s Beneish M-Score Range Over the Past 10 Years
Min: -4.67 Med: -2.69 Max: -1
Current: -2.38

During the past 13 years, the highest Beneish M-Score of CMC Magnetics was -1.00. The lowest was -4.67. And the median was -2.69.

CMC Magnetics Beneish M-Score Historical Data

The historical data trend for CMC Magnetics'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.

CMC Magnetics Beneish M-Score Chart

CMC Magnetics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.93

-2.71

-2.35

-2.74

-2.40

CMC Magnetics 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															-2.66	-2.05	-2.57	-2.40	-2.38

Competitive Comparison of CMC Magnetics's Beneish M-Score

For the Computer Hardware subindustry, CMC Magnetics'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.

CMC Magnetics's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, CMC Magnetics's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CMC Magnetics's Beneish M-Score falls into.

CMC Magnetics 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 CMC Magnetics 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 * 1.0008

0.528 * 0.8544

0.404 * 1.0555

0.892 * 1.0153

0.115 * 1.0113

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9658

4.679 * 0.029672

0.327 * 1.0092

-2.38

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$1,631 Mil.
Revenue was 1839.877 + 1912.073 + 1967.617 + 1772.843 = NT$7,492 Mil.
Gross Profit was 411.443 + 459.906 + 443.236 + 406.67 = NT$1,721 Mil.
Total Current Assets was NT$14,518 Mil.
Total Assets was NT$25,359 Mil.
Property, Plant and Equipment(Net PPE) was NT$3,733 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$514 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,660 Mil.
Total Current Liabilities was NT$3,531 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2,926 Mil.
Net Income was -269.496 + 744.558 + -1060.827 + 1386.368 = NT$801 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -624.989 + -289.392 + 391.856 + 570.68 = NT$48 Mil.

Total Receivables was NT$1,605 Mil.
Revenue was 1731.914 + 1870.87 + 1902.609 + 1873.777 = NT$7,379 Mil.
Gross Profit was 350.406 + 302.862 + 437.841 + 357.32 = NT$1,448 Mil.
Total Current Assets was NT$12,905 Mil.
Total Assets was NT$23,718 Mil.
Property, Plant and Equipment(Net PPE) was NT$4,515 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$630 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,693 Mil.
Total Current Liabilities was NT$3,801 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2,184 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)
	=	(1630.508 / 7492.41)	/	(1604.526 / 7379.17)
	=	0.217621	/	0.21744
	=	1.0008

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)
	=	(1448.429 / 7379.17)	/	(1721.255 / 7492.41)
	=	0.196286	/	0.229733
	=	0.8544

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 - (14517.903 + 3733.48) / 25359.23)	/	(1 - (12905.491 + 4514.611) / 23718.275)
	=	0.280286	/	0.265541
	=	1.0555

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
	=	7492.41	/	7379.17
	=	1.0153

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))
	=	(629.718 / (629.718 + 4514.611))	/	(514.166 / (514.166 + 3733.48))
	=	0.12241	/	0.121047
	=	1.0113

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)
	=	(1660.392 / 7492.41)	/	(1693.267 / 7379.17)
	=	0.22161	/	0.229466
	=	0.9658

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)
	=	((2926.229 + 3531.408) / 25359.23)	/	((2183.532 + 3801.307) / 23718.275)
	=	0.254646	/	0.25233
	=	1.0092

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
	=	(800.603 - 0	-	48.155)	/	25359.23
	=	0.029672

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.

CMC Magnetics has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.

CMC Magnetics Beneish M-Score Related Terms

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

CMC Magnetics (TPE:2323) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » CMC Magnetics Corp (TPE:2323) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

53, Ming Chuan West Road, 15th Floor, Taipei, TWN

Website

https://www.cmcnet.com.tw

CMC Magnetics Corp is engaged in the manufacturing and sale of consumer electronic products, including optical discs, and the acquisition of film agency rights, and production and distribution of digital discs and Blu-ray discs for sales and rental business. CMC provides optical storage devices like compact discs and digital video discs with additional functionalities that allow a user to record or rewrite data. The company also offers to package for optical storage products, USB storage, alkaline batteries, and flash storage products. Its products include Compact Disc Recordable, Compact Disc Rewritable, Digital Video Disc-Recordable, videotapes, and others. The firm has manufacturing facilities in Taiwan, China, and Hong Kong, and generates revenue from the Americas, Europe, and Asia.

CMC Magnetics (TPE:2323) Headlines

No Headlines