New Asia Construction & Development (TPE:2516) Beneish M-Score : -4.13 (As of May. 20, 2024)

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What is New Asia Construction & Development 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 -4.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for New Asia Construction & Development's Beneish M-Score or its related term are showing as below:

TPE:2516' s Beneish M-Score Range Over the Past 10 Years
Min: -43.19 Med: -3.13 Max: -1.25
Current: -4.13

During the past 13 years, the highest Beneish M-Score of New Asia Construction & Development was -1.25. The lowest was -43.19. And the median was -3.13.

New Asia Construction & Development Beneish M-Score Historical Data

The historical data trend for New Asia Construction & Development'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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New Asia Construction & Development Beneish M-Score Chart

New Asia Construction & Development Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.90

-3.54

-4.42

-3.16

-4.62

New Asia Construction & Development 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															-3.36	-2.98	-2.76	-4.62	-4.13

Competitive Comparison of New Asia Construction & Development's Beneish M-Score

For the Engineering & Construction subindustry, New Asia Construction & Development'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.

New Asia Construction & Development's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, New Asia Construction & Development's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where New Asia Construction & Development's Beneish M-Score falls into.

New Asia Construction & Development 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 New Asia Construction & Development 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 * 0.867

0.528 * -2.214

0.404 * 0.9875

0.892 * 1.1757

0.115 * 0.8955

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.004026

0.327 * 0.9647

-4.13

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$2,610 Mil.
Revenue was 1976.338 + 2485.506 + 2313.045 + 1867.715 = NT$8,643 Mil.
Gross Profit was 75.794 + 56.648 + 103.795 + 78.235 = NT$314 Mil.
Total Current Assets was NT$4,666 Mil.
Total Assets was NT$6,328 Mil.
Property, Plant and Equipment(Net PPE) was NT$692 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$59 Mil.
Selling, General, & Admin. Expense(SGA) was NT$0 Mil.
Total Current Liabilities was NT$4,609 Mil.
Long-Term Debt & Capital Lease Obligation was NT$23 Mil.
Net Income was 49.93 + -8.34 + 71.152 + 51.019 = NT$164 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -676.374 + 552.369 + -7.184 + 269.473 = NT$138 Mil.

Total Receivables was NT$2,561 Mil.
Revenue was 1963.328 + 2060.136 + 1513.282 + 1814.515 = NT$7,351 Mil.
Gross Profit was 72.842 + -395.244 + 33.355 + -303.152 = NT$-592 Mil.
Total Current Assets was NT$4,633 Mil.
Total Assets was NT$6,318 Mil.
Property, Plant and Equipment(Net PPE) was NT$705 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$53 Mil.
Selling, General, & Admin. Expense(SGA) was NT$0 Mil.
Total Current Liabilities was NT$4,769 Mil.
Long-Term Debt & Capital Lease Obligation was NT$25 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)
	=	(2610.222 / 8642.604)	/	(2560.735 / 7351.261)
	=	0.302018	/	0.34834
	=	0.867

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)
	=	(-592.199 / 7351.261)	/	(314.472 / 8642.604)
	=	-0.080557	/	0.036386
	=	-2.214

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 - (4666.079 + 691.576) / 6327.749)	/	(1 - (4632.687 + 704.762) / 6318.383)
	=	0.153308	/	0.155251
	=	0.9875

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
	=	8642.604	/	7351.261
	=	1.1757

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))
	=	(53.388 / (53.388 + 704.762))	/	(59.026 / (59.026 + 691.576))
	=	0.070419	/	0.078638
	=	0.8955

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)
	=	(0 / 8642.604)	/	(0 / 7351.261)
	=	0	/	0
	=	1

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)
	=	((23.05 + 4609.145) / 6327.749)	/	((25.245 + 4769.476) / 6318.383)
	=	0.732045	/	0.758853
	=	0.9647

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
	=	(163.761 - 0	-	138.284)	/	6327.749
	=	0.004026

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.

New Asia Construction & Development has a M-score of -4.13 suggests that the company is unlikely to be a manipulator.

New Asia Construction & Development Beneish M-Score Related Terms

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New Asia Construction & Development (TPE:2516) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » New Asia Construction & Development Corp (TPE:2516) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

N0. 760, Section 4, Bade Road,, 15,16th floor,, Songshan District, Taipei, TWN

Website

http://www.newasia.com.tw

New Asia Construction & Development Corp operates in the engineering and construction industry. The company is engaged in the construction of heavy equipment needed for civil engineering, development business related to land and community, construction, leasing, or selling of heavy equipment and public housing, and office buildings and repairs. The company is also engaged in manufacturing and selling ready mixed concrete and asphalt concrete and investment.

New Asia Construction & Development (TPE:2516) Headlines

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