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Ambassador Hotel (TPE:2704) Beneish M-Score : -2.79 (As of Mar. 27, 2025)


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What is Ambassador Hotel 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 -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:2704' s Beneish M-Score Range Over the Past 10 Years
Min: -4.19   Med: -2.61   Max: 76.22
Current: -2.79

During the past 13 years, the highest Beneish M-Score of Ambassador Hotel was 76.22. The lowest was -4.19. And the median was -2.61.


Ambassador Hotel Beneish M-Score Historical Data

The historical data trend for Ambassador Hotel'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.

Ambassador Hotel Beneish M-Score Chart

Ambassador Hotel Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.91 -2.91 76.22 -4.19 -2.79

Ambassador Hotel 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.19 -3.86 -3.91 -2.81 -2.79

Competitive Comparison of Ambassador Hotel's Beneish M-Score

For the Lodging subindustry, Ambassador Hotel'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.


Ambassador Hotel's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Ambassador Hotel's Beneish M-Score distribution charts can be found below:

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


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Ambassador Hotel 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 Ambassador Hotel for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.3666+0.528 * 1.0326+0.404 * 1.0366+0.892 * 1.0185+0.115 * 0.9745
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6228+4.679 * 0.020932-0.327 * 0.8032
=-2.79

* 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.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was NT$52 Mil.
Revenue was 325.689 + 327.636 + 296.608 + 352.654 = NT$1,303 Mil.
Gross Profit was 87.067 + 89.408 + 78.108 + 109.846 = NT$364 Mil.
Total Current Assets was NT$21,484 Mil.
Total Assets was NT$34,340 Mil.
Property, Plant and Equipment(Net PPE) was NT$4,379 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$245 Mil.
Selling, General, & Admin. Expense(SGA) was NT$396 Mil.
Total Current Liabilities was NT$2,692 Mil.
Long-Term Debt & Capital Lease Obligation was NT$3,355 Mil.
Net Income was -218.851 + -333.408 + -8.721 + 1575.534 = NT$1,015 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 8.042 + 46.871 + 101.852 + 138.989 = NT$296 Mil.
Total Receivables was NT$139 Mil.
Revenue was 305.949 + 311.775 + 275.157 + 386.068 = NT$1,279 Mil.
Gross Profit was 66.898 + 87.559 + 74.92 + 140.095 = NT$369 Mil.
Total Current Assets was NT$15,242 Mil.
Total Assets was NT$25,686 Mil.
Property, Plant and Equipment(Net PPE) was NT$4,328 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$236 Mil.
Selling, General, & Admin. Expense(SGA) was NT$625 Mil.
Total Current Liabilities was NT$2,086 Mil.
Long-Term Debt & Capital Lease Obligation was NT$3,546 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)
=(51.806 / 1302.587) / (138.737 / 1278.949)
=0.039772 / 0.108477
=0.3666

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)
=(369.472 / 1278.949) / (364.429 / 1302.587)
=0.288887 / 0.279773
=1.0326

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 - (21484.471 + 4379.171) / 34340.316) / (1 - (15241.662 + 4327.608) / 25685.921)
=0.246843 / 0.238132
=1.0366

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
=1302.587 / 1278.949
=1.0185

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))
=(235.726 / (235.726 + 4327.608)) / (245.118 / (245.118 + 4379.171))
=0.051657 / 0.053007
=0.9745

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)
=(396.386 / 1302.587) / (624.87 / 1278.949)
=0.304307 / 0.488581
=0.6228

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)
=((3355.42 + 2692.269) / 34340.316) / ((3545.769 + 2086.007) / 25685.921)
=0.17611 / 0.219255
=0.8032

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
=(1014.554 - 0 - 295.754) / 34340.316
=0.020932

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.

Ambassador Hotel has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.


Ambassador Hotel Beneish M-Score Related Terms

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Ambassador Hotel Business Description

Traded in Other Exchanges
N/A
Address
Zhongshan North Road, No. 9, Lane 65, Section 2, Zhongshan District, Taipei, TWN, 104204
Ambassador Hotel Ltd operates in the lodging industry and engages in the operation and management of international hotels and within it restaurants, cafes, lounge bars, and clubs. The company operates in three segments based on the food service and accommodations in that area: Taipei, Hsinchu, and Kaohsiung. The majority of its revenue comes from Food and beverage sales, followed by Room revenue.

Ambassador Hotel Headlines

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