Fubon Financial Holdings 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 Fubon Financial Holdings Co 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 * 1 | + | 0.528 * 1 | + | 0.404 * 0.9995 | + | 0.892 * 2.1059 | + | 0.115 * 1.0381 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.5903 | + | 4.679 * 0.008627 | - | 0.327 * 1.0158 |
| = | -1.38 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was NT$0.00 Mil.
Revenue was 71626.292 + 84109.959 + 89194.873 + 15803.702 = NT$260,734.83 Mil.
Gross Profit was 71626.292 + 84109.959 + 89194.873 + 15803.702 = NT$260,734.83 Mil.
Total Current Assets was NT$0.00 Mil.
Total Assets was NT$11,815,240.42 Mil.
Property, Plant and Equipment(Net PPE) was NT$85,173.72 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$7,966.65 Mil.
Selling, General, & Admin. Expense(SGA) was NT$35,781.09 Mil.
Total Current Liabilities was NT$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was NT$447,445.69 Mil.
Net Income was 39994.71 + 50906.819 + 30407.666 + -1796.239 = NT$119,512.96 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0.00 Mil.
Cash Flow from Operations was 19898.862 + 42036.713 + -59881.723 + 15523.578 = NT$17,577.43 Mil.
|
Total Receivables was NT$0.00 Mil.
Revenue was 56581.785 + 67274.738 + 32232.016 + -32279.264 = NT$123,809.28 Mil.
Gross Profit was 56581.785 + 67274.738 + 32232.016 + -32279.264 = NT$123,809.28 Mil.
Total Current Assets was NT$0.00 Mil.
Total Assets was NT$11,082,302.29 Mil.
Property, Plant and Equipment(Net PPE) was NT$74,827.25 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$7,291.87 Mil.
Selling, General, & Admin. Expense(SGA) was NT$28,783.51 Mil.
Total Current Liabilities was NT$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was NT$413,144.02 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) |
| = | (0 / 260734.826) | / | (0 / 123809.275) |
| = | 0 | / | 0 |
| | = | 1 |
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) |
| = | (123809.275 / 123809.275) | / | (260734.826 / 260734.826) |
| = | 1 | / | 1 |
| | = | 1 |
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 - (0 + 85173.717) / 11815240.422) | / | (1 - (0 + 74827.251) / 11082302.287) |
| = | 0.992791 | / | 0.993248 |
| | = | 0.9995 |
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 |
| = | 260734.826 | / | 123809.275 |
| | = | 2.1059 |
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)) |
| = | (7291.871 / (7291.871 + 74827.251)) | / | (7966.648 / (7966.648 + 85173.717)) |
| = | 0.088796 | / | 0.085534 |
| | = | 1.0381 |
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) |
| = | (35781.092 / 260734.826) | / | (28783.514 / 123809.275) |
| = | 0.137232 | / | 0.232483 |
| | = | 0.5903 |
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) |
| = | ((447445.694 + 0) / 11815240.422) | / | ((413144.021 + 0) / 11082302.287) |
| = | 0.03787 | / | 0.03728 |
| | = | 1.0158 |
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 |
| = | (119512.956 - 0 | - | 17577.43) | / | 11815240.422 |
| | = | 0.008627 |
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.
Fubon Financial Holdings Co has a M-score of -1.38 signals that the company is likely to be a manipulator.
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