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Formosa Epitaxyorporation (TPE:3061) Beneish M-Score : -3.27 (As of Jun. 15, 2024)


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What is Formosa Epitaxyorporation 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.

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

TPE:3061' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Med: -3.31   Max: -2.49
Current: -3.27

During the past 5 years, the highest Beneish M-Score of Formosa Epitaxyorporation was -2.49. The lowest was -3.42. And the median was -3.31.


Formosa Epitaxyorporation Beneish M-Score Historical Data

The historical data trend for Formosa Epitaxyorporation'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.

Formosa Epitaxyorporation Beneish M-Score Chart

Formosa Epitaxyorporation Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Beneish M-Score
- - - - -3.31

Formosa Epitaxyorporation Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 -3.34 -3.31 -3.42 -3.35 -3.27

Competitive Comparison of Formosa Epitaxyorporation's Beneish M-Score

For the Semiconductors subindustry, Formosa Epitaxyorporation'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.


Formosa Epitaxyorporation's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Formosa Epitaxyorporation's Beneish M-Score distribution charts can be found below:

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



Formosa Epitaxyorporation 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 Formosa Epitaxyorporation 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 * 0.9655+0.528 * 0.54+0.404 * 0.9878+0.892 * 1.0156+0.115 * 0.9061
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2476+4.679 * -0.098018-0.327 * 1.029
=-3.27

* 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 (Sep14) TTM:Last Year (Sep13) TTM:
Total Receivables was NT$1,684 Mil.
Revenue was 1435.795 + 1410.139 + 940.738 + 856.362 = NT$4,643 Mil.
Gross Profit was -360.95 + -257.231 + -411.769 + -294.422 = NT$-1,324 Mil.
Total Current Assets was NT$6,824 Mil.
Total Assets was NT$18,383 Mil.
Property, Plant and Equipment(Net PPE) was NT$9,142 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,849 Mil.
Selling, General, & Admin. Expense(SGA) was NT$666 Mil.
Total Current Liabilities was NT$5,770 Mil.
Long-Term Debt & Capital Lease Obligation was NT$796 Mil.
Net Income was -542.797 + -462.781 + -547.459 + -387.412 = NT$-1,940 Mil.
Non Operating Income was 26.061 + -25.553 + -51.339 + 43.553 = NT$-7 Mil.
Cash Flow from Operations was 12.037 + -94.245 + -152.84 + 103.715 = NT$-131 Mil.
Total Receivables was NT$1,718 Mil.
Revenue was 1130.091 + 1450.728 + 930.376 + 1060.522 = NT$4,572 Mil.
Gross Profit was -233.675 + -126.142 + -142.995 + -201.39 = NT$-704 Mil.
Total Current Assets was NT$9,011 Mil.
Total Assets was NT$21,386 Mil.
Property, Plant and Equipment(Net PPE) was NT$9,529 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,714 Mil.
Selling, General, & Admin. Expense(SGA) was NT$526 Mil.
Total Current Liabilities was NT$5,144 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2,279 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)
=(1684.316 / 4643.034) / (1717.62 / 4571.717)
=0.362762 / 0.375706
=0.9655

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)
=(-704.202 / 4571.717) / (-1324.372 / 4643.034)
=-0.154034 / -0.285238
=0.54

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 - (6824.199 + 9141.547) / 18382.67) / (1 - (9010.962 + 9528.873) / 21386.457)
=0.131478 / 0.133104
=0.9878

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
=4643.034 / 4571.717
=1.0156

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))
=(1713.779 / (1713.779 + 9528.873)) / (1848.884 / (1848.884 + 9141.547))
=0.152435 / 0.168227
=0.9061

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)
=(666.251 / 4643.034) / (525.83 / 4571.717)
=0.143495 / 0.115018
=1.2476

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)
=((795.761 + 5769.982) / 18382.67) / ((2279.025 + 5144.315) / 21386.457)
=0.35717 / 0.347105
=1.029

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
=(-1940.449 - -7.278 - -131.333) / 18382.67
=-0.098018

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.

Formosa Epitaxyorporation has a M-score of -3.27 suggests that the company is unlikely to be a manipulator.


Formosa Epitaxyorporation Beneish M-Score Related Terms

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Formosa Epitaxyorporation (TPE:3061) Business Description

Traded in Other Exchanges
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Formosa Epitaxy Incorporation manufactures & distributes indium gallium nitride wafers & chips. Its products include InGaN wafers, green InGaN wafers & ultraviolet InGaN wafers which are used in display panels, automobile parts & other applications.

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