Strong H Machinery Technology Co (TPE:4560) Beneish M-Score : -2.26 (As of Apr. 14, 2025)

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What is Strong H Machinery Technology Co 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 -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Strong H Machinery Technology Co's Beneish M-Score or its related term are showing as below:

TPE:4560' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11 Med: -2.62 Max: -2.02
Current: -2.26

During the past 11 years, the highest Beneish M-Score of Strong H Machinery Technology Co was -2.02. The lowest was -3.11. And the median was -2.62.

Strong H Machinery Technology Co Beneish M-Score Historical Data

The historical data trend for Strong H Machinery Technology Co'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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Strong H Machinery Technology Co Beneish M-Score Chart

Strong H Machinery Technology Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.11

-2.11

-2.86

-2.98

-2.26

Strong H Machinery Technology Co 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															-2.98	-	-2.68	-2.54	-2.26

Competitive Comparison of Strong H Machinery Technology Co's Beneish M-Score

For the Tools & Accessories subindustry, Strong H Machinery Technology Co'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.

Strong H Machinery Technology Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Strong H Machinery Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Strong H Machinery Technology Co's Beneish M-Score falls into.

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Strong H Machinery Technology 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 Strong H Machinery Technology Co 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 * 1.0205

0.528 * 0.9603

0.404 * 1.1295

0.892 * 1.2963

0.115 * 0.9413

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9167

4.679 * -0.026639

0.327 * 0.9269

-2.26

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was NT$488 Mil.
Revenue was 449.583 + 411.456 + 407.772 + 338.462 = NT$1,607 Mil.
Gross Profit was 148.32 + 129.757 + 130.407 + 114.437 = NT$523 Mil.
Total Current Assets was NT$1,510 Mil.
Total Assets was NT$2,350 Mil.
Property, Plant and Equipment(Net PPE) was NT$736 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$74 Mil.
Selling, General, & Admin. Expense(SGA) was NT$289 Mil.
Total Current Liabilities was NT$461 Mil.
Long-Term Debt & Capital Lease Obligation was NT$0 Mil.
Net Income was 47.092 + 38.806 + 35.506 + 17.273 = NT$139 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 95.391 + 45.761 + 59.602 + 0.521 = NT$201 Mil.

Total Receivables was NT$369 Mil.
Revenue was 331.196 + 311.852 + 335.875 + 260.934 = NT$1,240 Mil.
Gross Profit was 113.492 + 97.285 + 97.78 + 78.814 = NT$387 Mil.
Total Current Assets was NT$1,458 Mil.
Total Assets was NT$2,242 Mil.
Property, Plant and Equipment(Net PPE) was NT$696 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$66 Mil.
Selling, General, & Admin. Expense(SGA) was NT$243 Mil.
Total Current Liabilities was NT$475 Mil.
Long-Term Debt & Capital Lease Obligation was NT$0 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)
	=	(488.475 / 1607.273)	/	(369.256 / 1239.857)
	=	0.303915	/	0.297821
	=	1.0205

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)
	=	(387.371 / 1239.857)	/	(522.921 / 1607.273)
	=	0.312432	/	0.325347
	=	0.9603

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 - (1509.807 + 735.819) / 2349.874)	/	(1 - (1458.303 + 695.77) / 2242.132)
	=	0.044363	/	0.039275
	=	1.1295

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
	=	1607.273	/	1239.857
	=	1.2963

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))
	=	(65.669 / (65.669 + 695.77))	/	(74.213 / (74.213 + 735.819))
	=	0.086243	/	0.091617
	=	0.9413

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)
	=	(288.617 / 1607.273)	/	(242.868 / 1239.857)
	=	0.179569	/	0.195884
	=	0.9167

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)
	=	((0 + 461.076) / 2349.874)	/	((0 + 474.639) / 2242.132)
	=	0.196213	/	0.211691
	=	0.9269

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
	=	(138.677 - 0	-	201.275)	/	2349.874
	=	-0.026639

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.

Strong H Machinery Technology Co has a M-score of -2.26 suggests that the company is unlikely to be a manipulator.

Strong H Machinery Technology Co Beneish M-Score Related Terms

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Strong H Machinery Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Strong H Machinery Technology Co (TPE:4560) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1699, Open road, Development zone, Shandong Province, Laizhou, CHN

Website

http://www.strongh.cn

Strong H Machinery Technology Co is a manufacturer of sewing machine spare parts in China. The company offers various types of industrial sewing machine knives, needle plates, teeth, presser feet, and needle embroidery machine knives. Its other products include the Overlock sewing machine automatic trimmer device, Interlock sewing machine automatic trimmer device, and Interlock Sewing Machine Belt Cutting Device. The company's operating segment includes Sewing machine spare parts and Face mask machines. It generates maximum revenue from the Sewing machine spare parts segment.

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