Longda Construction & Development (TPE:5519) Beneish M-Score : -1.61 (As of Jan. 18, 2025)

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What is Longda 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.

Warning Sign:

Beneish M-Score -1.61 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TPE:5519' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88 Med: -2.23 Max: -0.45
Current: -1.61

During the past 13 years, the highest Beneish M-Score of Longda Construction & Development was -0.45. The lowest was -2.88. And the median was -2.23.

Longda Construction & Development Beneish M-Score Historical Data

The historical data trend for Longda 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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Longda Construction & Development Beneish M-Score Chart

Longda Construction & Development Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.86

-2.47

-2.15

-2.88

-2.06

Longda Construction & Development Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-1.98	-2.06	-2.41	-1.43	-1.61

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

For the Engineering & Construction subindustry, Longda 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.

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

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

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

Longda 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 Longda 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 * 0.2825

0.528 * 1.3293

0.404 * 1.0018

0.892 * 2.3023

0.115 * 0.6802

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5764

4.679 * 0.033235

0.327 * 1.0064

-1.61

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was NT$138 Mil.
Revenue was 490.337 + 724.455 + 2422.836 + 2633.144 = NT$6,271 Mil.
Gross Profit was 96.275 + 195.06 + 457.551 + 830.508 = NT$1,579 Mil.
Total Current Assets was NT$13,381 Mil.
Total Assets was NT$14,106 Mil.
Property, Plant and Equipment(Net PPE) was NT$53 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$27 Mil.
Selling, General, & Admin. Expense(SGA) was NT$423 Mil.
Total Current Liabilities was NT$4,518 Mil.
Long-Term Debt & Capital Lease Obligation was NT$4,246 Mil.
Net Income was 38.431 + 104.24 + 266.404 + 517.6 = NT$927 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -914.552 + -280.732 + 306.38 + 1346.766 = NT$458 Mil.

Total Receivables was NT$212 Mil.
Revenue was 417.186 + 872.896 + 442.345 + 991.323 = NT$2,724 Mil.
Gross Profit was 119.619 + 295.234 + 142.096 + 355.007 = NT$912 Mil.
Total Current Assets was NT$12,258 Mil.
Total Assets was NT$12,958 Mil.
Property, Plant and Equipment(Net PPE) was NT$85 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$25 Mil.
Selling, General, & Admin. Expense(SGA) was NT$319 Mil.
Total Current Liabilities was NT$3,218 Mil.
Long-Term Debt & Capital Lease Obligation was NT$4,783 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)
	=	(137.716 / 6270.772)	/	(211.784 / 2723.75)
	=	0.021962	/	0.077755
	=	0.2825

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)
	=	(911.956 / 2723.75)	/	(1579.394 / 6270.772)
	=	0.334816	/	0.251866
	=	1.3293

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 - (13381.416 + 53.256) / 14105.871)	/	(1 - (12257.746 + 84.502) / 12957.698)
	=	0.047583	/	0.047497
	=	1.0018

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
	=	6270.772	/	2723.75
	=	2.3023

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))
	=	(25.039 / (25.039 + 84.502))	/	(26.955 / (26.955 + 53.256))
	=	0.228581	/	0.336051
	=	0.6802

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)
	=	(422.925 / 6270.772)	/	(318.72 / 2723.75)
	=	0.067444	/	0.117015
	=	0.5764

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)
	=	((4246.207 + 4518.344) / 14105.871)	/	((4782.552 + 3217.661) / 12957.698)
	=	0.621341	/	0.61741
	=	1.0064

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
	=	(926.675 - 0	-	457.862)	/	14105.871
	=	0.033235

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.

Longda Construction & Development has a M-score of -1.61 signals that the company is likely to be a manipulator.

Longda Construction & Development Beneish M-Score Related Terms

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Longda Construction & Development Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Longda Construction & Development Corp (TPE:5519) » Definitions » Beneish M-Score

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Address

No. 380, Minquan 2nd Road, 18th Floor-1, Qianzhen District, Kaohsiung, TWN

Website

https://www.longda.com.tw

Longda Construction & Development Corp is engaged in the integrated construction business of construction and civil engineering, as well as the development, leasing and sale of residential housing and buildings.

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