Radiant Opto-Electronics (TPE:6176) Beneish M-Score : -1.93 (As of May. 15, 2024)

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What is Radiant Opto-Electronics 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 -1.93 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:6176' s Beneish M-Score Range Over the Past 10 Years
Min: -3.54 Med: -2.56 Max: -0.04
Current: -1.93

During the past 13 years, the highest Beneish M-Score of Radiant Opto-Electronics was -0.04. The lowest was -3.54. And the median was -2.56.

Radiant Opto-Electronics Beneish M-Score Historical Data

The historical data trend for Radiant Opto-Electronics'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.

Radiant Opto-Electronics Beneish M-Score Chart

Radiant Opto-Electronics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.54

-1.48

-2.95

-2.99

-1.97

Radiant Opto-Electronics Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-3.30	-3.00	-2.48	-1.97	-1.93

Competitive Comparison of Radiant Opto-Electronics's Beneish M-Score

For the Electronic Components subindustry, Radiant Opto-Electronics'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.

Radiant Opto-Electronics's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Radiant Opto-Electronics's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Radiant Opto-Electronics's Beneish M-Score falls into.

Radiant Opto-Electronics 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 Radiant Opto-Electronics 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 * 1.6557

0.528 * 0.975

0.404 * 1.4367

0.892 * 0.8524

0.115 * 0.8843

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.231

4.679 * -0.013364

0.327 * 0.8951

-1.93

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$13,276 Mil.
Revenue was 10827.18 + 11635.874 + 11388.289 + 11814.238 = NT$45,666 Mil.
Gross Profit was 2112.966 + 2432.46 + 2365.113 + 2441.625 = NT$9,352 Mil.
Total Current Assets was NT$55,403 Mil.
Total Assets was NT$60,361 Mil.
Property, Plant and Equipment(Net PPE) was NT$3,148 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$772 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,352 Mil.
Total Current Liabilities was NT$19,871 Mil.
Long-Term Debt & Capital Lease Obligation was NT$392 Mil.
Net Income was 1944.823 + 404.917 + 1904.464 + 2230.585 = NT$6,485 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 3296.48 + 185.299 + 2665.419 + 1144.282 = NT$7,291 Mil.

Total Receivables was NT$9,407 Mil.
Revenue was 9250.179 + 15302.863 + 17998.314 + 11022.003 = NT$53,573 Mil.
Gross Profit was 1638.404 + 3233.301 + 3848.012 + 1978.182 = NT$10,698 Mil.
Total Current Assets was NT$57,405 Mil.
Total Assets was NT$61,974 Mil.
Property, Plant and Equipment(Net PPE) was NT$3,275 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$691 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,288 Mil.
Total Current Liabilities was NT$22,752 Mil.
Long-Term Debt & Capital Lease Obligation was NT$492 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)
	=	(13275.666 / 45665.581)	/	(9406.789 / 53573.359)
	=	0.290715	/	0.175587
	=	1.6557

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)
	=	(10697.899 / 53573.359)	/	(9352.164 / 45665.581)
	=	0.199687	/	0.204797
	=	0.975

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 - (55403.045 + 3148.123) / 60360.781)	/	(1 - (57405.243 + 3275.402) / 61973.848)
	=	0.02998	/	0.020867
	=	1.4367

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
	=	45665.581	/	53573.359
	=	0.8524

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))
	=	(690.651 / (690.651 + 3275.402))	/	(771.951 / (771.951 + 3148.123))
	=	0.174141	/	0.196923
	=	0.8843

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)
	=	(1351.654 / 45665.581)	/	(1288.192 / 53573.359)
	=	0.029599	/	0.024045
	=	1.231

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)
	=	((392.285 + 19871.22) / 60360.781)	/	((491.611 + 22751.597) / 61973.848)
	=	0.335706	/	0.375049
	=	0.8951

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
	=	(6484.789 - 0	-	7291.48)	/	60360.781
	=	-0.013364

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.

Radiant Opto-Electronics has a M-score of -1.93 suggests that the company is unlikely to be a manipulator.

Radiant Opto-Electronics Beneish M-Score Related Terms

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Radiant Opto-Electronics (TPE:6176) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Radiant Opto-Electronics Corp (TPE:6176) » Definitions » Beneish M-Score

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Address

No. 1, Central 6th Road, Qianzhen District, Kaohsiung City, TWN

Website

https://www.radiant.com.tw

Radiant Opto-Electronics Corp is a Taiwan-based company that is principally engaged in designing, manufacturing, assembling, and marketing backlight modules. The Group has two reportable segments: the domestic segment and Mainland China segment. The domestic segment engages in the manufacture and sale of light guide plates, backlight modules for LCDs, and lighting component. The Mainland China segment uses the technologies provided by the domestic segment to develop new designs of products according to the demands of various customers. Majority of revenue is generated from Mainland China.

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