Pou Chen (TPE:9904) Beneish M-Score : -2.19 (As of Dec. 15, 2024)

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What is Pou Chen 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 -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:9904' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.53 Max: -2.01
Current: -2.19

During the past 13 years, the highest Beneish M-Score of Pou Chen was -2.01. The lowest was -2.92. And the median was -2.53.

Pou Chen Beneish M-Score Historical Data

The historical data trend for Pou Chen'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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Pou Chen Beneish M-Score Chart

Pou Chen Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.57

-2.53

-2.69

-2.61

-2.70

Pou Chen 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															-2.79	-2.70	-2.52	-2.44	-2.19

Competitive Comparison of Pou Chen's Beneish M-Score

For the Footwear & Accessories subindustry, Pou Chen'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.

Pou Chen's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Pou Chen's Beneish M-Score distribution charts can be found below:

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

Pou Chen 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 Pou Chen 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 * 1.1673

0.528 * 0.9503

0.404 * 1.1736

0.892 * 1.0306

0.115 * 1.0296

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.907

4.679 * 0.004513

0.327 * 0.9207

-2.19

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was NT$40,106 Mil.
Revenue was 66803.825 + 65327.34 + 63288.874 + 60875.744 = NT$256,296 Mil.
Gross Profit was 16354.942 + 15548.231 + 16132.261 + 16712.478 = NT$64,748 Mil.
Total Current Assets was NT$172,900 Mil.
Total Assets was NT$359,598 Mil.
Property, Plant and Equipment(Net PPE) was NT$73,339 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$12,671 Mil.
Selling, General, & Admin. Expense(SGA) was NT$44,110 Mil.
Total Current Liabilities was NT$91,010 Mil.
Long-Term Debt & Capital Lease Obligation was NT$40,224 Mil.
Net Income was 5727.421 + 3413.441 + 4652.64 + 42.435 = NT$13,836 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 3034.694 + 1679.251 + -136.217 + 7635.302 = NT$12,213 Mil.

Total Receivables was NT$33,336 Mil.
Revenue was 58295.948 + 63095.229 + 64366.793 + 62919.855 = NT$248,678 Mil.
Gross Profit was 13961.896 + 14997.883 + 15438.738 + 15300.57 = NT$59,699 Mil.
Total Current Assets was NT$169,062 Mil.
Total Assets was NT$338,899 Mil.
Property, Plant and Equipment(Net PPE) was NT$78,804 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$14,090 Mil.
Selling, General, & Admin. Expense(SGA) was NT$47,185 Mil.
Total Current Liabilities was NT$85,081 Mil.
Long-Term Debt & Capital Lease Obligation was NT$49,258 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)
	=	(40105.725 / 256295.783)	/	(33336.339 / 248677.825)
	=	0.156482	/	0.134054
	=	1.1673

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)
	=	(59699.087 / 248677.825)	/	(64747.912 / 256295.783)
	=	0.240066	/	0.25263
	=	0.9503

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 - (172899.635 + 73338.903) / 359597.881)	/	(1 - (169062.131 + 78803.614) / 338898.878)
	=	0.315239	/	0.268614
	=	1.1736

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
	=	256295.783	/	248677.825
	=	1.0306

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))
	=	(14089.68 / (14089.68 + 78803.614))	/	(12671.153 / (12671.153 + 73338.903))
	=	0.151676	/	0.147322
	=	1.0296

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)
	=	(44109.879 / 256295.783)	/	(47185.45 / 248677.825)
	=	0.172105	/	0.189745
	=	0.907

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)
	=	((40223.763 + 91010.25) / 359597.881)	/	((49257.694 + 85080.612) / 338898.878)
	=	0.364947	/	0.396396
	=	0.9207

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
	=	(13835.937 - 0	-	12213.03)	/	359597.881
	=	0.004513

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.

Pou Chen has a M-score of -2.19 suggests that the company is unlikely to be a manipulator.

Pou Chen Beneish M-Score Related Terms

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Pou Chen Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Pou Chen Corp (TPE:9904) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 600, Section 4, Taiwan Boulevard, Xitun District, Taichung, TWN, 40764

Website

https://www.pouchen.com

Pou Chen Corp is engaged in the manufacturing and sale of shoes and the import and export of related products and materials. The firm also invests in the shoes and electronics industries. Its business is Footwear Business, Retail Business, and Other Business.

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