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Hsin BA Ba (TPE:9906) Beneish M-Score : 3.90 (As of Jun. 06, 2024)


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What is Hsin BA Ba 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 3.9 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TPE:9906' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Med: -0.54   Max: 37.72
Current: 3.9

During the past 13 years, the highest Beneish M-Score of Hsin BA Ba was 37.72. The lowest was -3.75. And the median was -0.54.


Hsin BA Ba Beneish M-Score Historical Data

The historical data trend for Hsin BA Ba'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.

Hsin BA Ba Beneish M-Score Chart

Hsin BA Ba Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.76 5.41 4.33 -1.76 3.43

Hsin BA Ba 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.49 -3.75 3.36 3.43 3.90

Competitive Comparison of Hsin BA Ba's Beneish M-Score

For the Engineering & Construction subindustry, Hsin BA Ba'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.


Hsin BA Ba's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Hsin BA Ba's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hsin BA Ba's Beneish M-Score falls into.



Hsin BA Ba 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 Hsin BA Ba 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 * 3.0132+0.528 * 0.9531+0.404 * 13.0864+0.892 * 1.1913+0.115 * 0.8286
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9676+4.679 * -0.107672-0.327 * 0.9375
=3.90

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was NT$8 Mil.
Revenue was 85.954 + 111.393 + 463.148 + 2532.875 = NT$3,193 Mil.
Gross Profit was 22.996 + 32.984 + 192.006 + 696.644 = NT$945 Mil.
Total Current Assets was NT$9,398 Mil.
Total Assets was NT$9,716 Mil.
Property, Plant and Equipment(Net PPE) was NT$18 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$10 Mil.
Selling, General, & Admin. Expense(SGA) was NT$350 Mil.
Total Current Liabilities was NT$7,443 Mil.
Long-Term Debt & Capital Lease Obligation was NT$811 Mil.
Net Income was -46.372 + -22.501 + 102.545 + 394.464 = NT$428 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -71.92 + -130.328 + 114.038 + 1562.468 = NT$1,474 Mil.
Total Receivables was NT$2 Mil.
Revenue was 620.499 + 344.313 + 458.459 + 1257.251 = NT$2,681 Mil.
Gross Profit was 157.916 + 86.728 + 130.436 + 380.643 = NT$756 Mil.
Total Current Assets was NT$10,677 Mil.
Total Assets was NT$10,723 Mil.
Property, Plant and Equipment(Net PPE) was NT$21 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$9 Mil.
Selling, General, & Admin. Expense(SGA) was NT$304 Mil.
Total Current Liabilities was NT$8,824 Mil.
Long-Term Debt & Capital Lease Obligation was NT$893 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)
=(8.014 / 3193.37) / (2.232 / 2680.522)
=0.00251 / 0.000833
=3.0132

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)
=(755.723 / 2680.522) / (944.63 / 3193.37)
=0.281931 / 0.29581
=0.9531

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 - (9397.725 + 18.075) / 9715.86) / (1 - (10677.415 + 20.668) / 10723.385)
=0.030884 / 0.00236
=13.0864

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
=3193.37 / 2680.522
=1.1913

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))
=(8.852 / (8.852 + 20.668)) / (10.25 / (10.25 + 18.075))
=0.299864 / 0.361871
=0.8286

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)
=(350.222 / 3193.37) / (303.828 / 2680.522)
=0.109672 / 0.113347
=0.9676

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)
=((810.806 + 7442.762) / 9715.86) / ((892.61 + 8823.745) / 10723.385)
=0.849494 / 0.90609
=0.9375

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
=(428.136 - 0 - 1474.258) / 9715.86
=-0.107672

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.

Hsin BA Ba has a M-score of 3.90 signals that the company is likely to be a manipulator.


Hsin BA Ba Beneish M-Score Related Terms

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Hsin BA Ba (TPE:9906) Business Description

Traded in Other Exchanges
N/A
Address
No.6, Minquan 2nd Road, 27th floor, Qianzhen District, Kaohsiung City, TWN, 80661
Hsin BA Ba Corp is engaged in designing, planning, and selling commercial and residential buildings. It also provides interior designing services and construction contracting services.

Hsin BA Ba (TPE:9906) Headlines

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