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GlobalWafers Co (ROCO:6488) Beneish M-Score : -2.27 (As of May. 12, 2024)


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What is GlobalWafers 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 -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ROCO:6488' s Beneish M-Score Range Over the Past 10 Years
Min: -3.93   Med: -2.59   Max: -1.97
Current: -2.27

During the past 12 years, the highest Beneish M-Score of GlobalWafers Co was -1.97. The lowest was -3.93. And the median was -2.59.


GlobalWafers Co Beneish M-Score Historical Data

The historical data trend for GlobalWafers 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.

* Premium members only.

GlobalWafers Co Beneish M-Score Chart

GlobalWafers Co 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 -2.57 -2.68 -2.59 -3.12 -2.28

GlobalWafers Co 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 -2.85 -2.60 -2.37 -2.28 -2.27

Competitive Comparison of GlobalWafers Co's Beneish M-Score

For the Semiconductors subindustry, GlobalWafers 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.


GlobalWafers Co's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, GlobalWafers Co's Beneish M-Score distribution charts can be found below:

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



GlobalWafers 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 GlobalWafers Co 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 * 1.0614+0.528 * 1.1893+0.404 * 1.0704+0.892 * 0.9246+0.115 * 1.6069
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1302+4.679 * 0.010625-0.327 * 1.027
=-2.27

* 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$10,061 Mil.
Revenue was 15087.063 + 16763.269 + 17375.91 + 17896.26 = NT$67,123 Mil.
Gross Profit was 5167.575 + 5783.93 + 6361.416 + 6743.934 = NT$24,057 Mil.
Total Current Assets was NT$94,088 Mil.
Total Assets was NT$202,783 Mil.
Property, Plant and Equipment(Net PPE) was NT$83,316 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$6,985 Mil.
Selling, General, & Admin. Expense(SGA) was NT$3,756 Mil.
Total Current Liabilities was NT$67,564 Mil.
Long-Term Debt & Capital Lease Obligation was NT$29,007 Mil.
Net Income was 3533.833 + 4443.217 + 5539.242 + 4789.361 = NT$18,306 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 2088.338 + 5904.938 + 4562.04 + 3595.747 = NT$16,151 Mil.
Total Receivables was NT$10,253 Mil.
Revenue was 18616.154 + 18387.772 + 18052.791 + 17539.783 = NT$72,597 Mil.
Gross Profit was 7551.286 + 7857.464 + 7891.569 + 7644.731 = NT$30,945 Mil.
Total Current Assets was NT$111,565 Mil.
Total Assets was NT$175,971 Mil.
Property, Plant and Equipment(Net PPE) was NT$43,830 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$6,221 Mil.
Selling, General, & Admin. Expense(SGA) was NT$3,594 Mil.
Total Current Liabilities was NT$36,366 Mil.
Long-Term Debt & Capital Lease Obligation was NT$45,235 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)
=(10061.362 / 67122.502) / (10252.599 / 72596.5)
=0.149896 / 0.141227
=1.0614

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)
=(30945.05 / 72596.5) / (24056.855 / 67122.502)
=0.426261 / 0.358402
=1.1893

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 - (94087.736 + 83316.204) / 202783.085) / (1 - (111565.213 + 43830.267) / 175970.911)
=0.125154 / 0.116925
=1.0704

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
=67122.502 / 72596.5
=0.9246

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))
=(6221.42 / (6221.42 + 43830.267)) / (6985.311 / (6985.311 + 83316.204))
=0.1243 / 0.077355
=1.6069

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)
=(3755.694 / 67122.502) / (3594.043 / 72596.5)
=0.055953 / 0.049507
=1.1302

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)
=((29007.183 + 67564.124) / 202783.085) / ((45235.269 + 36366.243) / 175970.911)
=0.47623 / 0.463722
=1.027

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
=(18305.653 - 0 - 16151.063) / 202783.085
=0.010625

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.

GlobalWafers Co has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.


GlobalWafers Co Beneish M-Score Related Terms

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GlobalWafers Co (ROCO:6488) Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Industrial East Road 2, Science-Based Industrial Park, Hsinchu, TWN
GlobalWafers is 51% owned by Sino-American Silicon Products Inc, after being spun off in 2011. The main source of the company's revenue is selling silicon wafers to chipmakers like Taiwan Semiconductor and Texas Instruments. It also derives sales from nonsilicon wafers and green energy. GlobalWafers runs 17 production sites in nine countries across Asia, North America, and Europe. GlobalWafers is headquartered in Hsinchu, Taiwan, and employs over 7,000 people.

GlobalWafers Co (ROCO:6488) Headlines

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