Wistron (TPE:3231) Beneish M-Score : -2.52 (As of May. 21, 2024)

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What is Wistron 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:3231' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.56 Max: -1.6
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Wistron was -1.60. The lowest was -3.19. And the median was -2.56.

Wistron Beneish M-Score Historical Data

The historical data trend for Wistron'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.

Wistron Beneish M-Score Chart

Wistron Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.61

-2.41

-2.01

-3.17

-2.66

Wistron 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															-3.12	-2.80	-2.24	-2.66	-2.52

Competitive Comparison of Wistron's Beneish M-Score

For the Computer Hardware subindustry, Wistron'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.

Wistron's Beneish M-Score Distribution in the Hardware Industry

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

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

Wistron 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 Wistron 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 * 1.4337

0.528 * 0.9273

0.404 * 1.0731

0.892 * 0.9219

0.115 * 0.938

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.064

4.679 * -0.075728

0.327 * 0.9717

-2.52

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$135,857 Mil.
Revenue was 239325.146 + 230539.572 + 217040.268 + 207476.96 = NT$894,382 Mil.
Gross Profit was 17229.962 + 21411.578 + 17042.3 + 15677.4 = NT$71,361 Mil.
Total Current Assets was NT$366,985 Mil.
Total Assets was NT$461,997 Mil.
Property, Plant and Equipment(Net PPE) was NT$57,710 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$12,096 Mil.
Selling, General, & Admin. Expense(SGA) was NT$17,628 Mil.
Total Current Liabilities was NT$284,712 Mil.
Long-Term Debt & Capital Lease Obligation was NT$32,335 Mil.
Net Income was 3523.54 + 3337.124 + 4702.41 + 3258.323 = NT$14,821 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 3127.081 + 35197.497 + 15511.915 + -4028.754 = NT$49,808 Mil.

Total Receivables was NT$102,790 Mil.
Revenue was 212000.207 + 263854.297 + 250103.107 + 244215.971 = NT$970,174 Mil.
Gross Profit was 14851.595 + 22677.811 + 17874.104 + 16380.878 = NT$71,784 Mil.
Total Current Assets was NT$332,844 Mil.
Total Assets was NT$426,198 Mil.
Property, Plant and Equipment(Net PPE) was NT$61,286 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$11,894 Mil.
Selling, General, & Admin. Expense(SGA) was NT$17,972 Mil.
Total Current Liabilities was NT$283,976 Mil.
Long-Term Debt & Capital Lease Obligation was NT$17,024 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)
	=	(135857.017 / 894381.946)	/	(102789.742 / 970173.582)
	=	0.1519	/	0.10595
	=	1.4337

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)
	=	(71784.388 / 970173.582)	/	(71361.24 / 894381.946)
	=	0.073991	/	0.079788
	=	0.9273

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 - (366984.814 + 57709.777) / 461997.398)	/	(1 - (332843.982 + 61286.087) / 426198.311)
	=	0.080742	/	0.075243
	=	1.0731

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
	=	894381.946	/	970173.582
	=	0.9219

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))
	=	(11893.961 / (11893.961 + 61286.087))	/	(12095.575 / (12095.575 + 57709.777))
	=	0.16253	/	0.173276
	=	0.938

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)
	=	(17628.432 / 894381.946)	/	(17972.139 / 970173.582)
	=	0.01971	/	0.018525
	=	1.064

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)
	=	((32335.364 + 284712.134) / 461997.398)	/	((17023.869 + 283975.834) / 426198.311)
	=	0.686254	/	0.706243
	=	0.9717

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
	=	(14821.397 - 0	-	49807.739)	/	461997.398
	=	-0.075728

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.

Wistron has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.

Wistron Beneish M-Score Related Terms

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Wistron (TPE:3231) Business Description

Industry

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Traded in Other Exchanges

WSTRN:Luxembourg

Address

No.5 , Xinan Road, East District, Hsinchu, TWN, 30076

Website

https://www.wistron.com

Wistron Corp is an original design manufacturer of information and communication technology products. The company offers end-to-end services from the initial conceptualization and development of a product through to volume manufacturing and after-sale services. The in-house capabilities of the firm include design and engineering challenges such as styling considerations, component selection, prototyping, 3D modeling, testing, and packaging. The firm has operations in Asia, Europe, and North America.

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