Chunghwa Telecom Co Stock Beneish M Score

CHT Stock  USD 37.61  0.36  0.95%   
This module uses fundamental data of Chunghwa Telecom to approximate the value of its Beneish M Score. Chunghwa Telecom M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Chunghwa Telecom Piotroski F Score and Chunghwa Telecom Altman Z Score analysis.
  
At this time, Chunghwa Telecom's Debt To Assets are comparatively stable compared to the past year. Long Term Debt To Capitalization is likely to gain to 0.08 in 2024, whereas Short Term Debt is likely to drop slightly above 5.4 B in 2024. At this time, Chunghwa Telecom's Days Payables Outstanding is comparatively stable compared to the past year. ROE is likely to gain to 0.13 in 2024, whereas Days Sales Outstanding is likely to drop 32.79 in 2024.
At this time, it appears that Chunghwa Telecom is an unlikely manipulator. The earnings manipulation may begin if Chunghwa Telecom's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Chunghwa Telecom executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Chunghwa Telecom's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.75
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.76

Focus
Asset Quality

0.71

Focus
Expense Coverage

0.75

Focus
Gross Margin Strengs

1.29

Focus
Accruals Factor

0.75

Focus
Depreciation Resistance

1.4

Focus
Net Sales Growth

1.0

Focus
Financial Leverage Condition

0.86

Focus

Chunghwa Telecom Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Chunghwa Telecom's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables24.6 B32.5 B
Way Down
Slightly volatile
Total Revenue222.9 B223.2 B
Slightly Down
Pretty Stable
Total Assets496.9 B523.7 B
Notably Down
Slightly volatile
Total Current Assets92.9 B103.2 B
Moderately Down
Slightly volatile
Non Current Assets Total400.6 B420.5 B
Sufficiently Down
Slightly volatile
Property Plant Equipment377.3 B359.3 B
Sufficiently Up
Slightly volatile
Selling General Administrative5.1 B6.8 B
Way Down
Slightly volatile
Total Current Liabilities52.8 B67.8 B
Significantly Down
Slightly volatile
Non Current Liabilities Total66.4 B63.3 B
Sufficiently Up
Slightly volatile
Short Term Debt5.4 B5.7 B
Notably Down
Pretty Stable
Long Term Debt32 B30.5 B
Sufficiently Up
Slightly volatile
Operating Income40.2 B46.4 B
Fairly Down
Slightly volatile
Total Cash From Operating Activities63.1 B74.6 B
Fairly Down
Pretty Stable
Short Term Investments20.4 B19.5 B
Sufficiently Up
Slightly volatile
Long Term Investments15.5 B14.7 B
Notably Up
Pretty Stable
Gross Profit Margin0.470.3648
Significantly Up
Slightly volatile

Chunghwa Telecom Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Chunghwa Telecom's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Chunghwa Telecom in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Chunghwa Telecom's degree of accounting gimmicks and manipulations.

About Chunghwa Telecom Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

168.45 Billion

At this time, Chunghwa Telecom's Other Operating Expenses is comparatively stable compared to the past year.

Chunghwa Telecom Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Chunghwa Telecom. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables25.7B28.2B29.5B30.7B32.5B24.6B
Total Revenue179.3B207.6B209.4B136.7B223.2B222.9B
Total Assets457.3B506.4B513.1B523.2B523.7B496.9B
Total Current Assets70.0B81.8B91.0B101.9B103.2B92.9B
Net Debt(16.4B)7.8B(864.7M)(6.7B)9.8B10.3B
Short Term Debt2.9B12.0B3.3B4.1B5.7B5.4B
Operating Income38.3B42.4B44.9B46.8B46.4B40.2B
Investments(27.1B)(66.5B)3.3B(29.8B)(38.4B)(40.3B)

Chunghwa Telecom ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Chunghwa Telecom's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Chunghwa Telecom's managers, analysts, and investors.
Environmental
Governance
Social

About Chunghwa Telecom Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chunghwa Telecom Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chunghwa Telecom using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chunghwa Telecom Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Additional Tools for Chunghwa Stock Analysis

When running Chunghwa Telecom's price analysis, check to measure Chunghwa Telecom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chunghwa Telecom is operating at the current time. Most of Chunghwa Telecom's value examination focuses on studying past and present price action to predict the probability of Chunghwa Telecom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chunghwa Telecom's price. Additionally, you may evaluate how the addition of Chunghwa Telecom to your portfolios can decrease your overall portfolio volatility.