Taiwan Semiconductor Manufacturing Company Ltd. TSM
- Market cap
- $2.40T
- P/E
- 33.1×
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Beneish M-score
Taiwan Semiconductor Manufacturing Company Ltd.'s Beneish M-score for fiscal 2025 is −1.87; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −1.87 | 0.37 |
| FY2024 | −2.25 | 1.02 |
| FY2023 | −3.27 | (0.93) |
| FY2022 | −2.34 | 0.61 |
| FY2021 | −2.95 | 0.31 |
| FY2020 | −3.25 | (0.62) |
| FY2019 | −2.63 | 0.77 |
| FY2018 | −3.40 | (0.63) |
| FY2017 | −2.77 | (0.39) |
| FY2016 | −2.37 | 0.41 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.63 | — | 1.50 | |
| Gross margin index | 0.94 | — | 0.49 | |
| Asset quality index | 0.97 | — | 0.39 | |
| Sales growth index | 1.38 | — | 1.23 | |
| Depreciation index | 1.08 | — | 0.12 | |
| SG&A index | 0.78 | — | −0.13 | |
| Total accruals to total assets | (0.07) | — | −0.34 | |
| Leverage index | 0.90 | — | −0.29 | |
| Beneish M-score | Elevated | −1.87 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| AMD Advanced Micro Devices, Inc. compare | −2.7× |
| MU Micron Technology, Inc. compare | −2.7× |
| TXN Texas Instruments Incorporated compare | −2.7× |
| INTC Intel Corporation compare | −2.6× |
| AVGO Broadcom Inc. compare | −2.1× |
| TSM Taiwan Semiconductor Manufacturing Company Ltd. | −1.9× |
| MRVL Marvell Technology, Inc. compare | −1.6× |
| NVDA NVIDIA Corporation compare | −1.2× |
| ARM ARM Holdings PLC Sponsored ADR compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI