Klabin (BSP:KLBN11) Beneish M-Score : -2.73 (As of May. 15, 2024)

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What is Klabin 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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:KLBN11' s Beneish M-Score Range Over the Past 10 Years
Min: -3.91 Med: -2.75 Max: -2.11
Current: -2.73

During the past 13 years, the highest Beneish M-Score of Klabin was -2.11. The lowest was -3.91. And the median was -2.75.

Klabin Beneish M-Score Historical Data

The historical data trend for Klabin'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.

Klabin Beneish M-Score Chart

Klabin Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.76

-3.91

-2.25

-2.93

-2.91

Klabin 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															-2.89	-3.08	-3.00	-2.91	-2.73

Competitive Comparison of Klabin's Beneish M-Score

For the Paper & Paper Products subindustry, Klabin'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.

Klabin's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Klabin's Beneish M-Score distribution charts can be found below:

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

Klabin 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 Klabin 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 * 1.1427

0.528 * 1.3776

0.404 * 0.9976

0.892 * 0.8621

0.115 * 1.0563

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8606

4.679 * -0.103256

0.327 * 1.0008

-2.73

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$2,397 Mil.
Revenue was 4429.583 + 4500.002 + 4400.407 + 4292.579 = R$17,623 Mil.
Gross Profit was 1633.841 + 1449.029 + 1303.572 + 1741.909 = R$6,128 Mil.
Total Current Assets was R$18,008 Mil.
Total Assets was R$56,794 Mil.
Property, Plant and Equipment(Net PPE) was R$27,385 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,472 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,703 Mil.
Total Current Liabilities was R$6,444 Mil.
Long-Term Debt & Capital Lease Obligation was R$32,412 Mil.
Net Income was 425.525 + 630.657 + 258.302 + 640.939 = R$1,955 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 1928.398 + 2641.352 + 1064.628 + 2185.411 = R$7,820 Mil.

Total Receivables was R$2,433 Mil.
Revenue was 4830.761 + 5083.386 + 5488.228 + 5038.955 = R$20,441 Mil.
Gross Profit was 2354.936 + 1874.463 + 3279.808 + 2283.868 = R$9,793 Mil.
Total Current Assets was R$12,976 Mil.
Total Assets was R$49,382 Mil.
Property, Plant and Equipment(Net PPE) was R$26,468 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,571 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,295 Mil.
Total Current Liabilities was R$6,264 Mil.
Long-Term Debt & Capital Lease Obligation was R$27,493 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)
	=	(2397.054 / 17622.571)	/	(2433.296 / 20441.33)
	=	0.136022	/	0.119038
	=	1.1427

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)
	=	(9793.075 / 20441.33)	/	(6128.351 / 17622.571)
	=	0.479082	/	0.347756
	=	1.3776

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 - (18008.18 + 27385.068) / 56794.422)	/	(1 - (12976.41 + 26467.817) / 49381.534)
	=	0.200745	/	0.201235
	=	0.9976

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
	=	17622.571	/	20441.33
	=	0.8621

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))
	=	(3570.679 / (3570.679 + 26467.817))	/	(3472.393 / (3472.393 + 27385.068))
	=	0.11887	/	0.11253
	=	1.0563

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)
	=	(1702.56 / 17622.571)	/	(2294.724 / 20441.33)
	=	0.096612	/	0.112259
	=	0.8606

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)
	=	((32411.832 + 6444.189) / 56794.422)	/	((27493.353 + 6263.538) / 49381.534)
	=	0.684152	/	0.683593
	=	1.0008

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
	=	(1955.423 - 0	-	7819.789)	/	56794.422
	=	-0.103256

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.

Klabin has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.

Klabin Beneish M-Score Related Terms

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Klabin (BSP:KLBN11) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Klabin SA (BSP:KLBN11) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

KLBAY:USA KLBN4:Brazil KLBN3:Brazil

Address

Avenida Brigadeiro Faria Lima 3600, 3rd, 4th and 5th Floor, Itaim Bibi, Sao Paulo, SP, BRA, 04538-132

Website

https://www.klabin.com.br

Klabin SA manufactures and sells timber, pulp, and a variety of paper products. It owns and operates forests in Brazil and harvests timber. The timber is either sold to third parties or transported to the firm's mills, which produce pulp and paper products. The firm organizes itself into four segments based on product type: forestry, paper, conversion, and pulp. The forestry segment involves operations related to planting and growing pine and eucalyptus trees and selling timber to third parties; the other segments involve the production and sale of paper products. The paper and pulp segments contribute heavily to the company's overall revenue. Klabin has a global presence.

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