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Binggrae Co (XKRX:005180) Beneish M-Score : -3.02 (As of May. 15, 2024)


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What is Binggrae 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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:005180' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Med: -2.64   Max: -2
Current: -3.02

During the past 13 years, the highest Beneish M-Score of Binggrae Co was -2.00. The lowest was -3.11. And the median was -2.64.


Binggrae Co Beneish M-Score Historical Data

The historical data trend for Binggrae 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.

Binggrae Co Beneish M-Score Chart

Binggrae 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 -2.70 -2.12 -3.11 -2.00 -3.02

Binggrae Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -2.00 -2.12 -2.61 -2.33 -3.02

Competitive Comparison of Binggrae Co's Beneish M-Score

For the Packaged Foods subindustry, Binggrae 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.


Binggrae Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Binggrae Co's Beneish M-Score distribution charts can be found below:

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



Binggrae 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 Binggrae 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 * 0.9313+0.528 * 0.8369+0.404 * 0.7548+0.892 * 1.0999+0.115 * 1.1027
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9503+4.679 * -0.079154-0.327 * 1.0823
=-3.02

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was ₩85,339 Mil.
Revenue was 277843.877 + 434235.765 + 388727.86 + 293508.88 = ₩1,394,316 Mil.
Gross Profit was 78946.371 + 152272.816 + 128839.412 + 81124.173 = ₩441,183 Mil.
Total Current Assets was ₩395,032 Mil.
Total Assets was ₩890,717 Mil.
Property, Plant and Equipment(Net PPE) was ₩383,761 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩61,847 Mil.
Selling, General, & Admin. Expense(SGA) was ₩170,274 Mil.
Total Current Liabilities was ₩182,125 Mil.
Long-Term Debt & Capital Lease Obligation was ₩32,381 Mil.
Net Income was -13022.597 + 52909.728 + 37631.766 + 8699.598 = ₩86,218 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 2471.416 + 91401.394 + 66916.79 + -4067.243 = ₩156,722 Mil.
Total Receivables was ₩83,314 Mil.
Revenue was 256947.126 + 390609.009 + 364398.296 + 255731.393 = ₩1,267,686 Mil.
Gross Profit was 54643.037 + 109980.026 + 107149.419 + 63938.75 = ₩335,711 Mil.
Total Current Assets was ₩315,268 Mil.
Total Assets was ₩769,267 Mil.
Property, Plant and Equipment(Net PPE) was ₩325,943 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩58,900 Mil.
Selling, General, & Admin. Expense(SGA) was ₩162,901 Mil.
Total Current Liabilities was ₩152,446 Mil.
Long-Term Debt & Capital Lease Obligation was ₩18,722 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)
=(85338.503 / 1394316.382) / (83314.493 / 1267685.824)
=0.061205 / 0.065722
=0.9313

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)
=(335711.232 / 1267685.824) / (441182.772 / 1394316.382)
=0.264822 / 0.316415
=0.8369

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 - (395032.408 + 383760.657) / 890717.26) / (1 - (315267.835 + 325942.898) / 769266.588)
=0.125656 / 0.166465
=0.7548

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
=1394316.382 / 1267685.824
=1.0999

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))
=(58900.44 / (58900.44 + 325942.898)) / (61846.522 / (61846.522 + 383760.657))
=0.15305 / 0.138792
=1.1027

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)
=(170273.553 / 1394316.382) / (162900.577 / 1267685.824)
=0.12212 / 0.128502
=0.9503

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)
=((32381.339 + 182124.834) / 890717.26) / ((18722.022 + 152445.67) / 769266.588)
=0.240824 / 0.222508
=1.0823

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
=(86218.495 - 0 - 156722.357) / 890717.26
=-0.079154

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.

Binggrae Co has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.


Binggrae Co Beneish M-Score Related Terms

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Binggrae Co (XKRX:005180) Business Description

Traded in Other Exchanges
N/A
Address
45, Dasansunhwan-ro, Gyeonggi-do, Namyangju-si, KOR
Binggrae Co Ltd is a Korea-based company engaged in the manufacturing and processing of dairy products and snacks. The business activity of the group is primarily operated through two divisions namely Refrigeration and Cold storage division. The Refrigeration division is engaged in the production of Ice cream and other frozen snacks, and Cold storage division engaged in the production of Dairy drinks such as milk and yogurt as well as other snacks. The products are offered under the brand name of Melona, Samanco, Pop Top, Pangtoa and others.

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