Oriental Precision & Engineering Co (XKRX:014940) Beneish M-Score : -2.83 (As of May. 24, 2024)

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What is Oriental Precision & Engineering 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:014940' s Beneish M-Score Range Over the Past 10 Years
Min: -4.81 Med: -2.68 Max: -1.5
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Oriental Precision & Engineering Co was -1.50. The lowest was -4.81. And the median was -2.68.

Oriental Precision & Engineering Co Beneish M-Score Historical Data

The historical data trend for Oriental Precision & Engineering 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.

Oriental Precision & Engineering Co Beneish M-Score Chart

Oriental Precision & Engineering Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.75

-1.64

-2.67

-2.48

-2.76

Oriental Precision & Engineering Co 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															-2.23	-2.54	-2.79	-2.76	-2.83

Competitive Comparison of Oriental Precision & Engineering Co's Beneish M-Score

For the Aerospace & Defense subindustry, Oriental Precision & Engineering 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.

Oriental Precision & Engineering Co's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Oriental Precision & Engineering Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Oriental Precision & Engineering Co's Beneish M-Score falls into.

Oriental Precision & Engineering 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 Oriental Precision & Engineering Co 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 * 0.67

0.528 * 0.9725

0.404 * 1.0542

0.892 * 1.2719

0.115 * 0.8716

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9038

4.679 * -0.064381

0.327 * 0.9961

-2.83

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩15,195 Mil.
Revenue was 43114.865 + 43895.769 + 37846.159 + 43012.297 = ₩167,869 Mil.
Gross Profit was 6720.919 + 5488.725 + 5287.412 + 7257.63 = ₩24,755 Mil.
Total Current Assets was ₩61,838 Mil.
Total Assets was ₩204,358 Mil.
Property, Plant and Equipment(Net PPE) was ₩136,133 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩2,057 Mil.
Selling, General, & Admin. Expense(SGA) was ₩3,776 Mil.
Total Current Liabilities was ₩57,856 Mil.
Long-Term Debt & Capital Lease Obligation was ₩27,929 Mil.
Net Income was 4077.368 + -348.236 + 2575.527 + 4482.857 = ₩10,788 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 2232.063 + 7580.659 + 6184.689 + 7946.946 = ₩23,944 Mil.

Total Receivables was ₩17,831 Mil.
Revenue was 32778.493 + 32649.538 + 30491.736 + 36067.544 = ₩131,987 Mil.
Gross Profit was 4657.905 + 3572.107 + 3772.357 + 6926.172 = ₩18,929 Mil.
Total Current Assets was ₩48,312 Mil.
Total Assets was ₩190,183 Mil.
Property, Plant and Equipment(Net PPE) was ₩136,232 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,791 Mil.
Selling, General, & Admin. Expense(SGA) was ₩3,285 Mil.
Total Current Liabilities was ₩48,635 Mil.
Long-Term Debt & Capital Lease Obligation was ₩31,508 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)
	=	(15194.794 / 167869.09)	/	(17831.296 / 131987.311)
	=	0.090516	/	0.135099
	=	0.67

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)
	=	(18928.541 / 131987.311)	/	(24754.686 / 167869.09)
	=	0.143412	/	0.147464
	=	0.9725

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 - (61838.049 + 136133.011) / 204358.039)	/	(1 - (48312.095 + 136232.265) / 190182.979)
	=	0.031254	/	0.029648
	=	1.0542

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
	=	167869.09	/	131987.311
	=	1.2719

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))
	=	(1790.66 / (1790.66 + 136232.265))	/	(2057.147 / (2057.147 + 136133.011))
	=	0.012974	/	0.014886
	=	0.8716

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)
	=	(3775.874 / 167869.09)	/	(3284.857 / 131987.311)
	=	0.022493	/	0.024888
	=	0.9038

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)
	=	((27929.049 + 57855.817) / 204358.039)	/	((31508.45 + 48635.116) / 190182.979)
	=	0.419777	/	0.421402
	=	0.9961

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
	=	(10787.516 - 0	-	23944.357)	/	204358.039
	=	-0.064381

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.

Oriental Precision & Engineering Co has a M-score of -2.83 suggests that the company is unlikely to be a manipulator.

Oriental Precision & Engineering Co Beneish M-Score Related Terms

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Oriental Precision & Engineering Co (XKRX:014940) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Oriental Precision & Engineering Co Ltd (XKRX:014940) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1614-1 Songjeong-dong, Gangseo-gu, Busan, KOR

Website

http://eng.opco.co.kr

Oriental Precision & Engineering Co Ltd engages in the manufacture machineries and equipment for ships. It products include lifting appliances, engine room crane,engine room casings, funnels, and hull blocks; and machineries, such as deck, hose handling, provision, knuckle, electric slewing, monorail, offshore, jib, and gantry cranes, life saving appliances, deck machinery, deck house, engine room casing, funnel, and living quarter.

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