Daekyo Co (XKRX:019685) Beneish M-Score : -2.88 (As of May. 25, 2024)

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What is Daekyo 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:019685' s Beneish M-Score Range Over the Past 10 Years
Min: -3.89 Med: -2.77 Max: -2.31
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Daekyo Co was -2.31. The lowest was -3.89. And the median was -2.77.

Daekyo Co Beneish M-Score Historical Data

The historical data trend for Daekyo 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.

Daekyo Co Beneish M-Score Chart

Daekyo Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.51

-2.43

-2.70

-3.89

-3.18

Daekyo 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															-3.89	-3.85	-2.93	-3.18	-2.88

Competitive Comparison of Daekyo Co's Beneish M-Score

For the Education & Training Services subindustry, Daekyo 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.

Daekyo Co's Beneish M-Score Distribution in the Education Industry

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

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

Daekyo 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 Daekyo 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 * 1.439

0.528 * 0.9223

0.404 * 0.9417

0.892 * 0.9577

0.115 * 1.1024

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8998

4.679 * -0.149257

0.327 * 1.0937

-2.88

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩42,010 Mil.
Revenue was 165946.842 + 162702.749 + 161540.325 + 164420.189 = ₩654,610 Mil.
Gross Profit was 29982.841 + 24487.974 + 27304.766 + 25803.234 = ₩107,579 Mil.
Total Current Assets was ₩157,412 Mil.
Total Assets was ₩601,842 Mil.
Property, Plant and Equipment(Net PPE) was ₩150,164 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩37,838 Mil.
Selling, General, & Admin. Expense(SGA) was ₩67,380 Mil.
Total Current Liabilities was ₩199,102 Mil.
Long-Term Debt & Capital Lease Obligation was ₩48,418 Mil.
Net Income was 9784.637 + -67376.649 + -9693.797 + -14014.692 = ₩-81,301 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was -2480.686 + 20008.488 + -24277.055 + 15277.632 = ₩8,528 Mil.

Total Receivables was ₩30,486 Mil.
Revenue was 171077.48 + 176358.138 + 170389.221 + 165732.616 = ₩683,557 Mil.
Gross Profit was 31709.197 + 24301.406 + 26056.867 + 21541.401 = ₩103,609 Mil.
Total Current Assets was ₩142,260 Mil.
Total Assets was ₩680,390 Mil.
Property, Plant and Equipment(Net PPE) was ₩184,864 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩52,709 Mil.
Selling, General, & Admin. Expense(SGA) was ₩78,195 Mil.
Total Current Liabilities was ₩196,829 Mil.
Long-Term Debt & Capital Lease Obligation was ₩59,011 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)
	=	(42010.269 / 654610.105)	/	(30485.535 / 683557.455)
	=	0.064176	/	0.044598
	=	1.439

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)
	=	(103608.871 / 683557.455)	/	(107578.815 / 654610.105)
	=	0.151573	/	0.16434
	=	0.9223

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 - (157412.113 + 150164.182) / 601841.782)	/	(1 - (142260.351 + 184863.912) / 680389.94)
	=	0.488942	/	0.519211
	=	0.9417

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
	=	654610.105	/	683557.455
	=	0.9577

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))
	=	(52709 / (52709 + 184863.912))	/	(37838 / (37838 + 150164.182))
	=	0.221865	/	0.201264
	=	1.1024

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)
	=	(67379.547 / 654610.105)	/	(78194.887 / 683557.455)
	=	0.102931	/	0.114394
	=	0.8998

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)
	=	((48417.858 + 199102.044) / 601841.782)	/	((59011.046 + 196828.96) / 680389.94)
	=	0.411271	/	0.37602
	=	1.0937

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
	=	(-81300.501 - 0	-	8528.379)	/	601841.782
	=	-0.149257

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.

Daekyo Co has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.

Daekyo Co Beneish M-Score Related Terms

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Daekyo Co (XKRX:019685) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Daekyo Co Ltd (XKRX:019685) » Definitions » Beneish M-Score

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Traded in Other Exchanges

019680:Korea

Address

Noonnopi Seocho Center, 446-3, Bangbae-Dong, Seocho-Gu, Seoul, KOR, 137-818

Website

http://eng.daekyo.com

Daekyo Co Ltd is a Korean education company that provides services such as learning centers, educational materials, media programs, and international programs. The company's largest segment is its Noonnoppi brand of learning centers and self-learning systems. This segment offers on-site learning centers for children as well as home tutoring and virtual learning programs. The majority of students that subscribe to Noonnoppi programs are elementary and middle/high school students, followed by adult learners. Daekyo also operates over 10 international subsidiaries the U.S. and in 21 countries across Asia.

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