HYHZF (Korea Shipbuilding & Offshore Engineering) Beneish M-Score : -2.84 (As of Sep. 21, 2024)

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What is Korea Shipbuilding & Offshore Engineering 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 -2.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Korea Shipbuilding & Offshore Engineering's Beneish M-Score or its related term are showing as below:

HYHZF' s Beneish M-Score Range Over the Past 10 Years
Min: -7.58 Med: -2.93 Max: 0.41
Current: -2.84

During the past 13 years, the highest Beneish M-Score of Korea Shipbuilding & Offshore Engineering was 0.41. The lowest was -7.58. And the median was -2.93.

Korea Shipbuilding & Offshore Engineering Beneish M-Score Historical Data

The historical data trend for Korea Shipbuilding & Offshore Engineering'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.

Korea Shipbuilding & Offshore Engineering Beneish M-Score Chart

Korea Shipbuilding & Offshore Engineering Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.19

-2.58

-3.95

-3.78

-2.91

Korea Shipbuilding & Offshore Engineering Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-3.34	-3.47	-2.91	-2.70	-2.84

Competitive Comparison of Korea Shipbuilding & Offshore Engineering's Beneish M-Score

For the Aerospace & Defense subindustry, Korea Shipbuilding & Offshore Engineering'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.

Korea Shipbuilding & Offshore Engineering's Beneish M-Score Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where Korea Shipbuilding & Offshore Engineering's Beneish M-Score falls into.

Korea Shipbuilding & Offshore Engineering 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 Korea Shipbuilding & Offshore Engineering 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 * 1.1098

0.528 * 0.788

0.404 * 1.0251

0.892 * 1.1691

0.115 * 0.896

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7779

4.679 * -0.069302

0.327 * 0.9802

-2.62

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was $754 Mil.
Revenue was 4797.122 + 4141.87 + 4591.403 + 3755.859 = $17,286 Mil.
Gross Profit was 514.262 + 262.79 + 202.843 + 222.558 = $1,202 Mil.
Total Current Assets was $13,232 Mil.
Total Assets was $24,035 Mil.
Property, Plant and Equipment(Net PPE) was $7,818 Mil.
Depreciation, Depletion and Amortization(DDA) was $369 Mil.
Selling, General, & Admin. Expense(SGA) was $264 Mil.
Total Current Liabilities was $12,619 Mil.
Long-Term Debt & Capital Lease Obligation was $1,046 Mil.
Net Income was 211.834 + 141.887 + -19.374 + 252.575 = $587 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1106.599 + 567.403 + -129.46 + 708.057 = $2,253 Mil.

Total Receivables was $581 Mil.
Revenue was 4203.996 + 3707.733 + 3819.892 + 3053.923 = $14,786 Mil.
Gross Profit was 217.945 + 156.021 + 142.458 + 294.004 = $810 Mil.
Total Current Assets was $13,398 Mil.
Total Assets was $24,388 Mil.
Property, Plant and Equipment(Net PPE) was $8,035 Mil.
Depreciation, Depletion and Amortization(DDA) was $338 Mil.
Selling, General, & Admin. Expense(SGA) was $290 Mil.
Total Current Liabilities was $12,630 Mil.
Long-Term Debt & Capital Lease Obligation was $1,516 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)
	=	(753.913 / 17286.254)	/	(581.021 / 14785.544)
	=	0.043613	/	0.039297
	=	1.1098

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)
	=	(810.428 / 14785.544)	/	(1202.453 / 17286.254)
	=	0.054812	/	0.069561
	=	0.788

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 - (13231.874 + 7818.183) / 24034.971)	/	(1 - (13398.416 + 8034.692) / 24387.701)
	=	0.12419	/	0.121151
	=	1.0251

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
	=	17286.254	/	14785.544
	=	1.1691

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))
	=	(337.765 / (337.765 + 8034.692))	/	(368.623 / (368.623 + 7818.183))
	=	0.040342	/	0.045026
	=	0.896

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)
	=	(263.797 / 17286.254)	/	(290.061 / 14785.544)
	=	0.015261	/	0.019618
	=	0.7779

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)
	=	((1046.173 + 12618.888) / 24034.971)	/	((1515.56 + 12629.56) / 24387.701)
	=	0.568549	/	0.58001
	=	0.9802

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
	=	(586.922 - 0	-	2252.599)	/	24034.971
	=	-0.069302

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.

Korea Shipbuilding & Offshore Engineering has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.

Korea Shipbuilding & Offshore Engineering Beneish M-Score Related Terms

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Korea Shipbuilding & Offshore Engineering Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Korea Shipbuilding & Offshore Engineering (GREY:HYHZF) » Definitions » Beneish M-Score

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Traded in Other Exchanges

009540:Korea

Address

75, Yulgok-ro, Jongno-gu, Seoul, KOR, 03058

Website

http://www.ksoe.co.kr

HD Korea Shipbuilding & Offshore Engineering is one of the largest shipbuilding companies in the world. It has the capability to build various types of ships, including submarines, naval ships, and auxiliary service vessels. The company is an industrial conglomerate, and operates several business divisions including Shipbuilding, Offshore & Industrial Plant Engineering, Special & Naval Shipbuilding, Marine Engine & Machinery and Industrial Machinery & Energy.