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KB (KB Financial Group) Beneish M-Score : -2.28 (As of Jun. 17, 2025)


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What is KB Financial Group Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Med: -2.38   Max: 1669.51
Current: -2.28

During the past 13 years, the highest Beneish M-Score of KB Financial Group was 1669.51. The lowest was -3.51. And the median was -2.38.


KB Financial Group 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 KB Financial Group 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 * 1.1532+0.528 * 1+0.404 * 1.0002+0.892 * 0.9477+0.115 * 0.9929
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0155+4.679 * 0.003881-0.327 * 0.9826
=-2.37

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was $226 Mil.
Revenue was 3274.05 + 3315.365 + 3841.161 + 3433.383 = $13,864 Mil.
Gross Profit was 3274.05 + 3315.365 + 3841.161 + 3433.383 = $13,864 Mil.
Total Current Assets was $0 Mil.
Total Assets was $528,220 Mil.
Property, Plant and Equipment(Net PPE) was $3,720 Mil.
Depreciation, Depletion and Amortization(DDA) was $627 Mil.
Selling, General, & Admin. Expense(SGA) was $4,558 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $86,431 Mil.
Net Income was 1163.834 + 474.259 + 1212.856 + 1256.087 = $4,107 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2056.802 + 0 + 0 + 0 = $2,057 Mil.
Total Receivables was $206 Mil.
Revenue was 3724.396 + 3792.863 + 3447.001 + 3665.554 = $14,630 Mil.
Gross Profit was 3724.396 + 3792.863 + 3447.001 + 3665.554 = $14,630 Mil.
Total Current Assets was $0 Mil.
Total Assets was $549,864 Mil.
Property, Plant and Equipment(Net PPE) was $3,988 Mil.
Depreciation, Depletion and Amortization(DDA) was $666 Mil.
Selling, General, & Admin. Expense(SGA) was $4,736 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $91,563 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)
=(225.588 / 13863.959) / (206.432 / 14629.814)
=0.016272 / 0.01411
=1.1532

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)
=(14629.814 / 14629.814) / (13863.959 / 13863.959)
=1 / 1
=1

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 - (0 + 3719.829) / 528220.024) / (1 - (0 + 3987.689) / 549864.022)
=0.992958 / 0.992748
=1.0002

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
=13863.959 / 14629.814
=0.9477

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))
=(666.327 / (666.327 + 3987.689)) / (626.727 / (626.727 + 3719.829))
=0.143172 / 0.144189
=0.9929

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)
=(4557.933 / 13863.959) / (4736.139 / 14629.814)
=0.328761 / 0.323732
=1.0155

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)
=((86431.46 + 0) / 528220.024) / ((91563.428 + 0) / 549864.022)
=0.163628 / 0.16652
=0.9826

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
=(4107.036 - 0 - 2056.802) / 528220.024
=0.003881

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.

KB Financial Group has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.


KB Financial Group Beneish M-Score Related Terms

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KB Financial Group Business Description

Address
26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul, KOR, 07331
KB Financial Group Inc. is a financial holding company in Korea. The company operations include Kookmin Bank, one of the commercial banks in Korea. The company's subsidiaries collectively engage in a broad range of businesses, including commercial banking, credit cards, asset management, non-life and life insurance, capital markets activities, and international banking and finance. The company's segments include the Banking business, Securities business, Non-life Insurance business, Credit card business, and Life Insurance business. The Group generates the majority of its revenue from the Banking business.