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Korn Ferry Beneish M-Score

: -2.35 (As of Today)
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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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KFY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.96   Med: -2.49   Max: -0.98
Current: -2.35

During the past 13 years, the highest Beneish M-Score of Korn Ferry was -0.98. The lowest was -4.96. And the median was -2.49.


Korn Ferry Beneish M-Score Historical Data

The historical data trend for Korn Ferry'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.

Korn Ferry Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.46 -2.60 -2.80 -2.64 -2.60

Korn Ferry Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.76 -2.60 -2.26 -2.27 -2.35

Competitive Comparison

For the Staffing & Employment Services subindustry, Korn Ferry'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.

   

Korn Ferry Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Korn Ferry's Beneish M-Score distribution charts can be found below:

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



Korn Ferry 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 Korn Ferry 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 * 0.9308+0.528 * 0.9953+0.404 * 0.9639+0.892 * 1.4454+0.115 * 0.8927
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.928+4.679 * -0.0392-0.327 * 0.9978
=-2.35

* 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 (Jan22) TTM:Last Year (Jan21) TTM:
Accounts Receivable was $603 Mil.
Revenue was 684.956 + 643.398 + 588.098 + 557.394 = $2,474 Mil.
Gross Profit was 649.075 + 615.114 + 563.402 + 533.319 = $2,361 Mil.
Total Current Assets was $1,668 Mil.
Total Assets was $3,336 Mil.
Property, Plant and Equipment(Net PPE) was $286 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General, & Admin. Expense(SGA) was $1,880 Mil.
Total Current Liabilities was $851 Mil.
Long-Term Debt & Capital Lease Obligation was $538 Mil.
Net Income was 84.101 + 75.772 + 74.823 + 66.19 = $301 Mil.
Non Operating Income was -7.277 + 5.066 + 4.447 + 10.82 = $13 Mil.
Cash Flow from Operations was 264.001 + 118.021 + -160.545 + 197.128 = $419 Mil.
Accounts Receivable was $448 Mil.
Revenue was 477.88 + 437.789 + 346.883 + 448.976 = $1,712 Mil.
Gross Profit was 455.332 + 419.538 + 329.828 + 420.954 = $1,626 Mil.
Total Current Assets was $1,316 Mil.
Total Assets was $2,863 Mil.
Property, Plant and Equipment(Net PPE) was $317 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General, & Admin. Expense(SGA) was $1,402 Mil.
Total Current Liabilities was $635 Mil.
Long-Term Debt & Capital Lease Obligation was $559 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(603.346 / 2473.846) / (448.448 / 1711.528)
=0.24388988 / 0.26201616
=0.9308

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)
=(1625.652 / 1711.528) / (2360.91 / 2473.846)
=0.94982495 / 0.95434801
=0.9953

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 - (1667.75 + 286.016) / 3336.096) / (1 - (1315.586 + 316.901) / 2863.467)
=0.41435558 / 0.42989146
=0.9639

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
=2473.846 / 1711.528
=1.4454

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))
=(61.024 / (61.024 + 316.901)) / (63.158 / (63.158 + 286.016))
=0.16147119 / 0.1808783
=0.8927

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)
=(1880.179 / 2473.846) / (1401.671 / 1711.528)
=0.76002265 / 0.81895885
=0.928

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)
=((537.652 + 851.151) / 3336.096) / ((559.285 + 635.41) / 2863.467)
=0.41629587 / 0.41721975
=0.9978

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
=(300.886 - 13.056 - 418.605) / 3336.096
=-0.0392

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.

Korn Ferry has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.


Korn Ferry Beneish M-Score Related Terms

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Korn Ferry Business Description

Korn Ferry logo
Industry
Industrials » Business Services NAICS : 561311 SIC : 7361
Traded in Other Exchanges
Address
1900 Avenue of the Stars, Suite 2600, Los Angeles, CA, USA, 90067
Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The largest of its revenue segments is its advisory segment, which provides consulting services related to organizational structure. The executive search segment provides executive-level talent sourcing. The recruitment process outsourcing and professional search segment provide broad-level talent sourcing and digital segment. The company has operations in North America, Asia-Pacific, Latin America, and other regions.
Executives
Burnison Gary D director, officer: CEO C/O KORN FERRY INTERNATIONAL 800 CENTURY PARK EAST STE 900 LOS ANGELES CA 90067
Gold Christina A director C/O ITT CORPORATION 1133 WESTCHESTER AVENUE WHITE PLAINS NY 10604
Martinez Angel R director C/O TUPPERWARE BRANDS CORP PO BOX 2353 ORLANDO FL 32802-2353
Beneby Doyle N director C/O KORN FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Shaheen George T director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHAHEEN GEORGE T a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Perry Debra J director 515 RIDGEWOOD AVENUE GLEN RIDGE NJ 07028
Leamon Jerry director C/O KORN/FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Robinson Lori Jean director 5875 LANDERBROOK DRIVE SUITE 220 CLEVELAND OH 44124
Rozek Robert P officer: EVP, CFO & CCO 343 STATE STREET ROCHESTER NY 146500211
Mulrooney Byrne K officer: CEO-RPO, Pro. Srch. & Dig. 2050 SPECTRUM BOULEVARD FT. LAUDERDALE FL 33309
Arian Mark officer: CEO of Advisory C/O KORN/FERRY INTERNATIONAL 1900 AVE. OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Lauer Len J director 2001 EDMUND HALLEY DRIVE RESTON VA 20191
Floyd William R director ONE THOUSAND BEVERLY WAY FORT SMITH AR 72919
Kaye Stephen D officer: CEO of Hay Group C/O KORN FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Hg (bermuda) Ltd 10 percent owner SE PEARMAN BUILDING, 3RD FLOOR 9 PAR-LA-VILLE ROAD HAMILTON D0 HM 08

Korn Ferry Headlines

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