Korn Ferry Beneish M-Score

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:

* 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.

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.

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.

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.

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.

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.

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.

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

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

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

Industry

Industrials » Business Services NAICS : 561311 SIC : 7361

Comparable Companies

NYSE:NSP NAS:JOBS NYSE:ZIP TSE:2412 TSE:6028 LSE:HAS NAS:UPWK NYSE:MAN TSE:2181 ASX:APM

Traded in Other Exchanges

KFY:Mexico KFY:Germany

Address

1900 Avenue of the Stars, Suite 2600, Los Angeles, CA, USA, 90067

Website

https://www.kornferry.com

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