LG Display Co (LG Display Co) Beneish M-Score : -5.80 (As of Apr. 26, 2024)

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What is LG Display 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 -5.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LPL' s Beneish M-Score Range Over the Past 10 Years
Min: -31.29 Med: -2.86 Max: -1.95
Current: -5.8

During the past 13 years, the highest Beneish M-Score of LG Display Co was -1.95. The lowest was -31.29. And the median was -2.86.

LG Display Co Beneish M-Score Historical Data

The historical data trend for LG Display 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.

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LG Display Co Beneish M-Score Chart

LG Display Co Annual Data

Trend

Dec14

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Dec17

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Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.45

-2.80

-3.03

-1.95

LG Display Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.95	-31.29	-6.55	-5.80	-

Competitive Comparison of LG Display Co's Beneish M-Score

For the Consumer Electronics subindustry, LG Display 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.

LG Display Co's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, LG Display Co's Beneish M-Score distribution charts can be found below:

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

LG Display 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 LG Display 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 * 1.0661

0.528 * -3.6301

0.404 * 1.1653

0.892 * 0.7399

0.115 * 1.091

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1776

4.679 * -0.157083

0.327 * 1.1342

-5.83

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $1,980 Mil.
Revenue was 3586.534 + 3652.778 + 3377.49 + 5644.587 = $16,261 Mil.
Gross Profit was 27.979 + -133.067 + -293.591 + -15.519 = $-414 Mil.
Total Current Assets was $7,874 Mil.
Total Assets was $28,134 Mil.
Property, Plant and Equipment(Net PPE) was $15,704 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,180 Mil.
Selling, General, & Admin. Expense(SGA) was $1,034 Mil.
Total Current Liabilities was $10,912 Mil.
Long-Term Debt & Capital Lease Obligation was $9,076 Mil.
Net Income was -539.654 + -661.495 + -929.374 + -1466.871 = $-3,597 Mil.
Non Operating Income was -133.909 + 102.088 + -198.292 + -675.875 = $-906 Mil.
Cash Flow from Operations was 740.821 + 586.465 + -439.135 + 839.855 = $1,728 Mil.

Total Receivables was $2,510 Mil.
Revenue was 4849.245 + 4389.614 + 5300.838 + 7438.645 = $21,978 Mil.
Gross Profit was 36.357 + 215.729 + 669.875 + 1110.225 = $2,032 Mil.
Total Current Assets was $8,435 Mil.
Total Assets was $28,742 Mil.
Property, Plant and Equipment(Net PPE) was $16,313 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,672 Mil.
Selling, General, & Admin. Expense(SGA) was $1,187 Mil.
Total Current Liabilities was $10,716 Mil.
Long-Term Debt & Capital Lease Obligation was $7,288 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)
	=	(1979.942 / 16261.389)	/	(2510.056 / 21978.342)
	=	0.121757	/	0.114206
	=	1.0661

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)
	=	(2032.186 / 21978.342)	/	(-414.198 / 16261.389)
	=	0.092463	/	-0.025471
	=	-3.6301

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 - (7874.383 + 15704.346) / 28134.231)	/	(1 - (8435.139 + 16312.885) / 28741.57)
	=	0.16192	/	0.138947
	=	1.1653

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
	=	16261.389	/	21978.342
	=	0.7399

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))
	=	(3671.672 / (3671.672 + 16312.885))	/	(3180.133 / (3180.133 + 15704.346))
	=	0.183725	/	0.168399
	=	1.091

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)
	=	(1034.079 / 16261.389)	/	(1186.879 / 21978.342)
	=	0.063591	/	0.054002
	=	1.1776

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)
	=	((9076.319 + 10912.444) / 28134.231)	/	((7288.155 + 10715.577) / 28741.57)
	=	0.710478	/	0.6264
	=	1.1342

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
	=	(-3597.394 - -905.988	-	1728.006)	/	28134.231
	=	-0.157083

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.

LG Display Co has a M-score of -5.83 suggests that the company is unlikely to be a manipulator.

LG Display Co Beneish M-Score Related Terms

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LG Display Co (LG Display Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » LG Display Co Ltd (NYSE:LPL) » Definitions » Beneish M-Score

Traded in Other Exchanges

034220:Korea LGA:Germany LGA:Austria

Address

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, KOR, 07336

Website

https://www.lgdisplay.com

LG Display is a South Korea-based company that is principally engaged in developing, manufacturing and selling TFT-LCD and OLED display panels. The company's products consist of panels for notebook computers, monitors, televisions, smartphones, tablets, and others. The company conducts direct sales through overseas subsidiaries in a number of countries, including the United States, Germany, Japan, Taiwan, China, and Singapore. These subsidiaries conduct sales activities and offer technical support to clients. The company generates the majority of its revenue from overseas markets, with the rest from South Korea.