Klon (WAR:KLN) Beneish M-Score : -2.17 (As of May. 17, 2024)

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What is Klon 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 -2.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAR:KLN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37 Med: -2.52 Max: 4.82
Current: -2.17

During the past 13 years, the highest Beneish M-Score of Klon was 4.82. The lowest was -3.37. And the median was -2.52.

Klon Beneish M-Score Historical Data

The historical data trend for Klon'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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Klon Beneish M-Score Chart

Klon Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.79

-2.33

-2.87

-2.20

-2.07

Klon Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-2.92	-2.07	-2.85	-1.97	-2.17

Competitive Comparison of Klon's Beneish M-Score

For the Lumber & Wood Production subindustry, Klon'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.

Klon's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Klon's Beneish M-Score distribution charts can be found below:

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

Klon 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 Klon 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 * 1.1895

0.528 * 0.7948

0.404 * 0.9646

0.892 * 0.8467

0.115 * 1.4561

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.65

4.679 * 0.064056

0.327 * 1.0417

-2.17

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was zł3.98 Mil.
Revenue was 4.559 + 6.021 + 6.861 + 6.649 = zł24.09 Mil.
Gross Profit was 2.315 + 3.149 + 2.814 + 2.879 = zł11.16 Mil.
Total Current Assets was zł10.64 Mil.
Total Assets was zł20.69 Mil.
Property, Plant and Equipment(Net PPE) was zł9.98 Mil.
Depreciation, Depletion and Amortization(DDA) was zł1.97 Mil.
Selling, General, & Admin. Expense(SGA) was zł2.35 Mil.
Total Current Liabilities was zł3.91 Mil.
Long-Term Debt & Capital Lease Obligation was zł8.24 Mil.
Net Income was -0.053 + -0.101 + 0.195 + -0.023 = zł0.02 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.00 Mil.
Cash Flow from Operations was 0.88 + -2.206 + 1.681 + -1.662 = zł-1.31 Mil.

Total Receivables was zł3.95 Mil.
Revenue was 6.098 + 8.182 + 7.415 + 6.758 = zł28.45 Mil.
Gross Profit was 2.41 + 2.872 + 2.42 + 2.772 = zł10.47 Mil.
Total Current Assets was zł10.91 Mil.
Total Assets was zł19.95 Mil.
Property, Plant and Equipment(Net PPE) was zł8.98 Mil.
Depreciation, Depletion and Amortization(DDA) was zł2.83 Mil.
Selling, General, & Admin. Expense(SGA) was zł4.26 Mil.
Total Current Liabilities was zł4.98 Mil.
Long-Term Debt & Capital Lease Obligation was zł6.27 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)
	=	(3.978 / 24.09)	/	(3.95 / 28.453)
	=	0.165131	/	0.138825
	=	1.1895

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)
	=	(10.474 / 28.453)	/	(11.157 / 24.09)
	=	0.368116	/	0.463138
	=	0.7948

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 - (10.644 + 9.983) / 20.685)	/	(1 - (10.91 + 8.981) / 19.949)
	=	0.002804	/	0.002907
	=	0.9646

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
	=	24.09	/	28.453
	=	0.8467

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))
	=	(2.831 / (2.831 + 8.981))	/	(1.967 / (1.967 + 9.983))
	=	0.239672	/	0.164603
	=	1.4561

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)
	=	(2.346 / 24.09)	/	(4.263 / 28.453)
	=	0.097385	/	0.149826
	=	0.65

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)
	=	((8.242 + 3.907) / 20.685)	/	((6.273 + 4.975) / 19.949)
	=	0.587334	/	0.563838
	=	1.0417

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
	=	(0.018 - 0	-	-1.307)	/	20.685
	=	0.064056

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.

Klon has a M-score of -2.17 suggests that the company is unlikely to be a manipulator.

Klon Beneish M-Score Related Terms

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Klon (WAR:KLN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Klon SA (WAR:KLN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Nowa Swieta 78, Zlotow, POL, 77-400

Website

http://www.klon.net.pl

Klon SA is engaged in producing and supplying beech, oak, birch and alder non-cut off and cut off timber products. The company also provides tri, multilayer and micro-insert deciduous board products and upholstered furniture and carved elements. It sells products in Poland and the rest of the world.

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