Hanwha General Insurance 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 Hanwha General Insurance Co 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 * 1.2083 | + | 0.528 * 1 | + | 0.404 * 0.9996 | + | 0.892 * 1.0913 | + | 0.115 * 0.9715 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1837 | + | 4.679 * -0.09614 | - | 0.327 * 0.395 |
| = | -2.49 |
* 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 (Jun24) TTM: | Last Year (Jun23) TTM: |
Total Receivables was ₩184,971 Mil.
Revenue was 1356393.414 + 1331166.451 + 1295192.574 + 1252917.678 = ₩5,235,670 Mil.
Gross Profit was 1356393.414 + 1331166.451 + 1295192.574 + 1252917.678 = ₩5,235,670 Mil.
Total Current Assets was ₩0 Mil.
Total Assets was ₩18,454,077 Mil.
Property, Plant and Equipment(Net PPE) was ₩423,396 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩88,369 Mil.
Selling, General, & Admin. Expense(SGA) was ₩1,092,031 Mil.
Total Current Liabilities was ₩0 Mil.
Long-Term Debt & Capital Lease Obligation was ₩249,299 Mil.
Net Income was 122317.724 + 114932.713 + 13492.816 + 42758.382 = ₩293,502 Mil.
Non Operating Income was 97045.158 + 115976.893 + -1728.998 + 68867.147 = ₩280,160 Mil.
Cash Flow from Operations was 548556.432 + 147818.381 + 583771.617 + 507373.877 = ₩1,787,520 Mil.
|
Total Receivables was ₩140,275 Mil.
Revenue was 1245781.67 + 1232559.254 + 1141979.315 + 1177424.72 = ₩4,797,745 Mil.
Gross Profit was 1245781.67 + 1232559.254 + 1141979.315 + 1177424.72 = ₩4,797,745 Mil.
Total Current Assets was ₩0 Mil.
Total Assets was ₩17,516,928 Mil.
Property, Plant and Equipment(Net PPE) was ₩394,646 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩79,544 Mil.
Selling, General, & Admin. Expense(SGA) was ₩845,357 Mil.
Total Current Liabilities was ₩0 Mil.
Long-Term Debt & Capital Lease Obligation was ₩599,136 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) |
| = | (184970.824 / 5235670.117) | / | (140275.359 / 4797744.959) |
| = | 0.035329 | / | 0.029238 |
| | = | 1.2083 |
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) |
| = | (4797744.959 / 4797744.959) | / | (5235670.117 / 5235670.117) |
| = | 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 + 423396.435) / 18454077.384) | / | (1 - (0 + 394646.488) / 17516927.627) |
| = | 0.977057 | / | 0.977471 |
| | = | 0.9996 |
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 |
| = | 5235670.117 | / | 4797744.959 |
| | = | 1.0913 |
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)) |
| = | (79544.394 / (79544.394 + 394646.488)) | / | (88369.452 / (88369.452 + 423396.435)) |
| = | 0.167748 | / | 0.172676 |
| | = | 0.9715 |
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) |
| = | (1092030.839 / 5235670.117) | / | (845356.881 / 4797744.959) |
| = | 0.208575 | / | 0.176199 |
| | = | 1.1837 |
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) |
| = | ((249298.549 + 0) / 18454077.384) | / | ((599136.49 + 0) / 17516927.627) |
| = | 0.013509 | / | 0.034203 |
| | = | 0.395 |
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 |
| = | (293501.635 - 280160.2 | - | 1787520.307) | / | 18454077.384 |
| | = | -0.09614 |
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.
Hanwha General Insurance Co has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XKRX:000370 has been successfully added to your