Hanyang Securities 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 Hanyang Securities 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 | + | 0.528 * 1 | + | 0.404 * 1.0017 | + | 0.892 * 1.2592 | + | 0.115 * 1.032 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8398 | + | 4.679 * 0.404592 | - | 0.327 * 0.6606 |
| = | -0.21 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was ₩0.00 Mil.
Revenue was 42413.152 + 48335.213 + 51584.726 + 37326.41 = ₩179,659.50 Mil.
Gross Profit was 42413.152 + 48335.213 + 51584.726 + 37326.41 = ₩179,659.50 Mil.
Total Current Assets was ₩0.00 Mil.
Total Assets was ₩5,434,935.25 Mil.
Property, Plant and Equipment(Net PPE) was ₩16,399.27 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩2,823.38 Mil.
Selling, General, & Admin. Expense(SGA) was ₩29,603.22 Mil.
Total Current Liabilities was ₩0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ₩512,106.00 Mil.
Net Income was 7574.059 + 12530.804 + 13367.159 + 7257.871 = ₩40,729.89 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0.00 Mil.
Cash Flow from Operations was -1170476.184 + -464238.317 + -1064256.685 + 540768.403 = ₩-2,158,202.78 Mil.
|
Total Receivables was ₩0.00 Mil.
Revenue was 25108.2 + 47934.301 + 45247.064 + 24388.66 = ₩142,678.23 Mil.
Gross Profit was 25108.2 + 47934.301 + 45247.064 + 24388.66 = ₩142,678.23 Mil.
Total Current Assets was ₩0.00 Mil.
Total Assets was ₩3,560,040.42 Mil.
Property, Plant and Equipment(Net PPE) was ₩16,880.63 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩3,015.93 Mil.
Selling, General, & Admin. Expense(SGA) was ₩27,994.01 Mil.
Total Current Liabilities was ₩0.00 Mil.
Long-Term Debt & Capital Lease Obligation was ₩507,756.96 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) |
| = | (0 / 179659.501) | / | (0 / 142678.225) |
| = | 0 | / | 0 |
| | = | 1 |
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) |
| = | (142678.225 / 142678.225) | / | (179659.501 / 179659.501) |
| = | 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 + 16399.268) / 5434935.251) | / | (1 - (0 + 16880.625) / 3560040.416) |
| = | 0.996983 | / | 0.995258 |
| | = | 1.0017 |
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 |
| = | 179659.501 | / | 142678.225 |
| | = | 1.2592 |
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)) |
| = | (3015.927 / (3015.927 + 16880.625)) | / | (2823.379 / (2823.379 + 16399.268)) |
| = | 0.15158 | / | 0.146878 |
| | = | 1.032 |
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) |
| = | (29603.215 / 179659.501) | / | (27994.01 / 142678.225) |
| = | 0.164774 | / | 0.196204 |
| | = | 0.8398 |
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) |
| = | ((512106.004 + 0) / 5434935.251) | / | ((507756.955 + 0) / 3560040.416) |
| = | 0.094225 | / | 0.142627 |
| | = | 0.6606 |
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 |
| = | (40729.893 - 0 | - | -2158202.783) | / | 5434935.251 |
| | = | 0.404592 |
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.
Hanyang Securities Co has a M-score of -0.21 signals that the company is likely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XKRX:001755.PFD has been successfully added to your