Handok (XKRX:002390) Beneish M-Score : -2.88 (As of Mar. 25, 2025)

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What is Handok 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:002390' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.59 Max: -2.16
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Handok was -2.16. The lowest was -2.91. And the median was -2.59.

Handok Beneish M-Score Historical Data

The historical data trend for Handok'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.

* Premium members only.

Handok Beneish M-Score Chart

Handok Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.33

-2.66

-2.62

-2.91

-2.88

Handok Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.91	-2.71	-2.81	-2.51	-2.88

Competitive Comparison of Handok's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Handok'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.

Handok's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Handok's Beneish M-Score distribution charts can be found below:

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

Handok 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 Handok 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 * 1.0149

0.528 * 1.0257

0.404 * 0.8955

0.892 * 0.9706

0.115 * 0.9392

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0788

4.679 * -0.063122

0.327 * 1.1408

-2.88

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ₩164,901 Mil.
Revenue was 121284.946 + 129042.926 + 128250.651 + 128779.807 = ₩507,358 Mil.
Gross Profit was 35994.959 + 36316.905 + 41612.196 + 43489.86 = ₩157,414 Mil.
Total Current Assets was ₩327,554 Mil.
Total Assets was ₩788,555 Mil.
Property, Plant and Equipment(Net PPE) was ₩219,259 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩23,540 Mil.
Selling, General, & Admin. Expense(SGA) was ₩63,854 Mil.
Total Current Liabilities was ₩340,996 Mil.
Long-Term Debt & Capital Lease Obligation was ₩144,148 Mil.
Net Income was -33442.339 + -3987.559 + -12881.687 + -2251.177 = ₩-52,563 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 16658.716 + -7112.023 + -12735.343 + 401.078 = ₩-2,788 Mil.

Total Receivables was ₩167,399 Mil.
Revenue was 126586.664 + 127229.971 + 140551.845 + 128372.599 = ₩522,741 Mil.
Gross Profit was 36675.864 + 41747.439 + 46552.839 + 41371.522 = ₩166,348 Mil.
Total Current Assets was ₩295,290 Mil.
Total Assets was ₩790,340 Mil.
Property, Plant and Equipment(Net PPE) was ₩224,473 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩22,488 Mil.
Selling, General, & Admin. Expense(SGA) was ₩60,983 Mil.
Total Current Liabilities was ₩301,468 Mil.
Long-Term Debt & Capital Lease Obligation was ₩124,758 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)
	=	(164901.428 / 507358.33)	/	(167399.058 / 522741.079)
	=	0.32502	/	0.320233
	=	1.0149

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)
	=	(166347.664 / 522741.079)	/	(157413.92 / 507358.33)
	=	0.318222	/	0.310262
	=	1.0257

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 - (327554.128 + 219258.834) / 788555.007)	/	(1 - (295289.892 + 224473.474) / 790339.658)
	=	0.306563	/	0.342354
	=	0.8955

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
	=	507358.33	/	522741.079
	=	0.9706

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))
	=	(22488.264 / (22488.264 + 224473.474))	/	(23540.019 / (23540.019 + 219258.834))
	=	0.09106	/	0.096953
	=	0.9392

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)
	=	(63853.932 / 507358.33)	/	(60983.025 / 522741.079)
	=	0.125856	/	0.11666
	=	1.0788

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)
	=	((144148.008 + 340995.943) / 788555.007)	/	((124758.119 + 301467.892) / 790339.658)
	=	0.615232	/	0.539295
	=	1.1408

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
	=	(-52562.762 - 0	-	-2787.572)	/	788555.007
	=	-0.063122

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.

Handok has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.

Handok Beneish M-Score Related Terms

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Handok Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Handok Inc (XKRX:002390) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

132 Teheran Street, Gangnam-gu, Seoul, KOR, 06235

Website

http://www.handok.co.kr

Handok Inc is engaged in the healthcare sector. It is one of the leading pharmaceutical companies in Korea involved in the development of prescription drugs and OTC drugs, medical devices and in-vitro diagnostics. Its products address major diseases such as diabetes, hypertension and cardiovascular diseases.

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