GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Daewoong Co Ltd (XKRX:003090) » Definitions » Beneish M-Score

Daewoong Co (XKRX:003090) Beneish M-Score : -1.66 (As of Dec. 13, 2024)


View and export this data going back to 1973. Start your Free Trial

What is Daewoong 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.

Warning Sign:

Beneish M-Score -1.66 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XKRX:003090' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Med: -2.5   Max: 0.75
Current: -1.66

During the past 13 years, the highest Beneish M-Score of Daewoong Co was 0.75. The lowest was -3.03. And the median was -2.50.


Daewoong Co Beneish M-Score Historical Data

The historical data trend for Daewoong 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.

* Premium members only.

Daewoong Co Beneish M-Score Chart

Daewoong Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.46 -2.73 -2.54 -2.39 -1.82

Daewoong Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.72 -1.82 -1.92 -1.70 -1.66

Competitive Comparison of Daewoong Co's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Daewoong 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.


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

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

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



Daewoong 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 Daewoong 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 * 1.0304+0.528 * 2.1361+0.404 * 1.0384+0.892 * 1.0377+0.115 * 1.227
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * -0.0968+4.679 * -0.008168-0.327 * 1.1068
=-1.66

* 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 ₩238,668 Mil.
Revenue was 515874.594 + 473290.46 + 443860.722 + 447044.852 = ₩1,880,071 Mil.
Gross Profit was 515874.594 + 257391.612 + 234673.962 + -435549.523 = ₩572,391 Mil.
Total Current Assets was ₩900,646 Mil.
Total Assets was ₩2,653,798 Mil.
Property, Plant and Equipment(Net PPE) was ₩903,376 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩57,389 Mil.
Selling, General, & Admin. Expense(SGA) was ₩-60,877 Mil.
Total Current Liabilities was ₩609,904 Mil.
Long-Term Debt & Capital Lease Obligation was ₩339,605 Mil.
Net Income was 44471.713 + 19979.808 + 21104.385 + 37803.904 = ₩123,360 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 52332.317 + 16089.29 + 38241.294 + 38373.764 = ₩145,037 Mil.
Total Receivables was ₩223,215 Mil.
Revenue was 461517.518 + 469420.624 + 435858.469 + 444926.708 = ₩1,811,723 Mil.
Gross Profit was 461517.518 + 255038.151 + 225589.896 + 236083.262 = ₩1,178,229 Mil.
Total Current Assets was ₩920,365 Mil.
Total Assets was ₩2,287,891 Mil.
Property, Plant and Equipment(Net PPE) was ₩661,992 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩52,354 Mil.
Selling, General, & Admin. Expense(SGA) was ₩606,056 Mil.
Total Current Liabilities was ₩687,203 Mil.
Long-Term Debt & Capital Lease Obligation was ₩52,378 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)
=(238668.401 / 1880070.628) / (223215.105 / 1811723.319)
=0.126947 / 0.123206
=1.0304

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)
=(1178228.827 / 1811723.319) / (572390.645 / 1880070.628)
=0.650336 / 0.304452
=2.1361

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 - (900646.461 + 903376.029) / 2653797.902) / (1 - (920364.793 + 661992.055) / 2287891.085)
=0.320211 / 0.308378
=1.0384

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
=1880070.628 / 1811723.319
=1.0377

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))
=(52354.472 / (52354.472 + 661992.055)) / (57389.181 / (57389.181 + 903376.029))
=0.07329 / 0.059733
=1.227

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)
=(-60876.66 / 1880070.628) / (606056.126 / 1811723.319)
=-0.03238 / 0.334519
=-0.0968

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)
=((339605.11 + 609903.914) / 2653797.902) / ((52377.877 + 687202.657) / 2287891.085)
=0.357793 / 0.323259
=1.1068

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
=(123359.81 - 0 - 145036.665) / 2653797.902
=-0.008168

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.

Daewoong Co has a M-score of -1.66 signals that the company is likely to be a manipulator.


Daewoong Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Daewoong Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Daewoong Co Business Description

Traded in Other Exchanges
N/A
Address
244, Galmachi-ro, Jungwon-gu, Gyeonggi-do, Seongnam-si, KOR
Daewoong Co Ltd is a Korea-based holding company engaged in the manufacture of pharmaceuticals. Also, it is engaged in the food processing business, provides enterprise education solutions and information technology business solutions.

Daewoong Co Headlines

No Headlines