Taekwang Industrial Co (XKRX:003240) Beneish M-Score : -2.99 (As of Apr. 18, 2025)

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What is Taekwang Industrial 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.

Good Sign:

Beneish M-Score -2.99 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:003240' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.56 Max: 0.28
Current: -2.99

During the past 13 years, the highest Beneish M-Score of Taekwang Industrial Co was 0.28. The lowest was -3.02. And the median was -2.56.

Taekwang Industrial Co Beneish M-Score Historical Data

The historical data trend for Taekwang Industrial 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.

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Taekwang Industrial Co Beneish M-Score Chart

Taekwang Industrial Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.54

-2.07

0.28

-2.65

-2.99

Taekwang Industrial Co 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															-2.65	-2.97	-2.78	-2.75	-2.99

Competitive Comparison of Taekwang Industrial Co's Beneish M-Score

For the Chemicals subindustry, Taekwang Industrial 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.

Taekwang Industrial Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Taekwang Industrial Co's Beneish M-Score distribution charts can be found below:

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

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Taekwang Industrial 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 Taekwang Industrial Co 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 * 0.9055

0.528 * 0.545

0.404 * 0.6061

0.892 * 0.9366

0.115 * 1.559

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1925

4.679 * -0.003004

0.327 * 0.9462

-2.99

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ₩363,341 Mil.
Revenue was 486461.419 + 526448.374 + 554560.914 + 554392.629 = ₩2,121,863 Mil.
Gross Profit was 44893.829 + 33630.839 + 59599.19 + 40453.181 = ₩178,577 Mil.
Total Current Assets was ₩2,769,289 Mil.
Total Assets was ₩4,722,278 Mil.
Property, Plant and Equipment(Net PPE) was ₩485,739 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩42,872 Mil.
Selling, General, & Admin. Expense(SGA) was ₩152,024 Mil.
Total Current Liabilities was ₩402,530 Mil.
Long-Term Debt & Capital Lease Obligation was ₩7,121 Mil.
Net Income was 114607.546 + 12740.969 + 48463.183 + 38719.487 = ₩214,531 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 119968.451 + 37944.792 + 54645.385 + 16160.073 = ₩228,719 Mil.

Total Receivables was ₩428,441 Mil.
Revenue was 532313.58 + 578541.398 + 574506.483 + 580128.458 = ₩2,265,490 Mil.
Gross Profit was -14473.158 + 47486.157 + 39995.076 + 30903.488 = ₩103,912 Mil.
Total Current Assets was ₩1,852,915 Mil.
Total Assets was ₩4,738,292 Mil.
Property, Plant and Equipment(Net PPE) was ₩456,472 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩66,068 Mil.
Selling, General, & Admin. Expense(SGA) was ₩136,113 Mil.
Total Current Liabilities was ₩420,550 Mil.
Long-Term Debt & Capital Lease Obligation was ₩13,844 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)
	=	(363341.349 / 2121863.336)	/	(428441.355 / 2265489.919)
	=	0.171237	/	0.189116
	=	0.9055

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)
	=	(103911.563 / 2265489.919)	/	(178577.039 / 2121863.336)
	=	0.045867	/	0.08416
	=	0.545

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 - (2769289.38 + 485739.391) / 4722277.801)	/	(1 - (1852914.832 + 456472.261) / 4738292.443)
	=	0.310708	/	0.512612
	=	0.6061

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
	=	2121863.336	/	2265489.919
	=	0.9366

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))
	=	(66068.345 / (66068.345 + 456472.261))	/	(42871.603 / (42871.603 + 485739.391))
	=	0.126437	/	0.081102
	=	1.559

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)
	=	(152023.67 / 2121863.336)	/	(136112.638 / 2265489.919)
	=	0.071646	/	0.060081
	=	1.1925

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)
	=	((7120.864 + 402529.646) / 4722277.801)	/	((13844.117 + 420549.694) / 4738292.443)
	=	0.086748	/	0.091677
	=	0.9462

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
	=	(214531.185 - 0	-	228718.701)	/	4722277.801
	=	-0.003004

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.

Taekwang Industrial Co has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.

Taekwang Industrial Co Beneish M-Score Related Terms

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Taekwang Industrial Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Taekwang Industrial Co Ltd (XKRX:003240) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

162-1 Jangchung-dong 2-Ga, Jung-gu, Seoul, KOR, 100-392

Website

http://www.taekwang.co.kr

Taekwang Industrial Co Ltd functions basically in the oil & gas industry in Korea. Its scope of business includes petrochemical products, fibers, and textiles. Its petrochemicals include purified terephthalic acid (PTA), propylene, acrylonitrile, sodium cyanide. The company's fiber products derived from its chemicals include acrylic fibers, nylons, spandex, spun yarns, worsted fabrics, cotton fabrics. Apart from its core business, the company also ventures into property renting and broadcast communication businesses.

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