Korean Air Lines Co (XKRX:003490) Beneish M-Score : -2.87 (As of Apr. 28, 2024)

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What is Korean Air Lines 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:003490' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -2.94 Max: -2.25
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Korean Air Lines Co was -2.25. The lowest was -3.27. And the median was -2.94.

Korean Air Lines Co Beneish M-Score Historical Data

The historical data trend for Korean Air Lines 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.

Korean Air Lines Co Beneish M-Score Chart

Korean Air Lines Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.97

-2.25

-2.84

-2.90

-2.87

Korean Air Lines Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.90	-3.06	-3.03	-2.93	-2.87

Competitive Comparison of Korean Air Lines Co's Beneish M-Score

For the Airlines subindustry, Korean Air Lines 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.

Korean Air Lines Co's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Korean Air Lines Co's Beneish M-Score distribution charts can be found below:

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

Korean Air Lines 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 Korean Air Lines 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 * 0.8853

0.528 * 1.3495

0.404 * 0.9028

0.892 * 1.143

0.115 * 1.0173

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5434

4.679 * -0.099741

0.327 * 0.9937

-2.87

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ₩1,121,726 Mil.
Revenue was 4393403.197 + 4249023.719 + 3877336.004 + 3592033.186 = ₩16,111,796 Mil.
Gross Profit was 715717.688 + 938117.575 + 825935.536 + 781723.43 = ₩3,261,494 Mil.
Total Current Assets was ₩8,595,170 Mil.
Total Assets was ₩30,391,776 Mil.
Property, Plant and Equipment(Net PPE) was ₩18,174,887 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,722,896 Mil.
Selling, General, & Admin. Expense(SGA) was ₩861,562 Mil.
Total Current Liabilities was ₩9,409,864 Mil.
Long-Term Debt & Capital Lease Obligation was ₩7,207,496 Mil.
Net Income was 66188.464 + 406704.573 + 354434.085 + 233838.168 = ₩1,061,165 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 930793.091 + 962316.127 + 1046306.479 + 1153048.904 = ₩4,092,465 Mil.

Total Receivables was ₩1,108,548 Mil.
Revenue was 3879655.764 + 3910761.736 + 3421420.22 + 2884257.098 = ₩14,096,095 Mil.
Gross Profit was 866304.559 + 1051293.187 + 1007803.604 + 925253.039 = ₩3,850,654 Mil.
Total Current Assets was ₩8,090,937 Mil.
Total Assets was ₩28,997,701 Mil.
Property, Plant and Equipment(Net PPE) was ₩17,079,086 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,649,736 Mil.
Selling, General, & Admin. Expense(SGA) was ₩488,375 Mil.
Total Current Liabilities was ₩8,475,183 Mil.
Long-Term Debt & Capital Lease Obligation was ₩7,481,030 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)
	=	(1121726.256 / 16111796.106)	/	(1108547.89 / 14096094.818)
	=	0.069621	/	0.078642
	=	0.8853

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)
	=	(3850654.389 / 14096094.818)	/	(3261494.229 / 16111796.106)
	=	0.273172	/	0.202429
	=	1.3495

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 - (8595169.639 + 18174886.816) / 30391776.03)	/	(1 - (8090936.743 + 17079086.487) / 28997701.022)
	=	0.119168	/	0.131999
	=	0.9028

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
	=	16111796.106	/	14096094.818
	=	1.143

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))
	=	(1649736.084 / (1649736.084 + 17079086.487))	/	(1722896.372 / (1722896.372 + 18174886.816))
	=	0.088085	/	0.086587
	=	1.0173

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)
	=	(861562.32 / 16111796.106)	/	(488374.571 / 14096094.818)
	=	0.053474	/	0.034646
	=	1.5434

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)
	=	((7207495.87 + 9409864.309) / 30391776.03)	/	((7481030.087 + 8475183.413) / 28997701.022)
	=	0.546772	/	0.550258
	=	0.9937

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
	=	(1061165.29 - 0	-	4092464.601)	/	30391776.03
	=	-0.099741

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.

Korean Air Lines Co has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

Korean Air Lines Co Beneish M-Score Related Terms

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Korean Air Lines Co (XKRX:003490) Business Description

Industry

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003495:Korea

Address

260 Haneul-gil, Gangseo-gu, Seoul, KOR

Website

http://www.koreanair.com

Korean Air Lines Co Ltd is an airline operator with a global reach. The company has four operating segments: Air transport (majority of total revenues), Aerospace (maintenance and repairs), In-flight meals, and Hotel/limousine and others. Passenger tickets can be bought on the company's website or at the airport counter. Multiple options related to passenger class or cabin experience, baggage fees, and other services are offered to customers. Revenues derived from Republic of Korea account for approximately one-fourth of total revenues, with the remainder coming from international operations. The company has created an alliance with global carriers to help connect flights, and give passengers better options to travel.

Korean Air Lines Co (XKRX:003490) Headlines

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