Kumho Petro Chemical (XKRX:011785) Beneish M-Score : -2.36 (As of Jun. 15, 2024)

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What is Kumho Petro Chemical 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:011785' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.54 Max: -1.73
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Kumho Petro Chemical was -1.73. The lowest was -3.21. And the median was -2.54.

Kumho Petro Chemical Beneish M-Score Historical Data

The historical data trend for Kumho Petro Chemical'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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Kumho Petro Chemical Beneish M-Score Chart

Kumho Petro Chemical Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.78

-2.33

-1.78

-2.07

Kumho Petro Chemical Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.81	-2.19	-2.32	-2.07	-2.36

Competitive Comparison of Kumho Petro Chemical's Beneish M-Score

For the Specialty Chemicals subindustry, Kumho Petro Chemical'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.

Kumho Petro Chemical's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kumho Petro Chemical's Beneish M-Score distribution charts can be found below:

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

Kumho Petro Chemical 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 Kumho Petro Chemical 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 * 1.1836

0.528 * 1.5587

0.404 * 1.053

0.892 * 0.8361

0.115 * 1.043

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1829

4.679 * -0.04025

0.327 * 1.0126

-2.36

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩864,033 Mil.
Revenue was 1667489.494 + 1516121.251 + 1507018.131 + 1578132.239 = ₩6,268,761 Mil.
Gross Profit was 148689.046 + 116002.144 + 153479.242 + 180162.472 = ₩598,333 Mil.
Total Current Assets was ₩2,831,803 Mil.
Total Assets was ₩8,289,001 Mil.
Property, Plant and Equipment(Net PPE) was ₩4,096,088 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩256,005 Mil.
Selling, General, & Admin. Expense(SGA) was ₩98,153 Mil.
Total Current Liabilities was ₩1,759,170 Mil.
Long-Term Debt & Capital Lease Obligation was ₩390,531 Mil.
Net Income was 102542.639 + 93256.343 + 103619.311 + 117369.348 = ₩416,788 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 218666.82 + 59006.211 + 354909.978 + 117833.491 = ₩750,417 Mil.

Total Receivables was ₩873,157 Mil.
Revenue was 1721256.566 + 1645496.879 + 1887176.583 + 2243856.444 = ₩7,497,786 Mil.
Gross Profit was 198019.008 + 195773.208 + 299379.417 + 422336.901 = ₩1,115,509 Mil.
Total Current Assets was ₩2,977,330 Mil.
Total Assets was ₩7,986,633 Mil.
Property, Plant and Equipment(Net PPE) was ₩3,763,801 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩246,015 Mil.
Selling, General, & Admin. Expense(SGA) was ₩99,244 Mil.
Total Current Liabilities was ₩1,769,584 Mil.
Long-Term Debt & Capital Lease Obligation was ₩275,974 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)
	=	(864033.35 / 6268761.115)	/	(873157.377 / 7497786.472)
	=	0.137832	/	0.116455
	=	1.1836

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)
	=	(1115508.534 / 7497786.472)	/	(598332.904 / 6268761.115)
	=	0.148778	/	0.095447
	=	1.5587

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 - (2831802.658 + 4096087.543) / 8289000.766)	/	(1 - (2977330.238 + 3763801.498) / 7986632.57)
	=	0.164207	/	0.155948
	=	1.053

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
	=	6268761.115	/	7497786.472
	=	0.8361

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))
	=	(246015 / (246015 + 3763801.498))	/	(256005.257 / (256005.257 + 4096087.543))
	=	0.061353	/	0.058823
	=	1.043

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)
	=	(98152.973 / 6268761.115)	/	(99243.832 / 7497786.472)
	=	0.015657	/	0.013236
	=	1.1829

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)
	=	((390531.126 + 1759169.677) / 8289000.766)	/	((275974.325 + 1769583.708) / 7986632.57)
	=	0.259344	/	0.256123
	=	1.0126

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
	=	(416787.641 - 0	-	750416.5)	/	8289000.766
	=	-0.04025

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.

Kumho Petro Chemical has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.

Kumho Petro Chemical Beneish M-Score Related Terms

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Kumho Petro Chemical (XKRX:011785) Business Description

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011780:Korea

Address

21/24F Kumho Asiana Main Tower 115, Sinmunno 1-ga, Jongno-gu, Seoul, KOR, 110-061

Website

http://www.kkpc.com

Kumho Petro Chemical Ltd is a manufacturer of synthetic rubbers, and does business in synthetic resins, specialty chemicals, electronic materials, nanocarbon, energy, and building materials. The synthetic rubber business constitutes the largest portion of the company's revenue, and its products are applied to tires, shoes, auto parts, and other industrial applications. Kumho's main customers, under the rubber segment, are global tire manufacturers. Second to the rubber business in revenue, the synthetic resins business manufactures products used in auto parts, home appliances, beverage containers, and a host of other products. The company's revenue is largely derived from international exports, but the remainder of sales are executed in Korea.

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