Coway (XKRX:021240) Beneish M-Score : -2.16 (As of Jun. 19, 2024)

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What is Coway 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 -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:021240' s Beneish M-Score Range Over the Past 10 Years
Min: -18.92 Med: -2.92 Max: 10.07
Current: -2.16

During the past 13 years, the highest Beneish M-Score of Coway was 10.07. The lowest was -18.92. And the median was -2.92.

Coway Beneish M-Score Historical Data

The historical data trend for Coway'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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Coway Beneish M-Score Chart

Coway Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.27

-3.16

-5.71

-1.38

-2.11

Coway 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															-1.52	-1.74	-2.00	-2.11	-2.16

Competitive Comparison of Coway's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Coway'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.

Coway's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Coway's Beneish M-Score distribution charts can be found below:

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

Coway 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 Coway 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 * 1.2173

0.528 * 0.9916

0.404 * 1.0864

0.892 * 1.0371

0.115 * 1.0443

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9757

4.679 * 0.0057

0.327 * 0.9426

-2.16

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩-640,659 Mil.
Revenue was 1001835.311 + 1004383.213 + 1007673.617 + 1006168.606 = ₩4,020,061 Mil.
Gross Profit was 654081.995 + 654728.899 + 658697.389 + 645949.245 = ₩2,613,458 Mil.
Total Current Assets was ₩1,620,229 Mil.
Total Assets was ₩4,978,079 Mil.
Property, Plant and Equipment(Net PPE) was ₩1,012,194 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩431,178 Mil.
Selling, General, & Admin. Expense(SGA) was ₩927,658 Mil.
Total Current Liabilities was ₩1,566,720 Mil.
Long-Term Debt & Capital Lease Obligation was ₩670,796 Mil.
Net Income was 127691.55 + 101735.048 + 137009.255 + 107207.759 = ₩473,644 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 120068.018 + 167414.482 + 83128.375 + 74659.421 = ₩445,270 Mil.

Total Receivables was ₩-507,473 Mil.
Revenue was 948294.286 + 980217.086 + 969751.715 + 978162.758 = ₩3,876,426 Mil.
Gross Profit was 612104.424 + 647562.332 + 612944.331 + 626293.116 = ₩2,498,904 Mil.
Total Current Assets was ₩1,577,402 Mil.
Total Assets was ₩4,618,186 Mil.
Property, Plant and Equipment(Net PPE) was ₩1,037,679 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩470,467 Mil.
Selling, General, & Admin. Expense(SGA) was ₩916,809 Mil.
Total Current Liabilities was ₩1,504,368 Mil.
Long-Term Debt & Capital Lease Obligation was ₩697,696 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)
	=	(-640659.492 / 4020060.747)	/	(-507472.814 / 3876425.845)
	=	-0.159366	/	-0.130913
	=	1.2173

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)
	=	(2498904.203 / 3876425.845)	/	(2613457.528 / 4020060.747)
	=	0.644641	/	0.650104
	=	0.9916

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 - (1620228.75 + 1012193.733) / 4978078.745)	/	(1 - (1577401.75 + 1037679.347) / 4618186.231)
	=	0.471197	/	0.433743
	=	1.0864

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
	=	4020060.747	/	3876425.845
	=	1.0371

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))
	=	(470466.905 / (470466.905 + 1037679.347))	/	(431178.349 / (431178.349 + 1012193.733))
	=	0.31195	/	0.29873
	=	1.0443

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)
	=	(927657.824 / 4020060.747)	/	(916808.815 / 3876425.845)
	=	0.230757	/	0.236509
	=	0.9757

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)
	=	((670796.144 + 1566720.296) / 4978078.745)	/	((697695.732 + 1504367.55) / 4618186.231)
	=	0.449474	/	0.476824
	=	0.9426

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
	=	(473643.612 - 0	-	445270.296)	/	4978078.745
	=	0.0057

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.

Coway has a M-score of -2.16 suggests that the company is unlikely to be a manipulator.

Coway Beneish M-Score Related Terms

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Coway (XKRX:021240) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Coway (XKRX:021240) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

88 Seosomun-ro, 11th -18th floor of Coway Seosomun Building, Jung-gu, Seoul, KOR, 100-759

Website

http://www.coway.co.kr

Coway is a Korea-based company engaged in the manufacturing of water filtration appliances, air purifiers and bidets. The company's products portfolio consists of water purifiers, air purifiers, electronic bidets, non-electronic bidets, water softeners, vacuum cleaners, water dispensers, food waste treatment solutions and sewage treatment solutions for household and business uses. It is also involved in the mattress rental and related home furniture products.

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