LTC CO.LTD (XKRX:170920) Beneish M-Score : -2.16 (As of Dec. 11, 2024)

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What is LTC CO.LTD 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 LTC CO.LTD's Beneish M-Score or its related term are showing as below:

XKRX:170920' s Beneish M-Score Range Over the Past 10 Years
Min: -3.64 Med: -2.45 Max: -1.42
Current: -2.16

During the past 12 years, the highest Beneish M-Score of LTC CO.LTD was -1.42. The lowest was -3.64. And the median was -2.45.

LTC CO.LTD Beneish M-Score Historical Data

The historical data trend for LTC CO.LTD'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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LTC CO.LTD Beneish M-Score Chart

LTC CO.LTD Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.72

-3.04

-1.80

-1.42

-3.64

LTC CO.LTD 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															-3.34	-3.64	-2.79	-2.34	-2.16

Competitive Comparison of LTC CO.LTD's Beneish M-Score

For the Specialty Chemicals subindustry, LTC CO.LTD'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.

LTC CO.LTD's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, LTC CO.LTD's Beneish M-Score distribution charts can be found below:

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

LTC CO.LTD 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 LTC CO.LTD 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 * 1.3483

0.528 * 0.9685

0.404 * 0.4177

0.892 * 1.2297

0.115 * 1.9255

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6496

4.679 * -0.028718

0.327 * 0.9498

-2.16

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ₩22,136 Mil.
Revenue was 76956.121 + 57760.955 + 49680.987 + 25359.248 = ₩209,757 Mil.
Gross Profit was 17288.237 + 12445.994 + 10329.603 + 2106.469 = ₩42,170 Mil.
Total Current Assets was ₩182,848 Mil.
Total Assets was ₩326,622 Mil.
Property, Plant and Equipment(Net PPE) was ₩111,225 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩10,541 Mil.
Selling, General, & Admin. Expense(SGA) was ₩5,577 Mil.
Total Current Liabilities was ₩200,376 Mil.
Long-Term Debt & Capital Lease Obligation was ₩4,062 Mil.
Net Income was 2181.117 + 256.391 + 123.45 + -11715.684 = ₩-9,155 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 15978.809 + -5559.131 + 3893.211 + -14087.559 = ₩225 Mil.

Total Receivables was ₩13,351 Mil.
Revenue was 24938.869 + 35481.725 + 27578.959 + 82579.932 = ₩170,579 Mil.
Gross Profit was 3539.32 + 10231.333 + 6428.079 + 13013.565 = ₩33,212 Mil.
Total Current Assets was ₩141,907 Mil.
Total Assets was ₩266,821 Mil.
Property, Plant and Equipment(Net PPE) was ₩61,256 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩12,253 Mil.
Selling, General, & Admin. Expense(SGA) was ₩6,981 Mil.
Total Current Liabilities was ₩167,746 Mil.
Long-Term Debt & Capital Lease Obligation was ₩8,086 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)
	=	(22135.919 / 209757.311)	/	(13350.953 / 170579.485)
	=	0.105531	/	0.078268
	=	1.3483

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)
	=	(33212.297 / 170579.485)	/	(42170.303 / 209757.311)
	=	0.194703	/	0.201043
	=	0.9685

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 - (182848.091 + 111225.111) / 326622.288)	/	(1 - (141906.654 + 61256.153) / 266821.175)
	=	0.099654	/	0.238581
	=	0.4177

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
	=	209757.311	/	170579.485
	=	1.2297

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))
	=	(12253.327 / (12253.327 + 61256.153))	/	(10541.138 / (10541.138 + 111225.111))
	=	0.16669	/	0.086569
	=	1.9255

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)
	=	(5576.549 / 209757.311)	/	(6981.141 / 170579.485)
	=	0.026586	/	0.040926
	=	0.6496

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)
	=	((4062.151 + 200375.558) / 326622.288)	/	((8085.86 + 167746.233) / 266821.175)
	=	0.625915	/	0.658989
	=	0.9498

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
	=	(-9154.726 - 0	-	225.33)	/	326622.288
	=	-0.028718

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.

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

LTC CO.LTD Beneish M-Score Related Terms

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LTC CO.LTD Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » LTC CO.LTD (XKRX:170920) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

264, Sucham-Ri, Tongjin-Eup, Gimpo, KOR, 415868

Website

http://www.l-tech.co.kr

LTC CO.LTD develops and produces process chemicals used in the manufacturing process for flat panel displays and semiconductors. The company's product offerings include FPD chemicals and Nano chemicals.

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