Hwaseung Enterprise Co (XKRX:241590) Beneish M-Score : -2.17 (As of Apr. 21, 2025)

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What is Hwaseung Enterprise 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 -2.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:241590' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82 Med: -2.28 Max: -1.78
Current: -2.17

During the past 10 years, the highest Beneish M-Score of Hwaseung Enterprise Co was -1.78. The lowest was -2.82. And the median was -2.28.

Hwaseung Enterprise Co Beneish M-Score Historical Data

The historical data trend for Hwaseung Enterprise 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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Hwaseung Enterprise Co Beneish M-Score Chart

Hwaseung Enterprise Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.82

-2.10

-2.78

-2.52

-2.17

Hwaseung Enterprise 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															-2.52	-2.38	-2.49	-2.76	-2.17

Competitive Comparison of Hwaseung Enterprise Co's Beneish M-Score

For the Footwear & Accessories subindustry, Hwaseung Enterprise 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.

Hwaseung Enterprise Co's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hwaseung Enterprise Co's Beneish M-Score distribution charts can be found below:

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

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Hwaseung Enterprise 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 Hwaseung Enterprise 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 * 1.1103

0.528 * 0.9767

0.404 * 1.0953

0.892 * 1.3261

0.115 * 1.0776

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6754

4.679 * -0.031058

0.327 * 1.0755

-2.17

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ₩266,947 Mil.
Revenue was 486455.418 + 386114.214 + 391677.791 + 345369.189 = ₩1,609,617 Mil.
Gross Profit was 71647.642 + 53586.147 + 56168.808 + 40361.37 = ₩221,764 Mil.
Total Current Assets was ₩747,104 Mil.
Total Assets was ₩1,537,604 Mil.
Property, Plant and Equipment(Net PPE) was ₩702,412 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩71,418 Mil.
Selling, General, & Admin. Expense(SGA) was ₩69,489 Mil.
Total Current Liabilities was ₩899,824 Mil.
Long-Term Debt & Capital Lease Obligation was ₩53,327 Mil.
Net Income was 20537.37 + 7949.213 + 6120.917 + -1499.137 = ₩33,108 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 21375.075 + 3757.379 + 35727.695 + 20003.001 = ₩80,863 Mil.

Total Receivables was ₩181,306 Mil.
Revenue was 325190.42 + 261290.195 + 321909.347 + 305441.975 = ₩1,213,832 Mil.
Gross Profit was 51013.948 + 34185.196 + 46959.463 + 31183.761 = ₩163,342 Mil.
Total Current Assets was ₩646,562 Mil.
Total Assets was ₩1,360,570 Mil.
Property, Plant and Equipment(Net PPE) was ₩642,846 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩70,992 Mil.
Selling, General, & Admin. Expense(SGA) was ₩77,586 Mil.
Total Current Liabilities was ₩718,786 Mil.
Long-Term Debt & Capital Lease Obligation was ₩65,409 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)
	=	(266946.754 / 1609616.612)	/	(181305.512 / 1213831.937)
	=	0.165845	/	0.149366
	=	1.1103

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)
	=	(163342.368 / 1213831.937)	/	(221763.967 / 1609616.612)
	=	0.134568	/	0.137774
	=	0.9767

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 - (747104.298 + 702412.071) / 1537604.344)	/	(1 - (646562.391 + 642846.484) / 1360570.206)
	=	0.057289	/	0.052303
	=	1.0953

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
	=	1609616.612	/	1213831.937
	=	1.3261

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))
	=	(70991.829 / (70991.829 + 642846.484))	/	(71418.101 / (71418.101 + 702412.071))
	=	0.099451	/	0.092292
	=	1.0776

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)
	=	(69489.077 / 1609616.612)	/	(77585.903 / 1213831.937)
	=	0.043171	/	0.063918
	=	0.6754

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)
	=	((53327.259 + 899823.895) / 1537604.344)	/	((65408.884 + 718786.094) / 1360570.206)
	=	0.619894	/	0.576372
	=	1.0755

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
	=	(33108.363 - 0	-	80863.15)	/	1537604.344
	=	-0.031058

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.

Hwaseung Enterprise Co has a M-score of -2.17 suggests that the company is unlikely to be a manipulator.

Hwaseung Enterprise Co Beneish M-Score Related Terms

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Hwaseung Enterprise Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Hwaseung Enterprise Co Ltd (XKRX:241590) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

1079, Jungang-daero, Yeonje-gu, BUSAN, 6th Floor, Seoul, KOR, 06619

Website

http://www.hsenterprise.co.kr

Hwaseung Enterprise Co Ltd is a Korea based holding company. The company through its holdings is engaged in two business divisions including shoe business and distribution business. Shoe business division is engaged in the manufacturing of sports shoes for different brands. Its distribution division is engaged in the purchase and sale of natural rubber, synthetic rubber, reclaimed rubber, pepper and chemical materials.

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