East Asia Holdings Investment (XKRX:900110) Beneish M-Score : -2.44 (As of Sep. 25, 2024)

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What is East Asia Holdings Investment 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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:900110' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72 Med: -2.42 Max: -1.29
Current: -2.44

During the past 13 years, the highest Beneish M-Score of East Asia Holdings Investment was -1.29. The lowest was -3.72. And the median was -2.42.

East Asia Holdings Investment Beneish M-Score Historical Data

The historical data trend for East Asia Holdings Investment'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.

East Asia Holdings Investment Beneish M-Score Chart

East Asia Holdings Investment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.68

-3.30

-1.29

-1.69

-2.50

East Asia Holdings Investment Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-2.00	-2.24	-2.50	-2.50	-2.44

Competitive Comparison of East Asia Holdings Investment's Beneish M-Score

For the Apparel Manufacturing subindustry, East Asia Holdings Investment'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.

East Asia Holdings Investment's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, East Asia Holdings Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where East Asia Holdings Investment's Beneish M-Score falls into.

East Asia Holdings Investment 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 East Asia Holdings Investment 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 * 0.9297

0.528 * 0.8776

0.404 * 1.247

0.892 * 1.1536

0.115 * 0.4536

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9028

4.679 * -0.015606

0.327 * 0.839

-2.44

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was ₩27,549 Mil.
Revenue was 19693.147 + 12230.689 + 21109.9 + 15778.469 = ₩68,812 Mil.
Gross Profit was 6326.245 + 3971.128 + 6700.627 + 5035.46 = ₩22,033 Mil.
Total Current Assets was ₩256,816 Mil.
Total Assets was ₩315,407 Mil.
Property, Plant and Equipment(Net PPE) was ₩6,113 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩4,939 Mil.
Selling, General, & Admin. Expense(SGA) was ₩8,475 Mil.
Total Current Liabilities was ₩8,886 Mil.
Long-Term Debt & Capital Lease Obligation was ₩0 Mil.
Net Income was 2377.904 + 279.945 + 83.409 + 535.042 = ₩3,276 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 3562.661 + 7870.742 + 1052.112 + -4286.932 = ₩8,199 Mil.

Total Receivables was ₩25,685 Mil.
Revenue was 16992.269 + 8889.076 + 19174.066 + 14592.733 = ₩59,648 Mil.
Gross Profit was 5266.679 + 2488.179 + 5151.582 + 3855.486 = ₩16,762 Mil.
Total Current Assets was ₩235,648 Mil.
Total Assets was ₩278,967 Mil.
Property, Plant and Equipment(Net PPE) was ₩6,097 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,550 Mil.
Selling, General, & Admin. Expense(SGA) was ₩8,137 Mil.
Total Current Liabilities was ₩9,367 Mil.
Long-Term Debt & Capital Lease Obligation was ₩0 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)
	=	(27548.997 / 68812.205)	/	(25684.558 / 59648.144)
	=	0.40035	/	0.430601
	=	0.9297

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)
	=	(16761.926 / 59648.144)	/	(22033.46 / 68812.205)
	=	0.281013	/	0.320197
	=	0.8776

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 - (256816.378 + 6112.694) / 315407.284)	/	(1 - (235647.887 + 6097.434) / 278966.521)
	=	0.166382	/	0.133425
	=	1.247

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
	=	68812.205	/	59648.144
	=	1.1536

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))
	=	(1550.138 / (1550.138 + 6097.434))	/	(4939.118 / (4939.118 + 6112.694))
	=	0.202697	/	0.446906
	=	0.4536

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)
	=	(8474.572 / 68812.205)	/	(8136.858 / 59648.144)
	=	0.123155	/	0.136414
	=	0.9028

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)
	=	((0 + 8885.652) / 315407.284)	/	((0 + 9366.771) / 278966.521)
	=	0.028172	/	0.033577
	=	0.839

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
	=	(3276.3 - 0	-	8198.583)	/	315407.284
	=	-0.015606

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.

East Asia Holdings Investment has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.

East Asia Holdings Investment Beneish M-Score Related Terms

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East Asia Holdings Investment Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » East Asia Holdings Investment Ltd (XKRX:900110) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

3 Garden Road, Central, Suite 501-25th Floor, ICBC Tower, Hong Kong, HKG

Website

http://www.eastasiaholdings.co.kr

East Asia Holdings Investment Ltd is a holding company located in Hong Kong. The company is engaged in designing, producing and selling of sports footwear products and sales of sports apparel products in mainland China. The products are sold to end customers through franchise branches and outlets. It is making new growth capabilities through investment in the healthcare industry.

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