Rothwell International Co (XKRX:900260) Beneish M-Score : 0.18 (As of May. 05, 2024)

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What is Rothwell International 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.

Warning Sign:

Beneish M-Score 0.18 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XKRX:900260' s Beneish M-Score Range Over the Past 10 Years
Min: -4.9 Med: -2.71 Max: 0.37
Current: 0.18

During the past 9 years, the highest Beneish M-Score of Rothwell International Co was 0.37. The lowest was -4.90. And the median was -2.71.

Rothwell International Co Beneish M-Score Historical Data

The historical data trend for Rothwell International 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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Rothwell International Co Beneish M-Score Chart

Rothwell International Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.98

-4.90

-3.55

0.37

0.18

Rothwell International Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															0.37	2.17	6.92	4.20	0.18

Competitive Comparison of Rothwell International Co's Beneish M-Score

For the Auto Parts subindustry, Rothwell International 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.

Rothwell International Co's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Rothwell International Co's Beneish M-Score distribution charts can be found below:

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

Rothwell International 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 Rothwell International 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 * 0.9917

0.528 * 0.9922

0.404 * 0.5993

0.892 * 4.2859

0.115 * 0.7743

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.2131

4.679 * 0.006777

0.327 * 1.7346

0.18

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ₩139,359 Mil.
Revenue was 136453.818 + 86048.864 + 92185.349 + 49583.527 = ₩364,272 Mil.
Gross Profit was 11067.598 + 6921.608 + 8590.49 + 3983.345 = ₩30,563 Mil.
Total Current Assets was ₩345,745 Mil.
Total Assets was ₩416,260 Mil.
Property, Plant and Equipment(Net PPE) was ₩69,030 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩6,144 Mil.
Selling, General, & Admin. Expense(SGA) was ₩2,011 Mil.
Total Current Liabilities was ₩176,972 Mil.
Long-Term Debt & Capital Lease Obligation was ₩24,869 Mil.
Net Income was 8407.449 + 3361.327 + 497.267 + 2745.838 = ₩15,012 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 7397.892 + 4546.222 + -2356.855 + 2603.622 = ₩12,191 Mil.

Total Receivables was ₩32,787 Mil.
Revenue was 57747.242 + 18054.832 + 4125.697 + 5065.381 = ₩84,993 Mil.
Gross Profit was 4208.036 + 1879.549 + -203.42 + 1191.391 = ₩7,076 Mil.
Total Current Assets was ₩205,461 Mil.
Total Assets was ₩278,970 Mil.
Property, Plant and Equipment(Net PPE) was ₩71,848 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩4,854 Mil.
Selling, General, & Admin. Expense(SGA) was ₩2,202 Mil.
Total Current Liabilities was ₩56,438 Mil.
Long-Term Debt & Capital Lease Obligation was ₩21,544 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)
	=	(139359.288 / 364271.558)	/	(32786.904 / 84993.152)
	=	0.38257	/	0.385759
	=	0.9917

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)
	=	(7075.556 / 84993.152)	/	(30563.041 / 364271.558)
	=	0.083249	/	0.083902
	=	0.9922

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 - (345745.446 + 69030.415) / 416260.109)	/	(1 - (205461.422 + 71848.27) / 278969.546)
	=	0.003566	/	0.00595
	=	0.5993

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
	=	364271.558	/	84993.152
	=	4.2859

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))
	=	(4854.32 / (4854.32 + 71848.27))	/	(6144.325 / (6144.325 + 69030.415))
	=	0.063288	/	0.081734
	=	0.7743

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)
	=	(2011.099 / 364271.558)	/	(2202.077 / 84993.152)
	=	0.005521	/	0.025909
	=	0.2131

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)
	=	((24869.117 + 176972.432) / 416260.109)	/	((21544.482 + 56438.256) / 278969.546)
	=	0.484893	/	0.279539
	=	1.7346

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
	=	(15011.881 - 0	-	12190.881)	/	416260.109
	=	0.006777

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.

Rothwell International Co has a M-score of 0.18 signals that the company is likely to be a manipulator.

Rothwell International Co Beneish M-Score Related Terms

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Rothwell International Co (XKRX:900260) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Rothwell International Co Ltd (XKRX:900260) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Unit 402, 4th Floor, Fairmont House, No. 8 Cotton Tree Drive, Admiralty, Hong Kong, HKG

Website

http://www.rothwellinternational.co.kr

Rothwell International Co Ltd is a holding company. The company through its subsidiaries is engaged in manufacturing CAN-based automotive electronic control systems and automotive air conditioning systems.

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