Samsung Fire & Marine Insurance 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 Samsung Fire & Marine Insurance Co for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * | + | 0.528 * | + | 0.404 * | + | 0.892 * | + | 0.115 * |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * | + | 4.679 * | - | 0.327 * |
| = | |
* 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.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was ₩712,297 Mil.
Revenue was 4470842.966 + 4427427.905 + 4452963.85 + 4514724.445 = ₩17,865,959 Mil.
Gross Profit was 4470842.966 + 4427427.905 + 4452963.85 + 4514724.445 = ₩17,865,959 Mil.
Total Current Assets was ₩0 Mil.
Total Assets was ₩85,019,030 Mil.
Property, Plant and Equipment(Net PPE) was ₩767,341 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩232,509 Mil.
Selling, General, & Admin. Expense(SGA) was ₩602,839 Mil.
Total Current Liabilities was ₩0 Mil.
Long-Term Debt & Capital Lease Obligation was ₩0 Mil.
Net Income was 175151.205 + 428207.689 + 602344.03 + 612730.737 = ₩1,818,434 Mil.
Non Operating Income was 78935.705 + 155125.303 + 65462.271 + 340299.111 = ₩639,822 Mil.
Cash Flow from Operations was 343525.86 + 193937.917 + 370568.758 + -1470123.267 = ₩-562,091 Mil.
|
Total Receivables was ₩690,042 Mil.
Revenue was 4348828.469 + 4277527.746 + 4123745.304 + 4124771.661 = ₩16,874,873 Mil.
Gross Profit was 4348828.469 + 4277527.746 + 4123745.304 + 4124771.661 = ₩16,874,873 Mil.
Total Current Assets was ₩0 Mil.
Total Assets was ₩80,796,010 Mil.
Property, Plant and Equipment(Net PPE) was ₩771,144 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩285,958 Mil.
Selling, General, & Admin. Expense(SGA) was ₩614,116 Mil.
Total Current Liabilities was ₩0 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) |
| = | (712296.66 / 17865959.166) | / | (690042.337 / 16874873.18) |
| = | 0.039869 | / | 0.040892 |
| | = | |
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) |
| = | (16874873.18 / 16874873.18) | / | (17865959.166 / 17865959.166) |
| = | 1 | / | 1 |
| | = | |
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 - (0 + 767341.447) / 85019029.989) | / | (1 - (0 + 771143.985) / 80796010.435) |
| = | 0.990974 | / | 0.990456 |
| | = | |
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 |
| = | 17865959.166 | / | 16874873.18 |
| | = | |
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)) |
| = | (285958 / (285958 + 771143.985)) | / | (232509 / (232509 + 767341.447)) |
| = | 0.270511 | / | 0.232544 |
| | = | |
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) |
| = | (602839.324 / 17865959.166) | / | (614116 / 16874873.18) |
| = | 0.033742 | / | 0.036392 |
| | = | |
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 + 0) / 85019029.989) | / | ((0 + 0) / 80796010.435) |
| = | 0 | / | 0 |
| | = | |
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 |
| = | (1818433.661 - 639822.39 | - | -562090.732) | / | 85019029.989 |
| | = | 0.020474 |
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.
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