Hansol Home Deco Co (XKRX:025750) Beneish M-Score : -2.57 (As of May. 27, 2024)

View and export this data going back to 2003. Start your Free Trial

What is Hansol Home Deco 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 -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:025750' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98 Med: -2.59 Max: -2.04
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Hansol Home Deco Co was -2.04. The lowest was -2.98. And the median was -2.59.

Hansol Home Deco Co Beneish M-Score Historical Data

The historical data trend for Hansol Home Deco 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.

* Premium members only.

Hansol Home Deco Co Beneish M-Score Chart

Hansol Home Deco Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.49

-2.83

-2.60

-2.54

-2.53

Hansol Home Deco Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.69	-2.36	-2.50	-2.53	-2.57

Competitive Comparison of Hansol Home Deco Co's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Hansol Home Deco 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.

Hansol Home Deco Co's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hansol Home Deco Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hansol Home Deco Co's Beneish M-Score falls into.

Hansol Home Deco 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 Hansol Home Deco 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 * 1.0855

0.528 * 1.0777

0.404 * 0.9839

0.892 * 1.1462

0.115 * 0.918

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.762

4.679 * -0.071878

0.327 * 1.0893

-2.57

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩48,155 Mil.
Revenue was 81121.403 + 82715.687 + 79993.346 + 72730.337 = ₩316,561 Mil.
Gross Profit was 12242.975 + 12700.078 + 11010.367 + 10014.15 = ₩45,968 Mil.
Total Current Assets was ₩122,599 Mil.
Total Assets was ₩318,998 Mil.
Property, Plant and Equipment(Net PPE) was ₩134,790 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩10,483 Mil.
Selling, General, & Admin. Expense(SGA) was ₩23,259 Mil.
Total Current Liabilities was ₩115,090 Mil.
Long-Term Debt & Capital Lease Obligation was ₩56,583 Mil.
Net Income was -1175.3 + -7533.341 + -1336.004 + -3273.587 = ₩-13,318 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 4104.847 + -1131.766 + 6630.782 + 6.925 = ₩9,611 Mil.

Total Receivables was ₩38,703 Mil.
Revenue was 64563.952 + 68210.959 + 69865.877 + 73543.1 = ₩276,184 Mil.
Gross Profit was 8077.149 + 10418.316 + 11280.448 + 13444.316 = ₩43,220 Mil.
Total Current Assets was ₩110,605 Mil.
Total Assets was ₩321,590 Mil.
Property, Plant and Equipment(Net PPE) was ₩147,858 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩10,489 Mil.
Selling, General, & Admin. Expense(SGA) was ₩26,631 Mil.
Total Current Liabilities was ₩138,473 Mil.
Long-Term Debt & Capital Lease Obligation was ₩20,411 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)
	=	(48154.981 / 316560.773)	/	(38702.797 / 276183.888)
	=	0.152119	/	0.140134
	=	1.0855

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)
	=	(43220.229 / 276183.888)	/	(45967.57 / 316560.773)
	=	0.156491	/	0.145209
	=	1.0777

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 - (122599.32 + 134789.579) / 318998.154)	/	(1 - (110605.3 + 147858.105) / 321590.205)
	=	0.193134	/	0.196296
	=	0.9839

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
	=	316560.773	/	276183.888
	=	1.1462

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))
	=	(10489.161 / (10489.161 + 147858.105))	/	(10483.09 / (10483.09 + 134789.579))
	=	0.066242	/	0.072161
	=	0.918

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)
	=	(23258.727 / 316560.773)	/	(26631.059 / 276183.888)
	=	0.073473	/	0.096425
	=	0.762

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)
	=	((56583.409 + 115089.515) / 318998.154)	/	((20410.659 + 138473.013) / 321590.205)
	=	0.538163	/	0.494056
	=	1.0893

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
	=	(-13318.232 - 0	-	9610.788)	/	318998.154
	=	-0.071878

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.

Hansol Home Deco Co has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.

Hansol Home Deco Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Hansol Home Deco Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Hansol Home Deco Co (XKRX:025750) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Hansol Home Deco Co Ltd (XKRX:025750) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

5th street 15, Boramae road, Yonggi-gu, Seoul, KOR

Website

http://www.hansolhomedeco.co.kr

Hansol Home Deco Co Ltd is engaged in manufacturing woodland products, furniture components, and interior materials in South Korea. Its product portfolio includes medium density fiberboards (MDF), particle boards, laminated flooring, and lumber products.

Hansol Home Deco Co (XKRX:025750) Headlines

No Headlines