HS Ad (XKRX:035000) Beneish M-Score : -2.67 (As of May. 29, 2024)

View and export this data going back to 1999. Start your Free Trial

What is HS Ad 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:035000' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95 Med: -2.4 Max: -1.57
Current: -2.67

During the past 13 years, the highest Beneish M-Score of HS Ad was -1.57. The lowest was -2.95. And the median was -2.40.

HS Ad Beneish M-Score Historical Data

The historical data trend for HS Ad'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.

HS Ad Beneish M-Score Chart

HS Ad Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.57

-2.51

-2.10

-2.41

-2.95

HS Ad 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															-2.74	-2.32	-2.39	-2.95	-2.67

Competitive Comparison of HS Ad's Beneish M-Score

For the Advertising Agencies subindustry, HS Ad'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.

HS Ad's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, HS Ad's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where HS Ad's Beneish M-Score falls into.

HS Ad 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 HS Ad 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 * 1.0741

0.528 * 0.9347

0.404 * 0.8688

0.892 * 1.0231

0.115 * 0.9696

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0752

4.679 * -0.037982

0.327 * 0.9766

-2.67

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩264,479 Mil.
Revenue was 86301.099 + 190063.247 + 116453.598 + 152215.963 = ₩545,034 Mil.
Gross Profit was 42939.809 + 67720.163 + 55242.13 + 57350.115 = ₩223,252 Mil.
Total Current Assets was ₩393,751 Mil.
Total Assets was ₩437,730 Mil.
Property, Plant and Equipment(Net PPE) was ₩12,381 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩10,322 Mil.
Selling, General, & Admin. Expense(SGA) was ₩22,601 Mil.
Total Current Liabilities was ₩258,212 Mil.
Long-Term Debt & Capital Lease Obligation was ₩4,351 Mil.
Net Income was -7509.905 + 11314.936 + 5698.921 + 3944.715 = ₩13,449 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was -33011.874 + 57765.833 + -304.32 + 5624.731 = ₩30,074 Mil.

Total Receivables was ₩240,675 Mil.
Revenue was 89601.19 + 228694.612 + 112816.411 + 101619.881 = ₩532,732 Mil.
Gross Profit was 39407.38 + 68576.187 + 47686.857 + 48302.417 = ₩203,973 Mil.
Total Current Assets was ₩385,087 Mil.
Total Assets was ₩435,997 Mil.
Property, Plant and Equipment(Net PPE) was ₩14,684 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩11,575 Mil.
Selling, General, & Admin. Expense(SGA) was ₩20,546 Mil.
Total Current Liabilities was ₩262,633 Mil.
Long-Term Debt & Capital Lease Obligation was ₩5,154 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)
	=	(264478.777 / 545033.907)	/	(240675.486 / 532732.094)
	=	0.485252	/	0.451776
	=	1.0741

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)
	=	(203972.841 / 532732.094)	/	(223252.217 / 545033.907)
	=	0.382881	/	0.409612
	=	0.9347

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 - (393750.959 + 12381.412) / 437730.078)	/	(1 - (385086.573 + 14684.396) / 435996.533)
	=	0.072185	/	0.083087
	=	0.8688

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
	=	545033.907	/	532732.094
	=	1.0231

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))
	=	(11575.347 / (11575.347 + 14684.396))	/	(10321.799 / (10321.799 + 12381.412))
	=	0.440802	/	0.45464
	=	0.9696

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)
	=	(22600.52 / 545033.907)	/	(20545.543 / 532732.094)
	=	0.041466	/	0.038566
	=	1.0752

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)
	=	((4351.217 + 258212.292) / 437730.078)	/	((5154.29 + 262632.824) / 435996.533)
	=	0.59983	/	0.614196
	=	0.9766

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
	=	(13448.667 - 0	-	30074.37)	/	437730.078
	=	-0.037982

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.

HS Ad has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

HS Ad Beneish M-Score Related Terms

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

HS Ad (XKRX:035000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » HS Ad Inc (XKRX:035000) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

LG Mapo Building, 155, Mapo-daero, Mapo-gu, Seoul, KOR

Website

https://www.hsad.co.kr

HS Ad Inc formerly G2R Inc. was established in 1984 as an advertising agency. The company established a holding company in 2004 for the first time in Korea. There are more than 5 subsidiaries and overseas branches in the U.S., India, the U.K., etc.

HS Ad (XKRX:035000) Headlines

No Headlines