Dongkuk Industries Co (XKRX:005160) Beneish M-Score : -2.36 (As of May. 10, 2024)

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What is Dongkuk Industries 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:005160' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15 Med: -2.71 Max: -1.4
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Dongkuk Industries Co was -1.40. The lowest was -3.15. And the median was -2.71.

Dongkuk Industries Co Beneish M-Score Historical Data

The historical data trend for Dongkuk Industries 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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Dongkuk Industries Co Beneish M-Score Chart

Dongkuk Industries Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.93

-3.15

-2.07

-1.40

-2.36

Dongkuk Industries 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															-1.40	-1.60	-2.10	-1.99	-2.36

Competitive Comparison of Dongkuk Industries Co's Beneish M-Score

For the Steel subindustry, Dongkuk Industries 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.

Dongkuk Industries Co's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Dongkuk Industries Co's Beneish M-Score distribution charts can be found below:

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

Dongkuk Industries 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 Dongkuk Industries 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 * 1.3286

0.528 * 1.0909

0.404 * 0.9762

0.892 * 0.8797

0.115 * 1.1784

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0822

4.679 * -0.014764

0.327 * 1.1697

-2.36

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ₩171,563 Mil.
Revenue was 201212.139 + 180666.712 + 185507.113 + 189624.108 = ₩757,010 Mil.
Gross Profit was 24045.504 + 15877.565 + 11542.796 + 5592.459 = ₩57,058 Mil.
Total Current Assets was ₩409,196 Mil.
Total Assets was ₩892,651 Mil.
Property, Plant and Equipment(Net PPE) was ₩305,833 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩20,420 Mil.
Selling, General, & Admin. Expense(SGA) was ₩30,884 Mil.
Total Current Liabilities was ₩301,477 Mil.
Long-Term Debt & Capital Lease Obligation was ₩39,417 Mil.
Net Income was 2958.916 + 2654.238 + -7499.294 + -3224.955 = ₩-5,111 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was -12176.519 + 7100.318 + 51966.458 + -38822.623 = ₩8,068 Mil.

Total Receivables was ₩146,787 Mil.
Revenue was 182061.62 + 172280.146 + 285329.645 + 220858.124 = ₩860,530 Mil.
Gross Profit was 325.786 + 12394.769 + 39086.256 + 18946.78 = ₩70,754 Mil.
Total Current Assets was ₩409,370 Mil.
Total Assets was ₩874,777 Mil.
Property, Plant and Equipment(Net PPE) was ₩287,105 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩22,863 Mil.
Selling, General, & Admin. Expense(SGA) was ₩32,440 Mil.
Total Current Liabilities was ₩282,582 Mil.
Long-Term Debt & Capital Lease Obligation was ₩3,010 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)
	=	(171562.852 / 757010.072)	/	(146787.414 / 860529.535)
	=	0.226632	/	0.170578
	=	1.3286

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)
	=	(70753.591 / 860529.535)	/	(57058.324 / 757010.072)
	=	0.082221	/	0.075373
	=	1.0909

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 - (409195.945 + 305832.781) / 892650.628)	/	(1 - (409370.153 + 287105.372) / 874777.32)
	=	0.198983	/	0.203825
	=	0.9762

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
	=	757010.072	/	860529.535
	=	0.8797

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))
	=	(22863.207 / (22863.207 + 287105.372))	/	(20420.471 / (20420.471 + 305832.781))
	=	0.07376	/	0.062591
	=	1.1784

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)
	=	(30884.311 / 757010.072)	/	(32440.454 / 860529.535)
	=	0.040798	/	0.037698
	=	1.0822

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)
	=	((39417.42 + 301476.989) / 892650.628)	/	((3009.522 + 282582.237) / 874777.32)
	=	0.38189	/	0.326474
	=	1.1697

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
	=	(-5111.095 - 0	-	8067.634)	/	892650.628
	=	-0.014764

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.

Dongkuk Industries Co has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.

Dongkuk Industries Co Beneish M-Score Related Terms

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Dongkuk Industries Co (XKRX:005160) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Dongkuk Industries Co Ltd (XKRX:005160) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Dadong Gil 46, Chung gu, Seoul, KOR

Website

http://www.dkis.co.kr

Dongkuk Industries Co Ltd is a cold rolled steel company. It is mainly engaged in the manufacturing and marketing of steel products. The company supplies its products to both domestic and international car makers as well as to global automobile parts companies.

Dongkuk Industries Co (XKRX:005160) Headlines

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