Cosmo Chemical Co (XKRX:005420) Beneish M-Score : 1.23 (As of May. 22, 2024)

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What is Cosmo Chemical 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 1.23 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XKRX:005420' s Beneish M-Score Range Over the Past 10 Years
Min: -8.4 Med: -2.26 Max: 7.83
Current: 1.23

During the past 13 years, the highest Beneish M-Score of Cosmo Chemical Co was 7.83. The lowest was -8.40. And the median was -2.26.

Cosmo Chemical Co Beneish M-Score Historical Data

The historical data trend for Cosmo Chemical 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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Cosmo Chemical Co Beneish M-Score Chart

Cosmo Chemical Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.62

-2.37

-1.76

-1.52

-2.14

Cosmo Chemical 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															-1.88	-2.26	-2.23	-2.14	1.23

Competitive Comparison of Cosmo Chemical Co's Beneish M-Score

For the Chemicals subindustry, Cosmo Chemical 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.

Cosmo Chemical Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Cosmo Chemical Co's Beneish M-Score distribution charts can be found below:

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

Cosmo Chemical 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 Cosmo Chemical 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

0.528 * 1.5106

0.404 * 11.8572

0.892 * 0.9029

0.115 * 0.0515

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5219

4.679 * 0.027619

0.327 * 0.5926

1.23

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩0 Mil.
Revenue was 159733.294 + 129284.534 + 194843.303 + 240663.773 = ₩724,525 Mil.
Gross Profit was 10333.389 + 885.263 + 16066.883 + 16114.584 = ₩43,400 Mil.
Total Current Assets was ₩320,148 Mil.
Total Assets was ₩1,098,108 Mil.
Property, Plant and Equipment(Net PPE) was ₩0 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩18,464 Mil.
Selling, General, & Admin. Expense(SGA) was ₩24,291 Mil.
Total Current Liabilities was ₩331,437 Mil.
Long-Term Debt & Capital Lease Obligation was ₩0 Mil.
Net Income was -6675.369 + -12129.307 + -3964.346 + -5228.358 = ₩-27,997 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 0 + -69852.546 + 17396.504 + -5870.033 = ₩-58,326 Mil.

Total Receivables was ₩127,711 Mil.
Revenue was 234192.042 + 189890.25 + 190674.596 + 187680.678 = ₩802,438 Mil.
Gross Profit was 13507.982 + 11902.408 + 20400.088 + 26798.205 = ₩72,609 Mil.
Total Current Assets was ₩404,088 Mil.
Total Assets was ₩932,347 Mil.
Property, Plant and Equipment(Net PPE) was ₩472,552 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩25,646 Mil.
Selling, General, & Admin. Expense(SGA) was ₩17,677 Mil.
Total Current Liabilities was ₩418,695 Mil.
Long-Term Debt & Capital Lease Obligation was ₩56,141 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)
	=	(0 / 724524.904)	/	(127710.998 / 802437.566)
	=	0	/	0.159154
	=	0

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)
	=	(72608.683 / 802437.566)	/	(43400.119 / 724524.904)
	=	0.090485	/	0.059901
	=	1.5106

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 - (320148.43 + 0) / 1098107.958)	/	(1 - (404088.361 + 472551.963) / 932347.404)
	=	0.708455	/	0.059749
	=	11.8572

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
	=	724524.904	/	802437.566
	=	0.9029

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))
	=	(25646.198 / (25646.198 + 472551.963))	/	(18463.578 / (18463.578 + 0))
	=	0.051478	/	1
	=	0.0515

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)
	=	(24291.355 / 724524.904)	/	(17677.038 / 802437.566)
	=	0.033527	/	0.022029
	=	1.5219

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 + 331437.036) / 1098107.958)	/	((56140.577 + 418694.816) / 932347.404)
	=	0.301826	/	0.50929
	=	0.5926

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
	=	(-27997.38 - 0	-	-58326.075)	/	1098107.958
	=	0.027619

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.

Cosmo Chemical Co has a M-score of 1.23 signals that the company is likely to be a manipulator.

Cosmo Chemical Co Beneish M-Score Related Terms

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Cosmo Chemical Co (XKRX:005420) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Cosmo Chemical Co Ltd (XKRX:005420) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

6, Gaseok-ro, Seo-gu, Incheon, KOR, 689-892

Website

http://www.cosmochem.co.kr

Cosmo Chemical Co Ltd manufactures titanium dioxide anatase in Korea. The company has been producing products for industries such as the fiber industry, food industry, and electronic industry, apart from its generic products.

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