LG Energy Solution Beneish M-Score Historical Data
The historical data trend for LG Energy Solution'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.
LG Energy Solution Beneish M-Score Chart
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LG Energy Solution Annual Data
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Trend |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
-2.57 |
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LG Energy Solution Quarterly Data
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Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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- |
-1.46 |
-1.82 |
-2.27 |
-2.57 |
Competitive Comparison of LG Energy Solution's Beneish M-Score
For the Specialty Industrial Machinery subindustry, LG Energy Solution'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.
LG Energy Solution's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, LG Energy Solution's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where LG Energy Solution's Beneish M-Score falls into.
LG Energy Solution 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 LG Energy Solution 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 * 0.823 | + | 0.528 * 1.1442 | + | 0.404 * 0.9259 | + | 0.892 * 1.3183 | + | 0.115 * 1.2172 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8152 | + | 4.679 * -0.070581 | - | 0.327 * 0.9424 |
| = | -2.57 |
* 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 ₩5,678,660 Mil.
Revenue was 8001324 + 8223542 + 8773487 + 8747117 = ₩33,745,470 Mil.
Gross Profit was 973178 + 1341569 + 1334076 + 1294210 = ₩4,943,033 Mil.
Total Current Assets was ₩17,208,396 Mil.
Total Assets was ₩45,437,144 Mil.
Property, Plant and Equipment(Net PPE) was ₩23,654,677 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩2,286,879 Mil.
Selling, General, & Admin. Expense(SGA) was ₩1,867,280 Mil.
Total Current Liabilities was ₩10,937,185 Mil.
Long-Term Debt & Capital Lease Obligation was ₩7,720,833 Mil.
Net Income was -23599 + 327741 + 432443 + 500595 = ₩1,237,180 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 2672017 + 475732 + 515550 + 780880 = ₩4,444,179 Mil.
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Total Receivables was ₩5,234,034 Mil.
Revenue was 8537543 + 7648157 + 5070561 + 4342348 = ₩25,598,609 Mil.
Gross Profit was 1298651 + 1394949 + 821827 + 775106 = ₩4,290,533 Mil.
Total Current Assets was ₩18,804,269 Mil.
Total Assets was ₩38,299,445 Mil.
Property, Plant and Equipment(Net PPE) was ₩15,331,047 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,842,713 Mil.
Selling, General, & Admin. Expense(SGA) was ₩1,737,557 Mil.
Total Current Liabilities was ₩11,444,923 Mil.
Long-Term Debt & Capital Lease Obligation was ₩5,242,552 Mil.
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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) |
| = | (5678660 / 33745470) | / | (5234034 / 25598609) |
| = | 0.168279 | / | 0.204466 |
| | = | 0.823 |
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) |
| = | (4290533 / 25598609) | / | (4943033 / 33745470) |
| = | 0.167608 | / | 0.14648 |
| | = | 1.1442 |
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 - (17208396 + 23654677) / 45437144) | / | (1 - (18804269 + 15331047) / 38299445) |
| = | 0.100668 | / | 0.108726 |
| | = | 0.9259 |
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 |
| = | 33745470 | / | 25598609 |
| | = | 1.3183 |
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)) |
| = | (1842713 / (1842713 + 15331047)) | / | (2286879 / (2286879 + 23654677)) |
| = | 0.107298 | / | 0.088155 |
| | = | 1.2172 |
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) |
| = | (1867280 / 33745470) | / | (1737557 / 25598609) |
| = | 0.055334 | / | 0.067877 |
| | = | 0.8152 |
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) |
| = | ((7720833 + 10937185) / 45437144) | / | ((5242552 + 11444923) / 38299445) |
| = | 0.410634 | / | 0.435711 |
| | = | 0.9424 |
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 |
| = | (1237180 - 0 | - | 4444179) | / | 45437144 |
| | = | -0.070581 |
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.
LG Energy Solution has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.
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