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NTT DoCoMo Inc (NYSE:DCM)
Beneish M-Score
-2.86 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

NTT DoCoMo Inc has a M-score of -3.03 suggests that the company is not a manipulator.

DCM' s 10-Year Beneish M-Score Range
Min: -7.49   Max: -2.19
Current: -2.86

-7.49
-2.19

During the past 13 years, the highest Beneish M-Score of NTT DoCoMo Inc was -2.19. The lowest was -7.49. And the median was -2.91.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 NTT DoCoMo Inc 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 * 0.9008+0.528 * 1.0813+0.404 * 0.9623+0.892 * 0.8834+0.115 * 1.0081
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9819+4.679 * -0.0831-0.327 * 0.9829
=-3.03

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $2,149 Mil.
Revenue was 8776.28961456 + 9669.5699834 + 10217.9739113 + 10535.6794682 = $39,200 Mil.
Gross Profit was 4284.43159779 + 5191.6348274 + 5613.69392985 + 6196.76689571 = $21,287 Mil.
Total Current Assets was $20,062 Mil.
Total Assets was $59,358 Mil.
Property, Plant and Equipment(Net PPE) was $20,857 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,898 Mil.
Selling, General & Admin. Expense(SGA) was $9,312 Mil.
Total Current Liabilities was $9,255 Mil.
Long-Term Debt was $1,831 Mil.
Net Income was 234.578822122 + 1025.18116747 + 1146.28994738 + 1336.24460994 = $3,742 Mil.
Non Operating Income was -26.5211450689 + 27.3039716468 + 14.4378859063 + 26.5522535613 = $42 Mil.
Cash Flow from Operations was 2205.82335572 + 1450.54654037 + 3051.96056437 + 1924.9404044 = $8,633 Mil.
Accounts Receivable was $2,701 Mil.
Revenue was 10725.4152824 + 11256.4566016 + 10940.3991533 + 11452.3885432 = $44,375 Mil.
Gross Profit was 6081.62986125 + 6162.84554417 + 6764.37859087 + 7047.65773641 = $26,057 Mil.
Total Current Assets was $24,690 Mil.
Total Assets was $73,364 Mil.
Property, Plant and Equipment(Net PPE) was $24,993 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,142 Mil.
Selling, General & Admin. Expense(SGA) was $10,736 Mil.
Total Current Liabilities was $11,784 Mil.
Long-Term Debt was $2,156 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(2149.27592207 / 39199.5129775) / (2700.88919289 / 44374.6595805)
=0.05482915 / 0.06086558
=0.9008

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)
=(5191.6348274 / 44374.6595805) / (4284.43159779 / 39199.5129775)
=0.5871935 / 0.5430304
=1.0813

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (20062.1789201 + 20856.9909755) / 59357.6949113) / (1 - (24689.876881 + 24992.8278288) / 73363.5919484)
=0.31063411 / 0.322788
=0.9623

4. SGI = Sales Growth Index

Ratio of sales 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
=39199.5129775 / 44374.6595805
=0.8834

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(7141.93885775 / (7141.93885775 + 24992.8278288)) / (5898.48536732 / (5898.48536732 + 20856.9909755))
=0.22224959 / 0.22045899
=1.0081

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(9312.18906416 / 39199.5129775) / (10736.1501844 / 44374.6595805)
=0.23755879 / 0.24194327
=0.9819

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1830.64841002 + 9255.42279755) / 59357.6949113) / ((2155.58921243 + 11784.1117842) / 73363.5919484)
=0.18676721 / 0.19000843
=0.9829

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
=(3742.29454691 - 41.7729660454 - 8633.27086485) / 59357.6949113
=-0.0831

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

NTT DoCoMo Inc has a M-score of -3.03 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

NTT DoCoMo Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.98811.43380.79621.29331.04151.10261.06150.251.1030.9528
GMI 1.00931.04191.00270.94490.98560.99351.0091.03551.02961.0843
AQI 1.22020.92961.06761.17181.01841.00670.951.11980.97530.9623
SGI 0.88241.00721.14270.9721.0391.09550.99380.91740.92420.8352
DEPI 1.02631.02540.95120.93471.08560.98341.01360.98990.9791.0542
SGAI 0.09689.56590.92291.0111.0730.99420.96511.00920.93020.9831
LVGI 1.0020.8650.98511.02940.88330.84760.94650.94541.04640.9829
TATA 0.0125-0.0858-0.1712-0.1008-0.1022-0.1164-0.0936-0.0611-0.0732-0.078
M-score -2.29-3.91-3.30-2.69-2.85-2.80-2.86-3.45-2.80-2.99

NTT DoCoMo Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.21190.2291.16640.44860.97471.22970.941.02970.9270.9008
GMI 1.04031.03491.04061.01211.02071.02931.03171.07331.05761.0813
AQI 1.05311.11981.10331.09761.05020.97530.97541.03380.98950.9623
SGI 1.03561.00130.95370.87670.82490.82890.84440.89260.90940.8834
DEPI 0.96130.9290.90490.90970.95311.06041.06411.02970.98791.0081
SGAI 0.9741.00711.0080.99060.94920.93430.92780.92220.98520.9819
LVGI 1.0030.94541.03470.94590.93941.04640.9680.99061.11830.9829
TATA -0.0675-0.0645-0.0773-0.0895-0.0826-0.0747-0.0728-0.0774-0.0988-0.0831
M-score -3.45-3.41-2.69-3.46-2.99-2.76-2.98-2.84-3.10-3.03
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