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NTT DOCOMO Inc (NYSE:DCM)
Beneish M-Score
-3.00 (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 -2.91 suggests that the company is not a manipulator.

DCM' s Beneish M-Score Range Over the Past 10 Years
Min: -6.89   Max: -2.71
Current: -3

-6.89
-2.71

During the past 13 years, the highest Beneish M-Score of NTT DOCOMO Inc was -2.71. The lowest was -6.89. And the median was -3.00.


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 * 0.9913+0.528 * 1.028+0.404 * 0.9788+0.892 * 0.9671+0.115 * 1.1282
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9113+4.679 * -0.0875-0.327 * 1.0688
=-2.91

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2,061 Mil.
Revenue was 10126.6871923 + 9606.38796399 + 9472.70690384 + 8704.13987872 = $37,910 Mil.
Gross Profit was 4743.45998511 + 5100.25897151 + 5231.67337508 + 4950.1772571 = $20,026 Mil.
Total Current Assets was $22,847 Mil.
Total Assets was $63,880 Mil.
Property, Plant and Equipment(Net PPE) was $21,609 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,248 Mil.
Selling, General & Admin. Expense(SGA) was $8,207 Mil.
Total Current Liabilities was $10,801 Mil.
Long-Term Debt was $1,950 Mil.
Net Income was 495.246241755 + 1441.31212233 + 1234.73960362 + 1364.25727417 = $4,536 Mil.
Non Operating Income was 19.0203459259 + 18.2924322769 + -126.511058065 + 43.2352128136 = $-46 Mil.
Cash Flow from Operations was 3225.67534182 + 1866.11583837 + 2863.70264575 + 2213.07062964 = $10,169 Mil.
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.



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)
=(2060.51976549 / 37909.9219389) / (2149.27592207 / 39199.5129775)
=0.05435305 / 0.05482915
=0.9913

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)
=(21286.5272507 / 39199.5129775) / (20025.5695888 / 37909.9219389)
=0.5430304 / 0.52824086
=1.028

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 - (22847.3758918 + 21609.3089894) / 63880.3276671) / (1 - (20062.1789201 + 20856.9909755) / 59357.6949113)
=0.30406298 / 0.31063411
=0.9788

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
=37909.9219389 / 39199.5129775
=0.9671

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))
=(5898.48536732 / (5898.48536732 + 20856.9909755)) / (5248.24458677 / (5248.24458677 + 21609.3089894))
=0.22045899 / 0.19541037
=1.1282

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)
=(8207.2755247 / 37909.9219389) / (9312.18906416 / 39199.5129775)
=0.21649413 / 0.23755879
=0.9113

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)
=((1949.85110469 + 10801.387033) / 63880.3276671) / ((1830.64841002 + 9255.42279755) / 59357.6949113)
=0.19961135 / 0.18676721
=1.0688

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
=(4535.55524188 - -45.9630670489 - 10168.5644556) / 63880.3276671
=-0.0875

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 -2.91 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

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 1.43670.79731.29151.04151.10261.06150.251.1030.95280.8707
GMI 1.04191.00270.94490.98560.99351.0091.03551.02961.08431.0215
AQI 0.92961.06761.17181.01841.00670.951.11980.97530.96230.9788
SGI 1.00511.14110.97331.0391.09550.99380.91740.92420.83521.101
DEPI 1.02710.95220.93361.08560.98341.01360.98990.9791.05421.0193
SGAI 0.95660.92291.0111.0730.99420.96511.00920.93020.98310.9099
LVGI 0.8650.98511.02940.88330.84760.94650.94541.04640.98291.0688
TATA -0.0864-0.171-0.1008-0.1027-0.1164-0.0936-0.0616-0.0732-0.078-0.0908
M-score -2.43-3.30-2.69-2.85-2.80-2.86-3.45-2.80-2.99-2.94

NTT DOCOMO Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.97471.22970.941.02970.9270.90080.84631.06331.0650.9913
GMI 1.02071.02931.03171.07331.05761.08131.08151.04861.04821.028
AQI 1.05020.97530.97541.03380.98950.96230.94110.88530.92140.9788
SGI 0.82490.82890.84440.89260.90940.88340.85990.8570.88850.9671
DEPI 0.95361.061.06361.02920.98741.00811.02831.08811.12681.1282
SGAI 0.94920.93430.92780.92220.98520.98190.96560.96750.90570.9113
LVGI 0.93941.04640.9680.99061.11830.98291.08831.04560.941.0688
TATA -0.0826-0.0747-0.0728-0.0774-0.0988-0.0831-0.0911-0.0796-0.08-0.0875
M-score -2.99-2.76-2.98-2.84-3.10-3.03-3.17-2.94-2.85-2.91
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