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NTT DOCOMO Inc (NYSE:DCM)
Beneish M-Score
-2.89 (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 -2.69 suggests that the company is not a manipulator.

DCM' s Beneish M-Score Range Over the Past 10 Years
Min: -6.89   Max: -2.27
Current: -2.89

-6.89
-2.27

During the past 13 years, the highest Beneish M-Score of NTT DOCOMO Inc was -2.27. The lowest was -6.89. And the median was -3.04.


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 * 1.0467+0.528 * 1.0032+0.404 * 0.9876+0.892 * 1.0632+0.115 * 1.1826
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9339+4.679 * -0.0761-0.327 * 0.957
=-2.69

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,499 Mil.
Revenue was 10523.593059 + 10126.6871923 + 9606.38796399 + 9472.70690384 = $39,729 Mil.
Gross Profit was 6162.39633454 + 4743.45998511 + 5100.25897151 + 5231.67337508 = $21,238 Mil.
Total Current Assets was $22,536 Mil.
Total Assets was $65,811 Mil.
Property, Plant and Equipment(Net PPE) was $23,046 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,113 Mil.
Selling, General & Admin. Expense(SGA) was $8,616 Mil.
Total Current Liabilities was $8,981 Mil.
Long-Term Debt was $2,090 Mil.
Net Income was 1963.47634429 + 495.246241755 + 1441.31212233 + 1234.73960362 = $5,135 Mil.
Non Operating Income was -37.1520319238 + 19.0203459259 + 18.2924322769 + -126.511058065 = $-126 Mil.
Cash Flow from Operations was 2314.11407022 + 3225.67534182 + 1866.11583837 + 2863.70264575 = $10,270 Mil.
Accounts Receivable was $1,347 Mil.
Revenue was 8704.13987872 + 8776.28961456 + 9669.5699834 + 10217.9739113 = $37,368 Mil.
Gross Profit was 4950.1772571 + 4284.43159779 + 5191.6348274 + 5613.69392985 = $20,040 Mil.
Total Current Assets was $19,493 Mil.
Total Assets was $57,167 Mil.
Property, Plant and Equipment(Net PPE) was $19,882 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,437 Mil.
Selling, General & Admin. Expense(SGA) was $8,678 Mil.
Total Current Liabilities was $8,268 Mil.
Long-Term Debt was $1,781 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)
=(1498.9525481 / 39729.3751192) / (1346.97612162 / 37367.973388)
=0.03772907 / 0.03604627
=1.0467

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)
=(20039.9376121 / 37367.973388) / (21237.7886662 / 39729.3751192)
=0.53628645 / 0.53456136
=1.0032

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 - (22536.190958 + 23045.7926795) / 65810.8853365) / (1 - (19493.1077461 + 19882.2731586) / 57167.3701448)
=0.30737927 / 0.3112263
=0.9876

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
=39729.3751192 / 37367.973388
=1.0632

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))
=(5437.08442266 / (5437.08442266 + 19882.2731586)) / (5113.03105648 / (5113.03105648 + 23045.7926795))
=0.21474022 / 0.18157829
=1.1826

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)
=(8616.47625698 / 39729.3751192) / (8678.36324228 / 37367.973388)
=0.21687923 / 0.23224067
=0.9339

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)
=((2089.87298637 + 8981.28065351) / 65810.8853365) / ((1781.21963876 + 8267.68974107) / 57167.3701448)
=0.16822678 / 0.17578051
=0.957

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
=(5134.774312 - -126.350311786 - 10269.6078962) / 65810.8853365
=-0.0761

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 -2.69 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 1.43380.79621.29331.04151.10261.06150.251.1030.95280.8707
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 1.00721.14270.9721.0391.09550.99380.91740.92420.83521.101
DEPI 1.02540.95120.93471.08560.98341.01360.99040.97861.05421.0193
SGAI 9.56590.92291.0111.0730.99420.96511.00920.93020.98310.9099
LVGI 0.8650.98511.02940.88330.84760.94650.94541.04640.98291.0688
TATA -0.0864-0.1712-0.1008-0.1027-0.1164-0.0936-0.0611-0.0732-0.078-0.0908
M-score -3.91-3.30-2.69-2.85-2.80-2.86-3.45-2.80-2.99-2.94

NTT DOCOMO Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.22970.941.02970.9270.90080.84631.06331.0650.99131.0467
GMI 1.02931.03171.07331.05761.08131.08151.04861.04821.0281.0032
AQI 0.97530.97541.03380.98950.96230.94110.88530.92140.97880.9876
SGI 0.82890.84440.89260.90940.88340.85990.8570.88850.96711.0632
DEPI 1.061.06361.02920.98741.00811.02831.08811.12681.12821.1826
SGAI 0.93430.92780.92220.98520.98190.96560.96750.90570.91130.9339
LVGI 1.04640.9680.99061.11830.98291.08831.04560.941.06880.957
TATA -0.0747-0.0728-0.0774-0.0988-0.0831-0.0911-0.0796-0.08-0.0875-0.0761
M-score -2.76-2.98-2.84-3.10-3.03-3.17-2.94-2.85-2.91-2.69
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