Switch to:
NTT DoCoMo Inc (NYSE:DCM)
Beneish M-Score
-2.76 (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 -2.84 suggests that the company is not a manipulator.

DCM' s 10-Year Beneish M-Score Range
Min: -7.39   Max: -1.34
Current: -2.76

-7.39
-1.34

During the past 13 years, the highest Beneish M-Score of NTT DoCoMo Inc was -1.34. The lowest was -7.39. And the median was -3.07.


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 * 1.0297+0.528 * 1.0733+0.404 * 1.0338+0.892 * 0.8926+0.115 * 1.0297
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9222+4.679 * -0.0774-0.327 * 0.9906
=-2.84

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,762 Mil.
Revenue was 10217.98322 + 10535.6794682 + 10725.4152824 + 11256.4566016 = $42,736 Mil.
Gross Profit was 5613.69392985 + 6196.76689571 + 6081.62986125 + 6162.84554417 = $24,055 Mil.
Total Current Assets was $19,861 Mil.
Total Assets was $65,859 Mil.
Property, Plant and Equipment(Net PPE) was $23,571 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,782 Mil.
Selling, General & Admin. Expense(SGA) was $10,092 Mil.
Total Current Liabilities was $8,865 Mil.
Long-Term Debt was $2,053 Mil.
Net Income was 1146.28994738 + 1336.24460994 + 337.639241743 + 1254.34950706 = $4,075 Mil.
Non Operating Income was 14.4378859063 + 26.5522535613 + -14.4225131913 + 60.9317610671 = $87 Mil.
Cash Flow from Operations was 3051.96056437 + 1924.9404044 + 3307.82685167 + 797.080997487 = $9,082 Mil.
Accounts Receivable was $1,918 Mil.
Revenue was 10940.3991533 + 11452.3885432 + 11599.9472407 + 13885.4411572 = $47,878 Mil.
Gross Profit was 6764.37859087 + 7047.65773641 + 6870.80299673 + 8242.0665704 = $28,925 Mil.
Total Current Assets was $23,577 Mil.
Total Assets was $73,398 Mil.
Property, Plant and Equipment(Net PPE) was $25,644 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,663 Mil.
Selling, General & Admin. Expense(SGA) was $12,260 Mil.
Total Current Liabilities was $10,562 Mil.
Long-Term Debt was $1,722 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)
=(1762.4925879 / 42735.5345723) / (1917.61919161 / 47878.1760944)
=0.04124185 / 0.04005205
=1.0297

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)
=(6196.76689571 / 47878.1760944) / (5613.69392985 / 42735.5345723)
=0.6041355 / 0.56287903
=1.0733

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 - (19861.4949682 + 23570.8401248) / 65859.4637968) / (1 - (23577.4518698 + 25644.0177401) / 73398.1856668)
=0.34053008 / 0.32939119
=1.0338

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
=42735.5345723 / 47878.1760944
=0.8926

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))
=(7663.20296944 / (7663.20296944 + 25644.0177401)) / (6782.36402129 / (6782.36402129 + 23570.8401248))
=0.23007633 / 0.22344804
=1.0297

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)
=(10091.8426555 / 42735.5345723) / (12259.6006649 / 47878.1760944)
=0.2361464 / 0.25605822
=0.9222

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)
=((2052.58145863 + 8865.47632457) / 65859.4637968) / ((1721.68128213 + 10561.7982058) / 73398.1856668)
=0.16577812 / 0.16735399
=0.9906

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
=(4074.52330612 - 87.4993873433 - 9081.80881793) / 65859.4637968
=-0.0774

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 -2.84 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 1.03540.98811.43380.79621.29331.04150.91781.49690.2131.103
GMI 1.04321.00931.04191.00270.94490.98560.99351.0091.03551.0296
AQI 0.75481.22020.92961.06761.17181.01841.00670.951.13830.9594
SGI 0.98920.88241.00721.14270.9721.0391.09550.99380.91740.9242
DEPI 0.97851.02631.02540.95120.93471.08560.98341.01360.98990.979
SGAI 1.03060.09689.56590.92291.0111.0730.99420.96511.00920.9302
LVGI 0.85961.0020.8650.98511.02940.88330.84760.94650.93771.055
TATA -0.14230.0125-0.0858-0.1712-0.1008-0.1027-0.116-0.0936-0.0611-0.0732
M-score -3.16-2.29-3.91-3.30-2.69-2.85-2.97-2.46-3.47-2.80

NTT DoCoMo Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.21950.41420.21190.19511.16640.44860.97471.22970.941.0297
GMI 1.02191.03551.04031.03491.04061.01211.02071.02931.03171.0733
AQI 0.98240.98321.05311.13831.10331.09761.05020.95940.97541.0338
SGI 1.06351.04651.03561.00130.95370.87670.82490.82890.84440.8926
DEPI 0.99820.9920.96130.9290.90490.90970.95311.06041.06411.0297
SGAI 0.97760.94730.9741.00711.0080.99060.94920.93430.92780.9222
LVGI 0.86680.98181.0030.93771.03470.94590.93941.0550.9680.9906
TATA -0.08-0.0569-0.0675-0.0645-0.0779-0.0901-0.0832-0.0747-0.0728-0.0774
M-score -3.46-3.22-3.45-3.44-2.69-3.46-2.99-2.77-2.98-2.84
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK