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NTT DoCoMo Inc (NYSE:DCM)
Beneish M-Score
-2.99 (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 -3.17 suggests that the company is not a manipulator.

DCM' s 10-Year Beneish M-Score Range
Min: -7.49   Max: -1.34
Current: -2.99

-7.49
-1.34

During the past 13 years, the highest Beneish M-Score of NTT DoCoMo Inc was -1.34. The lowest was -7.49. And the median was -3.06.


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 * 0.8463+0.528 * 1.0815+0.404 * 0.9411+0.892 * 0.8599+0.115 * 1.0283
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9656+4.679 * -0.0911-0.327 * 1.0883
=-3.17

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 1364.25727417 + 234.578822122 + 1025.18116747 + 1146.28994738 = $3,770 Mil.
Non Operating Income was 43.2352128136 + -26.5211450689 + 27.3039716468 + 14.4378859063 = $58 Mil.
Cash Flow from Operations was 2213.07062964 + 2205.82335572 + 1450.54654037 + 3051.96056437 = $8,921 Mil.
Accounts Receivable was $1,851 Mil.
Revenue was 10535.6794682 + 10725.4152824 + 11256.4566016 + 10940.3991533 = $43,458 Mil.
Gross Profit was 6196.76689571 + 6081.62986125 + 6162.84554417 + 6764.37859087 = $25,206 Mil.
Total Current Assets was $22,684 Mil.
Total Assets was $71,146 Mil.
Property, Plant and Equipment(Net PPE) was $24,933 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,066 Mil.
Selling, General & Admin. Expense(SGA) was $10,452 Mil.
Total Current Liabilities was $9,331 Mil.
Long-Term Debt was $2,161 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)
=(1346.97612162 / 37367.973388) / (1851.10358416 / 43457.9505055)
=0.03604627 / 0.04259528
=0.8463

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)
=(4284.43159779 / 43457.9505055) / (4950.1772571 / 37367.973388)
=0.58000022 / 0.53628645
=1.0815

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 - (19493.1077461 + 19882.2731586) / 57167.3701448) / (1 - (22683.8253665 + 24933.0069986) / 71145.6464592)
=0.3112263 / 0.33071334
=0.9411

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
=37367.973388 / 43457.9505055
=0.8599

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))
=(7066.19156528 / (7066.19156528 + 24933.0069986)) / (5437.08442266 / (5437.08442266 + 19882.2731586))
=0.22082402 / 0.21474022
=1.0283

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)
=(8678.36324228 / 37367.973388) / (10452.050388 / 43457.9505055)
=0.23224067 / 0.24050951
=0.9656

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)
=((1781.21963876 + 8267.68974107) / 57167.3701448) / ((2161.11829078 + 9330.66765691) / 71145.6464592)
=0.17578051 / 0.16152479
=1.0883

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
=(3770.30721114 - 58.4559252977 - 8921.40109009) / 57167.3701448
=-0.0911

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 -3.17 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 0.98811.43380.79621.29331.04150.91781.49690.2131.1030.9528
GMI 1.00931.04191.00270.94490.98560.99351.0091.03551.02961.0843
AQI 1.22020.92961.06761.17181.01841.00670.951.13830.95940.9623
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 1.0020.8650.98511.02940.88330.84760.94650.93771.0550.9829
TATA 0.0125-0.0858-0.1712-0.1008-0.1027-0.116-0.0936-0.0611-0.0732-0.078
M-score -2.29-3.91-3.30-2.69-2.85-2.97-2.46-3.47-2.80-2.99

NTT DoCoMo Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.19511.16640.44860.97471.22970.941.02970.9270.90080.8463
GMI 1.03491.04061.01211.02071.02931.03171.07331.05761.08131.0815
AQI 1.13831.10331.09761.05020.95940.97541.03380.98950.96230.9411
SGI 1.00130.95370.87670.82490.82890.84440.89260.90940.88340.8599
DEPI 0.9290.90490.90970.95311.06041.06411.02970.98791.00811.0283
SGAI 1.00711.0080.99060.94920.93430.92780.92220.98520.98190.9656
LVGI 0.93771.03470.94590.93941.0550.9680.99061.11830.98291.0883
TATA -0.0645-0.0779-0.0901-0.0832-0.0747-0.0728-0.0774-0.0988-0.0831-0.0911
M-score -3.44-2.69-3.46-2.99-2.77-2.98-2.84-3.10-3.03-3.17
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