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NTT DoCoMo Inc (NYSE:DCM)
Beneish M-Score
-2.71 (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 -2.85 suggests that the company is not a manipulator.

DCM' s 10-Year Beneish M-Score Range
Min: -7.56   Max: -1.37
Current: -2.71

-7.56
-1.37

During the past 13 years, the highest Beneish M-Score of NTT DoCoMo Inc was -1.37. The lowest was -7.56. And the median was -2.98.


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 * 1.1235+0.528 * 1.0211+0.404 * 1.0502+0.892 * 0.8266+0.115 * 0.9968
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.947+4.679 * -0.0821-0.327 * 0.9394
=-2.85

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $14,486 Mil.
Revenue was 11223.8027775 + 11101.5342129 + 11172.263301 + 11245.3916815 = $44,743 Mil.
Gross Profit was 6144.96776245 + 6864.00736422 + 6875.2721399 + 6660.79502445 = $26,545 Mil.
Total Current Assets was $22,075 Mil.
Total Assets was $69,814 Mil.
Property, Plant and Equipment(Net PPE) was $24,393 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,239 Mil.
Selling, General & Admin. Expense(SGA) was $11,057 Mil.
Total Current Liabilities was $9,266 Mil.
Long-Term Debt was $2,128 Mil.
Net Income was 1250.71076801 + 1456.38743991 + 1585.27384547 + 809.621718939 = $5,102 Mil.
Non Operating Income was 60.7550042887 + 35.6653370154 + 50.8161688722 + 77.0371734283 = $224 Mil.
Cash Flow from Operations was 794.76874741 + 3457.87051243 + 2423.69548423 + 3934.58335891 = $10,611 Mil.
Accounts Receivable was $15,599 Mil.
Revenue was 13064.2390352 + 14365.2183818 + 13584.3542155 + 13117.8186383 = $54,132 Mil.
Gross Profit was 7754.62058434 + 8539.51881336 + 8647.6214607 + 7850.89597795 = $32,793 Mil.
Total Current Assets was $25,146 Mil.
Total Assets was $79,086 Mil.
Property, Plant and Equipment(Net PPE) was $28,757 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,499 Mil.
Selling, General & Admin. Expense(SGA) was $14,125 Mil.
Total Current Liabilities was $12,501 Mil.
Long-Term Debt was $1,238 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)
=(14486.3098852 / 44742.991973) / (15599.1600979 / 54131.6302708)
=0.32376713 / 0.28817089
=1.1235

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)
=(6864.00736422 / 54131.6302708) / (6144.96776245 / 44742.991973)
=0.60579474 / 0.59327821
=1.0211

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 - (22075.1149276 + 24393.461898) / 69813.7932364) / (1 - (25146.4326619 + 28757.3379146) / 79085.7867906)
=0.33439261 / 0.31841393
=1.0502

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
=44742.991973 / 54131.6302708
=0.8266

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))
=(8499.26832615 / (8499.26832615 + 28757.3379146)) / (7239.4239816 / (7239.4239816 + 24393.461898))
=0.22812782 / 0.22885753
=0.9968

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)
=(11056.5575749 / 44742.991973) / (14124.7759915 / 54131.6302708)
=0.24711261 / 0.26093387
=0.947

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)
=((2127.78404217 + 9265.51401779) / 69813.7932364) / ((1237.62042714 + 12501.1790069) / 79085.7867906)
=0.16319552 / 0.17372021
=0.9394

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
=(5101.99377234 - 224.273683605 - 10610.918103) / 69813.7932364
=-0.0821

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 -2.85 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

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 0.81091.19240.8581.43380.79621.40841.10280.96741.29451.1022
GMI 1.031.04321.00931.04191.00270.94490.98560.99351.0091.0355
AQI 0.98490.75481.22020.92961.06761.17181.01841.00670.951.1383
SGI 1.17080.96360.90020.99121.13730.97991.01961.10781.02750.8763
DEPI 1.03860.97851.02631.02540.95120.93471.08560.98341.01360.9899
SGAI 0.98231.03060.09689.56590.92291.0111.0730.99420.96511.0092
LVGI 0.960.85961.0020.8650.98511.02940.88330.84760.94650.9377
TATA -0.1673-0.14230.0125-0.0858-0.1712-0.1008-0.1022-0.1164-0.0936-0.0611
M-score -3.25-3.04-2.39-3.92-3.30-2.57-2.81-2.91-2.61-2.69

NTT DoCoMo Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.96961.00861.2420.61340.76861.07590.99852.0930.92441.1235
GMI 0.99630.99971.00891.02241.03561.04011.03431.04041.01171.0211
AQI 1.00380.97980.950.98240.98321.05311.13831.10331.09761.0502
SGI 1.07881.07531.07091.06211.04911.01920.96730.91640.84920.8266
DEPI 0.95070.97870.98320.98990.97840.91870.92140.91250.95180.9968
SGAI 1.03741.03880.96430.98070.94890.9771.00711.00830.99070.947
LVGI 0.82390.80390.94650.86680.98181.0030.93771.03470.94590.9394
TATA -0.1117-0.1141-0.0958-0.0803-0.0581-0.0721-0.0647-0.0776-0.0872-0.0821
M-score -2.92-2.89-2.64-3.11-2.90-2.69-2.73-1.87-3.03-2.85
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