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NTT DoCoMo Inc (NYSE:DCM)
Beneish M-Score
-3.23 (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 -3.27 suggests that the company is not a manipulator.

DCM' s 10-Year Beneish M-Score Range
Min: -7.56   Max: -1.37
Current: -3.23

-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 * 0.5948+0.528 * 1.0315+0.404 * 0.9754+0.892 * 0.8751+0.115 * 1.059
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9275+4.679 * -0.0729-0.327 * 0.968
=-3.27

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $7,185 Mil.
Revenue was 10584.3061598 + 10713.0629136 + 11223.8027775 + 11101.5342129 = $43,623 Mil.
Gross Profit was 6225.36763982 + 6074.62570029 + 6144.96776245 + 6864.00736422 = $25,309 Mil.
Total Current Assets was $22,789 Mil.
Total Assets was $71,474 Mil.
Property, Plant and Equipment(Net PPE) was $25,048 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,092 Mil.
Selling, General & Admin. Expense(SGA) was $10,494 Mil.
Total Current Liabilities was $9,374 Mil.
Long-Term Debt was $2,171 Mil.
Net Income was 1342.41195346 + 337.250385524 + 1250.71076801 + 1456.38743991 = $4,387 Mil.
Non Operating Income was 26.6748036301 + -14.4059029066 + 60.7550042887 + 35.6653370154 = $109 Mil.
Cash Flow from Operations was 1933.82483218 + 3304.01725585 + 794.76874741 + 3457.87051243 = $9,490 Mil.
Accounts Receivable was $13,804 Mil.
Revenue was 11172.263301 + 11245.3916815 + 13064.2390352 + 14365.2183818 = $49,847 Mil.
Gross Profit was 6875.2721399 + 6660.79502445 + 7754.62058434 + 8539.51881336 = $29,830 Mil.
Total Current Assets was $21,450 Mil.
Total Assets was $71,179 Mil.
Property, Plant and Equipment(Net PPE) was $25,595 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,804 Mil.
Selling, General & Admin. Expense(SGA) was $12,929 Mil.
Total Current Liabilities was $10,162 Mil.
Long-Term Debt was $1,715 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)
=(7185.37512058 / 43622.7060639) / (13803.6378959 / 49847.1123995)
=0.1647164 / 0.27691951
=0.5948

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)
=(6074.62570029 / 49847.1123995) / (6225.36763982 / 43622.7060639)
=0.59843399 / 0.58017878
=1.0315

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 - (22788.5209756 + 25048.0835482) / 71474.0142134) / (1 - (21449.6503567 + 25595.0658654) / 71179.2862661)
=0.33071334 / 0.33906732
=0.9754

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
=43622.7060639 / 49847.1123995
=0.8751

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))
=(7804.48636221 / (7804.48636221 + 25595.0658654)) / (7092.01592251 / (7092.01592251 + 25048.0835482))
=0.23367039 / 0.22065943
=1.059

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)
=(10494.1005701 / 43622.7060639) / (12928.7380432 / 49847.1123995)
=0.2405651 / 0.25936784
=0.9275

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)
=((2171.09278107 + 9373.73270075) / 71474.0142134) / ((1715.18866694 + 10161.9796735) / 71179.2862661)
=0.16152479 / 0.16686271
=0.968

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
=(4386.76054691 - 108.689242028 - 9490.48134786) / 71474.0142134
=-0.0729

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 -3.27 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 1.19240.8581.43380.79621.40841.10280.96741.29451.10221.1668
GMI 1.04321.00931.04191.00270.94490.98560.99351.0091.03551.0296
AQI 0.75481.22020.92961.06761.17181.01841.00670.951.11980.9753
SGI 0.96360.90020.99121.13730.97991.01961.10781.02750.87630.9522
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 0.85961.0020.8650.98511.02940.88330.84760.94650.94541.0464
TATA -0.14230.0125-0.0858-0.1712-0.1008-0.1022-0.1164-0.0936-0.0611-0.0732
M-score -3.04-2.39-3.92-3.30-2.57-2.81-2.91-2.61-2.70-2.71

NTT DoCoMo Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.2420.61340.76861.07590.99852.0930.92441.12351.31340.5948
GMI 1.00891.02241.03561.04011.03431.04041.01171.02111.02991.0315
AQI 0.950.98240.98321.05311.11981.10331.09761.05020.97530.9754
SGI 1.07091.06211.04911.01920.96730.91640.84920.82660.8460.8751
DEPI 0.98320.98990.97840.91870.92140.91250.95180.99681.06741.059
SGAI 0.96430.98070.94890.9771.00711.00830.99070.9470.93440.9275
LVGI 0.94650.86680.98181.0030.94541.03470.94590.93941.04640.968
TATA -0.0958-0.0803-0.0581-0.0721-0.0647-0.0771-0.0867-0.0816-0.0748-0.0729
M-score -2.64-3.11-2.90-2.69-2.74-1.87-3.03-2.84-2.67-3.27
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