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Nintendo Co Ltd (OTCPK:NTDOY)
Beneish M-Score
0.00 (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.

Nintendo Co Ltd has a M-score of signals that the company is a manipulator.

NTDOY' s 10-Year Beneish M-Score Range
Min: -3.45   Max: -1.32
Current: 0

-3.45
-1.32

During the past 13 years, the highest Beneish M-Score of Nintendo Co Ltd was -1.32. The lowest was -3.45. And the median was -2.44.


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 Nintendo Co Ltd 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 $0 Mil.
Revenue was 2915.71977911 + 1176.57768232 + 818.155368054 + 945.078663639 = $5,856 Mil.
Gross Profit was 840.893977506 + 262.227677202 + 365.234316214 + 134.035066184 = $1,602 Mil.
Total Current Assets was $12,925 Mil.
Total Assets was $15,295 Mil.
Property, Plant and Equipment(Net PPE) was $914 Mil.
Depreciation, Depletion and Amortization(DDA) was $121 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $2,689 Mil.
Long-Term Debt was $0 Mil.
Net Income was 92.578136294 + -82.1417612765 + 86.4527003301 + -76.1267620041 = $21 Mil.
Non Operating Income was 302.820905735 + 51.0279226757 + 179.085609945 + 174.870598826 = $708 Mil.
Cash Flow from Operations was 0 + -597.739592922 + 0 + -214.642279916 = $-812 Mil.
Accounts Receivable was $0 Mil.
Revenue was 3840.63194772 + 1470.40360447 + 1074.46633306 + 1125.95382268 = $7,511 Mil.
Gross Profit was 930.910193357 + 246.415146875 + 315.145372775 + 277.568552159 = $1,770 Mil.
Total Current Assets was $14,911 Mil.
Total Assets was $17,838 Mil.
Property, Plant and Equipment(Net PPE) was $972 Mil.
Depreciation, Depletion and Amortization(DDA) was $167 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $3,996 Mil.
Long-Term Debt was $0 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)
=(0 / 5855.53149312) / (0 / 7511.45570792)
=0 / 0
=

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)
=(262.227677202 / 7511.45570792) / (840.893977506 / 5855.53149312)
=0.2356453 / 0.27365424
=

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 - (12925.2994863 + 914.216324052) / 15295.3229055) / (1 - (14911.1814772 + 972.265265333) / 17837.6451301)
=0.09517989 / 0.10955473
=

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
=5855.53149312 / 7511.45570792
=

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))
=(166.564604105 / (166.564604105 + 972.265265333)) / (121.088565692 / (121.088565692 + 914.216324052))
=0.14625943 / 0.11695933
=

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)
=(0 / 5855.53149312) / (0 / 7511.45570792)
=0 / 0
=

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)
=((0 + 2689.44015574) / 15295.3229055) / ((0 + 3995.87909003) / 17837.6451301)
=0.17583415 / 0.22401382
=

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
=(20.7623133435 - 707.805037181 - -812.381872838) / 15295.3229055
=0.0082

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.

Nintendo Co Ltd has a M-score of signals that the company is likely to 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.

Nintendo Co Ltd Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 1.79190.86711.0553011.24070
GMI 0.95720.99771.02630.98330.96971.07631.0485
AQI 1.16970.99681.05640.71240.90111.01731.0143
SGI 1.0060.90491.86822.00421.14110.82580.7945
DEPI 1.11480.84760.64220.79711.15091.24991.0565
SGAI 1.08381.19490.55310.50581.52751.12750
LVGI 1.6130.86781.88711.05690.95170.77280.8812
TATA -0.0221-0.0022-0.08250.01250.0710.03740.0303
M-score -2.01-2.71-2.26-2.53-2.14-2.11-3.19

Nintendo Co Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 11111
GMI 1.33571.55771.61081.35961.1814
AQI 2.20211.93171.971.58390.8889
SGI 0.76270.78220.68480.73430.7608
DEPI 0.58980.41970.46920.42050.6715
SGAI 0.26240000
LVGI 0.82630.90110.5570.68051.1548
TATA 0.0167-0.01510.06720.0861-0.0136
M-score -1.81-1.94-1.48-1.68-2.62
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