Sony Group (Sony Group) Beneish M-Score

: -2.19 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Sony Group's Beneish M-Score or its related term are showing as below:

SNEJF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.56 Max: -2.19
Current: -2.19

During the past 13 years, the highest Beneish M-Score of Sony Group was -2.19. The lowest was -2.78. And the median was -2.56.

Sony Group Beneish M-Score Historical Data

The historical data trend for Sony Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sony Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

-2.51

-2.59

-2.35

-2.40

-2.33

Sony Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-2.45	-2.33	-2.33	-2.28	-2.19

Competitive Comparison

For the Consumer Electronics subindustry, Sony Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sony Group Beneish M-Score Distribution

For the Hardware industry and Technology sector, Sony Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sony Group's Beneish M-Score falls into.

Sony Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Sony Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9422

0.528 * 1.3064

0.404 * 0.9536

0.892 * 1.2111

0.115 * 0.9847

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.868

4.679 * -0.014921

0.327 * 1.0248

-2.26

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $16,739 Mil.
Revenue was 26027.837 + 19132.355 + 20965.562 + 26980.346 = $93,106 Mil.
Gross Profit was 7021.999 + 5244.783 + 5055.239 + 4470.049 = $21,792 Mil.
Total Current Assets was $51,180 Mil.
Total Assets was $233,666 Mil.
Property, Plant and Equipment(Net PPE) was $13,628 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,904 Mil.
Selling, General, & Admin. Expense(SGA) was $14,842 Mil.
Total Current Liabilities was $74,223 Mil.
Long-Term Debt & Capital Lease Obligation was $12,780 Mil.
Net Income was 2527.533 + 1353.478 + 1538.964 + 544.872 = $5,965 Mil.
Non Operating Income was 23.065 + 19.906 + 32.824 + -37.422 = $38 Mil.
Cash Flow from Operations was 5673.833 + 863.742 + -89.623 + 2964.995 = $9,413 Mil.

Total Receivables was $14,668 Mil.
Revenue was 22816.652 + 18323.459 + 16644.733 + 19092.896 = $76,878 Mil.
Gross Profit was 6981.665 + 5847.542 + 5700.345 + 4976.952 = $23,507 Mil.
Total Current Assets was $42,740 Mil.
Total Assets was $228,830 Mil.
Property, Plant and Equipment(Net PPE) was $12,673 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,175 Mil.
Selling, General, & Admin. Expense(SGA) was $14,119 Mil.
Total Current Liabilities was $70,391 Mil.
Long-Term Debt & Capital Lease Obligation was $12,748 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(16738.539 / 93106.1)	/	(14668.406 / 76877.74)
	=	0.179779	/	0.190802
	=	0.9422

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)
	=	(23506.504 / 76877.74)	/	(21792.07 / 93106.1)
	=	0.305765	/	0.234056
	=	1.3064

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (51179.589 + 13627.792) / 233666.304)	/	(1 - (42740.418 + 12672.917) / 228829.528)
	=	0.72265	/	0.75784
	=	0.9536

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	93106.1	/	76877.74
	=	1.2111

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(7174.904 / (7174.904 + 12672.917))	/	(7904.359 / (7904.359 + 13627.792))
	=	0.361496	/	0.367096
	=	0.9847

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(14841.555 / 93106.1)	/	(14118.864 / 76877.74)
	=	0.159405	/	0.183653
	=	0.868

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((12779.885 + 74223.043) / 233666.304)	/	((12748.297 + 70391.351) / 228829.528)
	=	0.372338	/	0.363326
	=	1.0248

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
	=	(5964.847 - 38.373	-	9412.947)	/	233666.304
	=	-0.014921

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Sony Group has a M-score of -2.26 suggests that the company is unlikely to be a manipulator.

Sony Group Beneish M-Score Related Terms

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Sony Group (Sony Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Sony Group Corp (OTCPK:SNEJF) » Definitions » Beneish M-Score

Traded in Other Exchanges

SONY:USA SONY:Mexico 6758:Japan SONA:Germany SON1:Germany SON1:Germany SONA:Germany SON1:Germany SNEC34:Brazil SON1:Austria

Address

7-1, Konan 1-Chome, Minato-ku, Tokyo, JPN, 108-0075

Website

https://www.sony.com

Sony Group is a conglomerate with consumer electronics roots, which not only designs, develops, produces, and sells electronic equipment and devices, but also is engaged in content businesses, such as console and mobile games, music, and movies. Sony is a global top company of CMOS image sensors, game consoles, professional broadcasting cameras, and music publishing, and is one of the top players on digital cameras, wireless earphones, recorded music, movies, and so on. Sony's business portfolio is well diversified with six major business segments. The company fully consolidated Sony Financial in September 2020, which provides life and non-life insurance, banking, and other financial services.