Toray Industries (Toray Industries) Beneish M-Score : -2.77 (As of Apr. 28, 2024)

View and export this data going back to 1983. Start your Free Trial

What is Toray Industries Beneish M-Score?

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 -2.77 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TRYIY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68 Med: -2.31 Max: -2.06
Current: -2.77

During the past 13 years, the highest Beneish M-Score of Toray Industries was -2.06. The lowest was -3.68. And the median was -2.31.

Toray Industries Beneish M-Score Historical Data

The historical data trend for Toray Industries'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.

Toray Industries Beneish M-Score Chart

Toray Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

Get a 7-Day Free Trial

-2.17

-2.90

-2.64

-2.44

Toray Industries 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	Get a 7-Day Free Trial															-2.30	-2.44	-2.58	-2.65	-2.77

Competitive Comparison of Toray Industries's Beneish M-Score

For the Textile Manufacturing subindustry, Toray Industries'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.

Toray Industries's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Toray Industries's Beneish M-Score distribution charts can be found below:

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

Toray Industries 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 Toray Industries 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 * 0.981

0.528 * 0.9833

0.404 * 1.0197

0.892 * 0.9101

0.115 * 1.033

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0621

4.679 * -0.058113

0.327 * 0.9416

-2.84

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $4,335 Mil.
Revenue was 4375.784 + 4202.503 + 4089.309 + 4395.564 = $17,063 Mil.
Gross Profit was 796.144 + 731.699 + 740.538 + 734.325 = $3,003 Mil.
Total Current Assets was $10,650 Mil.
Total Assets was $23,533 Mil.
Property, Plant and Equipment(Net PPE) was $7,607 Mil.
Depreciation, Depletion and Amortization(DDA) was $901 Mil.
Selling, General, & Admin. Expense(SGA) was $2,397 Mil.
Total Current Liabilities was $6,179 Mil.
Long-Term Debt & Capital Lease Obligation was $3,874 Mil.
Net Income was 116.626 + 100.923 + 98.657 + -12.943 = $303 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 277.411 + 148.581 + 313.643 + 931.228 = $1,671 Mil.

Total Receivables was $4,855 Mil.
Revenue was 4743.779 + 4577.787 + 4522.696 + 4905.243 = $18,750 Mil.
Gross Profit was 798.837 + 737.143 + 815.799 + 892.497 = $3,244 Mil.
Total Current Assets was $11,121 Mil.
Total Assets was $24,197 Mil.
Property, Plant and Equipment(Net PPE) was $7,755 Mil.
Depreciation, Depletion and Amortization(DDA) was $953 Mil.
Selling, General, & Admin. Expense(SGA) was $2,480 Mil.
Total Current Liabilities was $6,126 Mil.
Long-Term Debt & Capital Lease Obligation was $4,851 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)
	=	(4334.661 / 17063.16)	/	(4855.464 / 18749.505)
	=	0.254036	/	0.258965
	=	0.981

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)
	=	(3244.276 / 18749.505)	/	(3002.706 / 17063.16)
	=	0.173033	/	0.175976
	=	0.9833

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 - (10649.945 + 7606.568) / 23533.44)	/	(1 - (11120.974 + 7755.443) / 24197.249)
	=	0.224231	/	0.219894
	=	1.0197

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
	=	17063.16	/	18749.505
	=	0.9101

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))
	=	(952.724 / (952.724 + 7755.443))	/	(901.093 / (901.093 + 7606.568))
	=	0.109406	/	0.105915
	=	1.033

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)
	=	(2397.224 / 17063.16)	/	(2480.176 / 18749.505)
	=	0.140491	/	0.13228
	=	1.0621

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)
	=	((3874.185 + 6178.697) / 23533.44)	/	((4851.076 + 6126.259) / 24197.249)
	=	0.427174	/	0.45366
	=	0.9416

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
	=	(303.263 - 0	-	1670.863)	/	23533.44
	=	-0.058113

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.

Toray Industries has a M-score of -2.84 suggests that the company is unlikely to be a manipulator.

Toray Industries Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Toray Industries's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Toray Industries (Toray Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Toray Industries Inc (OTCPK:TRYIY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TRYIF:USA 3402:Japan TOR1:Germany

Address

Nihonbashi Mitsui Tower 2-1-1, Nihonbashi Muromach, Chuo-ku, Tokyo, JPN, 103-8666

Website

http://www.toray.co.jp

Toray Industries Inc is a Japan-based company that is primarily engaged in the integrated chemical industry to produce apparel and industrial materials. The company's businesses consist of Fibers & Textiles, Plastics & Chemicals, IT-related Products, Carbon Fiber Composite Materials, Environment & Engineering, and Life Science. The Fibers & Textiles business and Plastics & Chemicals business are the company's core growth drivers, and they jointly contribute around two thirds of the company's revenue. The company has business presence in Japan, China, other Asian areas, Europe, North America, and other areas, with the whole Asia market accounting for majority of the company's total revenue.