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Sanix (TSE:4651) Beneish M-Score : -3.42 (As of May. 02, 2024)


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What is Sanix 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 -3.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:4651' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Med: -2.24   Max: -0.67
Current: -3.42

During the past 13 years, the highest Beneish M-Score of Sanix was -0.67. The lowest was -3.42. And the median was -2.24.


Sanix Beneish M-Score Historical Data

The historical data trend for Sanix'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.

Sanix Beneish M-Score Chart

Sanix Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.45 -2.91 -2.65 -2.03 -3.42

Sanix 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -3.42 - - -

Competitive Comparison of Sanix's Beneish M-Score

For the Waste Management subindustry, Sanix'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.


Sanix's Beneish M-Score Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Sanix's Beneish M-Score distribution charts can be found below:

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



Sanix 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 Sanix 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 * 0.8059+0.528 * 0.6779+0.404 * 1.0423+0.892 * 0.9085+0.115 * 0.7935
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0399+4.679 * -0.110224-0.327 * 0.9379
=-3.42

* 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.

This Year (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was 円4,827 Mil.
Revenue was 円46,277 Mil.
Gross Profit was 円16,208 Mil.
Total Current Assets was 円13,683 Mil.
Total Assets was 円33,586 Mil.
Property, Plant and Equipment(Net PPE) was 円16,671 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,889 Mil.
Selling, General, & Admin. Expense(SGA) was 円991 Mil.
Total Current Liabilities was 円16,382 Mil.
Long-Term Debt & Capital Lease Obligation was 円6,813 Mil.
Net Income was 円1,332 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円5,034 Mil.
Total Receivables was 円6,593 Mil.
Revenue was 円50,936 Mil.
Gross Profit was 円12,093 Mil.
Total Current Assets was 円14,551 Mil.
Total Assets was 円34,953 Mil.
Property, Plant and Equipment(Net PPE) was 円17,175 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,509 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,049 Mil.
Total Current Liabilities was 円21,718 Mil.
Long-Term Debt & Capital Lease Obligation was 円4,019 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)
=(4827 / 46277) / (6593 / 50936)
=0.104307 / 0.129437
=0.8059

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)
=(12093 / 50936) / (16208 / 46277)
=0.237416 / 0.350239
=0.6779

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 - (13683 + 16671) / 33586) / (1 - (14551 + 17175) / 34953)
=0.096231 / 0.092324
=1.0423

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
=46277 / 50936
=0.9085

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))
=(1509 / (1509 + 17175)) / (1889 / (1889 + 16671))
=0.080764 / 0.101778
=0.7935

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)
=(991 / 46277) / (1049 / 50936)
=0.021415 / 0.020594
=1.0399

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)
=((6813 + 16382) / 33586) / ((4019 + 21718) / 34953)
=0.690615 / 0.736332
=0.9379

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
=(1332 - 0 - 5034) / 33586
=-0.110224

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.

Sanix has a M-score of -3.42 suggests that the company is unlikely to be a manipulator.


Sanix (TSE:4651) Business Description

Traded in Other Exchanges
N/A
Address
2-1-23, Hakataeki-Higashi, Hakata-ku, Fukuoka, JPN, 812-0013
Sanix Inc is engaged in developing and implementing sanitation management works. The company converts industrial waste plastics into fuel, which are used for generating electricity at Tomakomai Power Plant and others around Japan. It operates in five divisions namely, Solar Engineering that installs PV systems on idle land and rooftops of buildings and factories; Establishment Sanitation that provides total sanitation management and maintenance of water supply systems and pest control for food processing plants and restaurants; Home Sanitation that protects wooden residential houses from decay by moisture caused by humidity or flooding, and from pests like termites and mould; Energy Business Division and Environmental Resources Development.

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