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Aisan Industry Co (TSE:7283) Beneish M-Score : -2.51 (As of May. 15, 2024)


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What is Aisan Industry Co 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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:7283' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.67   Max: -2.34
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Aisan Industry Co was -2.34. The lowest was -3.17. And the median was -2.67.


Aisan Industry Co Beneish M-Score Historical Data

The historical data trend for Aisan Industry Co'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.

Aisan Industry Co Beneish M-Score Chart

Aisan Industry Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.06 -2.77 -2.59 -2.69 -2.51

Aisan Industry Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -2.69 - - - -2.51

Competitive Comparison of Aisan Industry Co's Beneish M-Score

For the Auto Parts subindustry, Aisan Industry Co'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.


Aisan Industry Co's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Aisan Industry Co's Beneish M-Score distribution charts can be found below:

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



Aisan Industry Co 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 Aisan Industry Co 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 * 0.9813+0.528 * 1.0373+0.404 * 1.3274+0.892 * 1.3053+0.115 * 0.9255
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8926+4.679 * -0.098635-0.327 * 0.955
=-2.51

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was 円39,279 Mil.
Revenue was 円314,336 Mil.
Gross Profit was 円41,218 Mil.
Total Current Assets was 円149,636 Mil.
Total Assets was 円272,549 Mil.
Property, Plant and Equipment(Net PPE) was 円83,599 Mil.
Depreciation, Depletion and Amortization(DDA) was 円14,949 Mil.
Selling, General, & Admin. Expense(SGA) was 円2,160 Mil.
Total Current Liabilities was 円82,067 Mil.
Long-Term Debt & Capital Lease Obligation was 円31,526 Mil.
Net Income was 円11,744 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円38,627 Mil.
Total Receivables was 円30,664 Mil.
Revenue was 円240,806 Mil.
Gross Profit was 円32,754 Mil.
Total Current Assets was 円121,326 Mil.
Total Assets was 円225,762 Mil.
Property, Plant and Equipment(Net PPE) was 円79,903 Mil.
Depreciation, Depletion and Amortization(DDA) was 円13,050 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,854 Mil.
Total Current Liabilities was 円58,881 Mil.
Long-Term Debt & Capital Lease Obligation was 円39,646 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)
=(39279 / 314336) / (30664 / 240806)
=0.124959 / 0.127339
=0.9813

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)
=(32754 / 240806) / (41218 / 314336)
=0.136018 / 0.131127
=1.0373

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 - (149636 + 83599) / 272549) / (1 - (121326 + 79903) / 225762)
=0.144246 / 0.108668
=1.3274

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
=314336 / 240806
=1.3053

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))
=(13050 / (13050 + 79903)) / (14949 / (14949 + 83599))
=0.140394 / 0.151693
=0.9255

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)
=(2160 / 314336) / (1854 / 240806)
=0.006872 / 0.007699
=0.8926

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)
=((31526 + 82067) / 272549) / ((39646 + 58881) / 225762)
=0.41678 / 0.43642
=0.955

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
=(11744 - 0 - 38627) / 272549
=-0.098635

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.

Aisan Industry Co has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.


Aisan Industry Co Beneish M-Score Related Terms

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Aisan Industry Co (TSE:7283) Business Description

Traded in Other Exchanges
Address
1-1-1 Kyowa-cho, Obu-shi, Aichi-ken, JPN, 474-8588
Aisan Industry Co Ltd is a Japan based company engaged in manufacturing and sales of automotive parts. Its products include Fuel system products such as Fuel pump module to regulate pressure of the fuel; Intake and exhaust system products including throttle body, intake manifold, exhaust gas re-circulation product, positive crankcase ventilation valve; Emission control system products such as charcoal canister; Valve train system such as Engine Valve; Products for motorcycle such as FI System for Small Motorcycle, Titanium Alloy Engine Valve for Motorcycle, Charcoal Canister for Motorcycle; and Products for green vehicle includes products for fuel cell vehicle, products for electric vehicle and gas fuel systems for LPG, CNG.

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