Honda Motor Co (BSP:HOND34) Beneish M-Score : -2.27 (As of Apr. 25, 2024)

View and export this data going back to 2019. Start your Free Trial

What is Honda Motor 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 -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:HOND34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93 Med: -2.56 Max: -2.01
Current: -2.27

During the past 13 years, the highest Beneish M-Score of Honda Motor Co was -2.01. The lowest was -2.93. And the median was -2.56.

Honda Motor Co Beneish M-Score Historical Data

The historical data trend for Honda Motor 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.

Honda Motor Co Beneish M-Score Chart

Honda Motor Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

Get a 7-Day Free Trial

-2.49

-2.70

-2.50

-2.67

-2.65

Honda Motor Co 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															-2.72	-2.65	-2.51	-2.40	-2.27

Competitive Comparison of Honda Motor Co's Beneish M-Score

For the Auto Manufacturers subindustry, Honda Motor 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.

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

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

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

Honda Motor 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 Honda Motor Co 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 * 1.0676

0.528 * 0.9436

0.404 * 1.0886

0.892 * 1.0698

0.115 * 0.8512

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1663

4.679 * 0.002269

0.327 * 1.0701

-2.41

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was R$117,099 Mil.
Revenue was 183429.204 + 166501.651 + 158804.788 + 170843.871 = R$679,580 Mil.
Gross Profit was 39956.435 + 36428.896 + 34236.797 + 33262.735 = R$143,885 Mil.
Total Current Assets was R$365,899 Mil.
Total Assets was R$933,455 Mil.
Property, Plant and Equipment(Net PPE) was R$270,494 Mil.
Depreciation, Depletion and Amortization(DDA) was R$27,671 Mil.
Selling, General, & Admin. Expense(SGA) was R$73,209 Mil.
Total Current Liabilities was R$252,658 Mil.
Long-Term Debt & Capital Lease Obligation was R$183,471 Mil.
Net Income was 8620.264 + 8459.108 + 12466.41 + 2659.434 = R$32,205 Mil.
Non Operating Income was 18.479 + 797.401 + 1471.409 + -2717.262 = R$-430 Mil.
Cash Flow from Operations was 1421.363 + 6140.764 + 6734.084 + 16220.959 = R$30,517 Mil.

Total Receivables was R$102,524 Mil.
Revenue was 172553.796 + 155742.616 + 144297.89 + 162652.823 = R$635,247 Mil.
Gross Profit was 34937.102 + 29789.437 + 28839.608 + 33343.618 = R$126,910 Mil.
Total Current Assets was R$353,418 Mil.
Total Assets was R$938,648 Mil.
Property, Plant and Equipment(Net PPE) was R$310,815 Mil.
Depreciation, Depletion and Amortization(DDA) was R$26,657 Mil.
Selling, General, & Admin. Expense(SGA) was R$58,677 Mil.
Total Current Liabilities was R$239,903 Mil.
Long-Term Debt & Capital Lease Obligation was R$169,915 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)
	=	(117098.521 / 679579.514)	/	(102523.685 / 635247.125)
	=	0.17231	/	0.161392
	=	1.0676

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)
	=	(126909.765 / 635247.125)	/	(143884.863 / 679579.514)
	=	0.19978	/	0.211726
	=	0.9436

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 - (365899.15 + 270493.843) / 933455.468)	/	(1 - (353418.014 + 310814.642) / 938648.294)
	=	0.31824	/	0.292352
	=	1.0886

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
	=	679579.514	/	635247.125
	=	1.0698

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))
	=	(26657.187 / (26657.187 + 310814.642))	/	(27670.891 / (27670.891 + 270493.843))
	=	0.078991	/	0.092804
	=	0.8512

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)
	=	(73208.54 / 679579.514)	/	(58676.914 / 635247.125)
	=	0.107726	/	0.092369
	=	1.1663

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)
	=	((183470.824 + 252657.811) / 933455.468)	/	((169914.743 + 239903.409) / 938648.294)
	=	0.46722	/	0.436605
	=	1.0701

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
	=	(32205.216 - -429.973	-	30517.17)	/	933455.468
	=	0.002269

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.

Honda Motor Co has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.

Honda Motor Co Beneish M-Score Related Terms

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

Honda Motor Co (BSP:HOND34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Honda Motor Co Ltd (BSP:HOND34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HNDAF:USA HMC:USA HMC:Mexico 7267:Japan HDM:Germany HMC:Argentina

Address

Number 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo, JPN, 107-8556

Website

https://global.honda

Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 22.4 million cars and motorcycles in fiscal 2023 (3.7 million of which were autos), and consolidated sales were JPY 16.9 trillion. Automobiles constitute 63% of revenue and motorcycles 17%, with the rest split between power products and financial services. Honda also makes robots and private jets.

Honda Motor Co (BSP:HOND34) Headlines

No Headlines