GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Daiwa House Industry Co Ltd (OTCPK:DWAHY) » Definitions » Beneish M-Score

DWAHY (Daiwa House Industry Co) Beneish M-Score : -2.40 (As of Dec. 13, 2024)


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

What is Daiwa House 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DWAHY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76   Med: -2.46   Max: -2.26
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Daiwa House Industry Co was -2.26. The lowest was -2.76. And the median was -2.46.


Daiwa House Industry Co Beneish M-Score Historical Data

The historical data trend for Daiwa House 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.

Daiwa House Industry Co Beneish M-Score Chart

Daiwa House 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 -2.30 -2.76 -2.59 -2.41 -2.40

Daiwa House Industry Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 - - -2.40 - -

Competitive Comparison of Daiwa House Industry Co's Beneish M-Score

For the Real Estate - Development subindustry, Daiwa House 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.


Daiwa House Industry Co's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Daiwa House Industry Co's Beneish M-Score distribution charts can be found below:

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



Daiwa House 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 Daiwa House 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 * 1.0413+0.528 * 1.0203+0.404 * 0.9763+0.892 * 0.9457+0.115 * 0.9577
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9803+4.679 * -0.000542-0.327 * 1.0175
=-2.50

* 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 $3,464 Mil.
Revenue was $34,728 Mil.
Gross Profit was $6,624 Mil.
Total Current Assets was $24,363 Mil.
Total Assets was $43,611 Mil.
Property, Plant and Equipment(Net PPE) was $15,089 Mil.
Depreciation, Depletion and Amortization(DDA) was $782 Mil.
Selling, General, & Admin. Expense(SGA) was $693 Mil.
Total Current Liabilities was $10,222 Mil.
Long-Term Debt & Capital Lease Obligation was $12,383 Mil.
Net Income was $1,994 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $2,018 Mil.
Total Receivables was $3,517 Mil.
Revenue was $36,720 Mil.
Gross Profit was $7,146 Mil.
Total Current Assets was $24,330 Mil.
Total Assets was $45,951 Mil.
Property, Plant and Equipment(Net PPE) was $17,134 Mil.
Depreciation, Depletion and Amortization(DDA) was $849 Mil.
Selling, General, & Admin. Expense(SGA) was $747 Mil.
Total Current Liabilities was $11,423 Mil.
Long-Term Debt & Capital Lease Obligation was $11,985 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)
=(3463.816 / 34728.125) / (3517.11 / 36720.343)
=0.099741 / 0.095781
=1.0413

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)
=(7146.216 / 36720.343) / (6624.057 / 34728.125)
=0.194612 / 0.19074
=1.0203

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 - (24363.337 + 15089.021) / 43610.88) / (1 - (24329.518 + 17134.044) / 45951.44)
=0.095355 / 0.097666
=0.9763

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
=34728.125 / 36720.343
=0.9457

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))
=(848.873 / (848.873 + 17134.044)) / (782.306 / (782.306 + 15089.021))
=0.047204 / 0.049291
=0.9577

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)
=(692.871 / 34728.125) / (747.312 / 36720.343)
=0.019951 / 0.020351
=0.9803

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)
=((12382.608 + 10221.695) / 43610.88) / ((11984.703 + 11422.998) / 45951.44)
=0.518318 / 0.509401
=1.0175

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
=(1994.092 - 0 - 2017.733) / 43610.88
=-0.000542

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.

Daiwa House Industry Co has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.


Daiwa House Industry Co Beneish M-Score Related Terms

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


Daiwa House Industry Co Business Description

Traded in Other Exchanges
Address
3-3-5 Umeda, Kita-ku, Osaka, JPN, 530-8241
Daiwa House Industry Co Ltd is engaged in the business of housing, commercial facilities, and urban development. Daiwa's business segments include Single-Family Houses, Rental Housing, Existing Home Business, Health and Leisure, Business and Corporate Facilities, and Other Businesses. The Company conducts real estate development and construction work under contract in overseas markets, principally in Asia.

Daiwa House Industry Co Headlines