KMTUF (Komatsu) Beneish M-Score : -2.44 (As of Apr. 02, 2025)

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What is Komatsu 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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KMTUF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95 Med: -2.48 Max: -2.12
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Komatsu was -2.12. The lowest was -2.95. And the median was -2.48.

Komatsu Beneish M-Score Historical Data

The historical data trend for Komatsu'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.

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Komatsu Beneish M-Score Chart

Komatsu Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.75

-2.60

-2.41

-2.23

-2.41

Komatsu Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.35	-2.41	-2.40	-2.52	-2.44

Competitive Comparison of Komatsu's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, Komatsu'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.

Komatsu's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Komatsu's Beneish M-Score distribution charts can be found below:

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

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Komatsu 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 Komatsu 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 * 1.0369

0.528 * 0.984

0.404 * 1.0472

0.892 * 0.9938

0.115 * 1.0115

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0532

4.679 * -0.012698

0.327 * 1.0026

-2.51

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $8,065 Mil.
Revenue was 6431.106 + 7052.821 + 6080.305 + 7142.851 = $26,707 Mil.
Gross Profit was 2132.832 + 2197.343 + 1998.955 + 2118.495 = $8,448 Mil.
Total Current Assets was $22,454 Mil.
Total Assets was $38,483 Mil.
Property, Plant and Equipment(Net PPE) was $6,465 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,063 Mil.
Selling, General, & Admin. Expense(SGA) was $4,330 Mil.
Total Current Liabilities was $11,757 Mil.
Long-Term Debt & Capital Lease Obligation was $3,683 Mil.
Net Income was 704.349 + 643.508 + 695.154 + 595.113 = $2,638 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 616.334 + 935.483 + 531.75 + 1043.228 = $3,127 Mil.

Total Receivables was $7,826 Mil.
Revenue was 6750.84 + 6246.021 + 6363.633 + 7513.173 = $26,874 Mil.
Gross Profit was 2132.371 + 2012.148 + 2039.572 + 2180.126 = $8,364 Mil.
Total Current Assets was $21,847 Mil.
Total Assets was $37,292 Mil.
Property, Plant and Equipment(Net PPE) was $6,595 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,099 Mil.
Selling, General, & Admin. Expense(SGA) was $4,137 Mil.
Total Current Liabilities was $10,571 Mil.
Long-Term Debt & Capital Lease Obligation was $4,353 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)
	=	(8064.601 / 26707.083)	/	(7826.04 / 26873.667)
	=	0.301965	/	0.291216
	=	1.0369

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)
	=	(8364.217 / 26873.667)	/	(8447.625 / 26707.083)
	=	0.311242	/	0.316307
	=	0.984

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 - (22453.602 + 6465.023) / 38482.956)	/	(1 - (21846.953 + 6594.889) / 37292.43)
	=	0.248534	/	0.237329
	=	1.0472

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
	=	26707.083	/	26873.667
	=	0.9938

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))
	=	(1098.518 / (1098.518 + 6594.889))	/	(1062.687 / (1062.687 + 6465.023))
	=	0.142787	/	0.14117
	=	1.0115

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)
	=	(4329.636 / 26707.083)	/	(4136.56 / 26873.667)
	=	0.162116	/	0.153926
	=	1.0532

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)
	=	((3683.305 + 11757.463) / 38482.956)	/	((4352.92 + 10571.08) / 37292.43)
	=	0.401237	/	0.400188
	=	1.0026

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
	=	(2638.124 - 0	-	3126.795)	/	38482.956
	=	-0.012698

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.

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

Komatsu Beneish M-Score Related Terms

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Komatsu Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Komatsu Ltd (OTCPK:KMTUF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

KMTUY:USA 6301:Japan KOM1:Germany KOMT:Austria

Address

3-6 Akasaka 2-chome, Minato-ku, Tokyo, JPN, 107-8414

Website

https://www.komatsu.jp

Komatsu manufactures and sells construction, mining, utility, forestry, and industrial machinery. It also provides related services such as supplying parts, financing, and maintenance. Its major products are hydraulic excavators, bulldozers, wheel loaders, dump trucks, and motor graders, which focus on surface mining and construction. Through its subsidiary, Komatsu Mining (previously Joy Global before being acquired), the company manufactures and sells surface mining equipment like draglines as well as underground mining machinery such as continuous miners and blasthole drills. The company is headquartered in Tokyo.