Mitsubishi Electric (Mitsubishi Electric) Beneish M-Score

: -2.55 (As of Today)

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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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIELY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88 Med: -2.55 Max: -2.28
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Mitsubishi Electric was -2.28. The lowest was -2.88. And the median was -2.55.

Mitsubishi Electric Beneish M-Score Historical Data

The historical data trend for Mitsubishi Electric'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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Mitsubishi Electric Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.44

-2.66

-2.81

-2.51

-2.35

Mitsubishi Electric 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															-2.32	-2.35	-2.35	-2.47	-2.55

Competitive Comparison

For the Electrical Equipment & Parts subindustry, Mitsubishi Electric'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.

Mitsubishi Electric Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, Mitsubishi Electric's Beneish M-Score distribution charts can be found below:

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

Mitsubishi Electric 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 Mitsubishi Electric 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 * 0.9677

0.528 * 0.9277

0.404 * 1.0842

0.892 * 1.0025

0.115 * 1.0564

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0212

4.679 * -0.025226

0.327 * 0.985

-2.62

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $8,590 Mil.
Revenue was 8639.547 + 8915.898 + 8632.685 + 10761.714 = $36,950 Mil.
Gross Profit was 2621.226 + 2597.464 + 2497.388 + 3173.847 = $10,890 Mil.
Total Current Assets was $23,934 Mil.
Total Assets was $40,250 Mil.
Property, Plant and Equipment(Net PPE) was $6,487 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,473 Mil.
Selling, General, & Admin. Expense(SGA) was $8,589 Mil.
Total Current Liabilities was $12,402 Mil.
Long-Term Debt & Capital Lease Obligation was $1,799 Mil.
Net Income was 457.482 + 422.023 + 409.131 + 557.853 = $1,846 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 118.737 + 613.041 + 645.326 + 1484.712 = $2,862 Mil.

Total Receivables was $8,854 Mil.
Revenue was 9084.771 + 8876.367 + 7970.348 + 10925.311 = $36,857 Mil.
Gross Profit was 2623.663 + 2355.192 + 2174.126 + 2924.031 = $10,077 Mil.
Total Current Assets was $23,833 Mil.
Total Assets was $39,333 Mil.
Property, Plant and Equipment(Net PPE) was $6,642 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,614 Mil.
Selling, General, & Admin. Expense(SGA) was $8,389 Mil.
Total Current Liabilities was $12,713 Mil.
Long-Term Debt & Capital Lease Obligation was $1,376 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)
	=	(8590.236 / 36949.844)	/	(8854.396 / 36856.797)
	=	0.232484	/	0.240238
	=	0.9677

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)
	=	(10077.012 / 36856.797)	/	(10889.925 / 36949.844)
	=	0.27341	/	0.294722
	=	0.9277

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 - (23933.88 + 6487.458) / 40249.636)	/	(1 - (23833.049 + 6641.517) / 39332.72)
	=	0.244184	/	0.225211
	=	1.0842

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
	=	36949.844	/	36856.797
	=	1.0025

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))
	=	(1613.893 / (1613.893 + 6641.517))	/	(1473.205 / (1473.205 + 6487.458))
	=	0.195495	/	0.185061
	=	1.0564

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)
	=	(8588.999 / 36949.844)	/	(8389.444 / 36856.797)
	=	0.23245	/	0.227623
	=	1.0212

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)
	=	((1799.231 + 12401.947) / 40249.636)	/	((1375.579 + 12713.216) / 39332.72)
	=	0.352827	/	0.358195
	=	0.985

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
	=	(1846.489 - 0	-	2861.816)	/	40249.636
	=	-0.025226

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.

Mitsubishi Electric has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.

Mitsubishi Electric Beneish M-Score Related Terms

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Mitsubishi Electric (Mitsubishi Electric) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mitsubishi Electric Corp (OTCPK:MIELY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MIELF:USA 6503:Japan MIE1:Germany

Address

Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-8310

Website

https://www.mitsubishielectric.com

Mitsubishi Electric is a general electric diversified industrials company that develops, manufactures and sells electrical equipment worldwide. The company's core segments include: industrial automation systems, energy and electric systems, electric devices, information and communication systems, and home appliances (which includes commercial air conditioning). Mitsubishi Electric was founded in 1921 and is headquartered in Tokyo.