Nissan Motor Co (Nissan Motor Co) Beneish M-Score : -2.49 (As of Apr. 27, 2024)

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What is Nissan 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NSANY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.6 Max: -2.32
Current: -2.49

During the past 13 years, the highest Beneish M-Score of Nissan Motor Co was -2.32. The lowest was -3.21. And the median was -2.60.

Nissan Motor Co Beneish M-Score Historical Data

The historical data trend for Nissan 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.

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Nissan Motor Co Beneish M-Score Chart

Nissan Motor Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.74

-3.07

-2.92

-2.71

-2.65

Nissan 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															-2.61	-2.65	-2.61	-2.49	-2.49

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

For the Auto Manufacturers subindustry, Nissan 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.

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

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

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

Nissan 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 Nissan 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 * 0.8813

0.528 * 0.9789

0.404 * 1.0205

0.892 * 1.1751

0.115 * 1.0883

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9744

4.679 * -0.030077

0.327 * 0.9968

-2.56

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $52,392 Mil.
Revenue was 21586.523 + 21276.918 + 20640.204 + 23170.016 = $86,674 Mil.
Gross Profit was 3508.485 + 3871.007 + 3520.562 + 3517.319 = $14,417 Mil.
Total Current Assets was $83,373 Mil.
Total Assets was $128,872 Mil.
Property, Plant and Equipment(Net PPE) was $31,120 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,469 Mil.
Selling, General, & Admin. Expense(SGA) was $3,890 Mil.
Total Current Liabilities was $47,658 Mil.
Long-Term Debt & Capital Lease Obligation was $30,697 Mil.
Net Income was 202.415 + 1290.101 + 746.155 + 799.466 = $3,038 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1607.206 + 923.17 + 960.942 + 3422.851 = $6,914 Mil.

Total Receivables was $50,590 Mil.
Revenue was 21031.355 + 17621.882 + 15954.618 + 19148.286 = $73,756 Mil.
Gross Profit was 3506.85 + 3002.555 + 2540.752 + 2959.83 = $12,010 Mil.
Total Current Assets was $80,602 Mil.
Total Assets was $125,670 Mil.
Property, Plant and Equipment(Net PPE) was $31,328 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,958 Mil.
Selling, General, & Admin. Expense(SGA) was $3,397 Mil.
Total Current Liabilities was $46,684 Mil.
Long-Term Debt & Capital Lease Obligation was $29,973 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)
	=	(52391.627 / 86673.661)	/	(50589.928 / 73756.141)
	=	0.60447	/	0.685908
	=	0.8813

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)
	=	(12009.987 / 73756.141)	/	(14417.373 / 86673.661)
	=	0.162834	/	0.166341
	=	0.9789

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 - (83373.142 + 31119.922) / 128872.181)	/	(1 - (80602.076 + 31327.66) / 125669.993)
	=	0.111577	/	0.109336
	=	1.0205

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
	=	86673.661	/	73756.141
	=	1.1751

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))
	=	(4958.335 / (4958.335 + 31327.66))	/	(4468.543 / (4468.543 + 31119.922))
	=	0.136646	/	0.125562
	=	1.0883

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)
	=	(3889.749 / 86673.661)	/	(3397.027 / 73756.141)
	=	0.044878	/	0.046058
	=	0.9744

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)
	=	((30696.798 + 47658.498) / 128872.181)	/	((29972.598 + 46684.404) / 125669.993)
	=	0.608008	/	0.609987
	=	0.9968

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
	=	(3038.137 - 0	-	6914.169)	/	128872.181
	=	-0.030077

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.

Nissan Motor Co has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Nissan Motor Co Beneish M-Score Related Terms

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Nissan Motor Co (Nissan Motor Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nissan Motor Co Ltd (OTCPK:NSANY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NSANF:USA 7201:Japan NISA:Germany NISA:Austria

Address

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa, JPN, 220-8686

Website

http://www.nissan-global.com

While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.