Takeda Pharmaceutical Co (Takeda Pharmaceutical Co) Beneish M-Score : -2.69 (As of Apr. 26, 2024)

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What is Takeda Pharmaceutical 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 -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TAK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12 Med: -2.68 Max: -1.73
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Takeda Pharmaceutical Co was -1.73. The lowest was -3.12. And the median was -2.68.

Takeda Pharmaceutical Co Beneish M-Score Historical Data

The historical data trend for Takeda Pharmaceutical 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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Takeda Pharmaceutical Co Beneish M-Score Chart

Takeda Pharmaceutical Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-1.88

-2.44

-2.71

-2.81

-2.71

Takeda Pharmaceutical 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															-2.65	-2.71	-2.64	-2.71	-2.69

Competitive Comparison of Takeda Pharmaceutical Co's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Takeda Pharmaceutical 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.

Takeda Pharmaceutical Co's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Takeda Pharmaceutical Co's Beneish M-Score distribution charts can be found below:

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

Takeda Pharmaceutical 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 Takeda Pharmaceutical 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 * 0.9029

0.528 * 1.0123

0.404 * 1.0214

0.892 * 0.9888

0.115 * 1.0286

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0027

4.679 * -0.039795

0.327 * 1.015

-2.75

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $5,161 Mil.
Revenue was 7717.561 + 7055.288 + 7488.909 + 7153.413 = $29,415 Mil.
Gross Profit was 5081.938 + 4731.354 + 5217.274 + 4835.876 = $19,866 Mil.
Total Current Assets was $16,869 Mil.
Total Assets was $98,783 Mil.
Property, Plant and Equipment(Net PPE) was $12,790 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,956 Mil.
Selling, General, & Admin. Expense(SGA) was $7,230 Mil.
Total Current Liabilities was $15,850 Mil.
Long-Term Debt & Capital Lease Obligation was $29,822 Mil.
Net Income was 734.261 + -324.867 + 632.401 + 232.927 = $1,275 Mil.
Non Operating Income was 275.202 + 13.697 + -2.957 + -293.579 = $-8 Mil.
Cash Flow from Operations was 1017.152 + 1345.362 + 653.659 + 2197.243 = $5,213 Mil.

Total Receivables was $5,780 Mil.
Revenue was 8127.73 + 6995.233 + 7259.266 + 7364.717 = $29,747 Mil.
Gross Profit was 5637.469 + 4863.492 + 5072.957 + 4764.053 = $20,338 Mil.
Total Current Assets was $19,241 Mil.
Total Assets was $100,098 Mil.
Property, Plant and Equipment(Net PPE) was $12,277 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,948 Mil.
Selling, General, & Admin. Expense(SGA) was $7,292 Mil.
Total Current Liabilities was $16,579 Mil.
Long-Term Debt & Capital Lease Obligation was $29,017 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)
	=	(5160.934 / 29415.171)	/	(5780.478 / 29746.946)
	=	0.175451	/	0.194322
	=	0.9029

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)
	=	(20337.971 / 29746.946)	/	(19866.442 / 29415.171)
	=	0.683699	/	0.675381
	=	1.0123

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 - (16869.042 + 12789.831) / 98783.156)	/	(1 - (19241.373 + 12277.497) / 100098.025)
	=	0.699758	/	0.68512
	=	1.0214

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
	=	29415.171	/	29746.946
	=	0.9888

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))
	=	(4948.063 / (4948.063 + 12277.497))	/	(4955.744 / (4955.744 + 12789.831))
	=	0.287251	/	0.279266
	=	1.0286

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)
	=	(7230.39 / 29415.171)	/	(7292.33 / 29746.946)
	=	0.245805	/	0.245146
	=	1.0027

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)
	=	((29822.387 + 15850.425) / 98783.156)	/	((29017.454 + 16579.419) / 100098.025)
	=	0.462354	/	0.455522
	=	1.015

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
	=	(1274.722 - -7.637	-	5213.416)	/	98783.156
	=	-0.039795

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.

Takeda Pharmaceutical Co has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.

Takeda Pharmaceutical Co Beneish M-Score Related Terms

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Takeda Pharmaceutical Co (Takeda Pharmaceutical Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Takeda Pharmaceutical Co Ltd (NYSE:TAK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TKPHF:USA TAK:Mexico 4502:Japan 4502:Japan 4502:Japan 4502:Japan TKDA:Germany TKD:Germany TKD:Germany TAKP34:Brazil

Address

1-1, Nihonbashi-Honcho 2-Chome, Chuo-ku, Tokyo, JPN, 103-8668

Website

https://www.takeda.com

Takeda Pharmaceutical is Japan's largest pharmaceutical company, with revenue of JPY 4 trillion in fiscal 2022. The company's five core therapeutic areas are oncology, gastroenterology, neuroscience, rare diseases, and plasma-derived therapies, which account for more than 80% of revenue. Its geographic footprint is well diversified, with 50% derived from the U.S., 20% from Japan, 20% from Europe and Canada.