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Daiichinkyo Co (Daiichinkyo Co) Beneish M-Score : -2.85 (As of Apr. 25, 2024)


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What is Daiichinkyo 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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DSNKY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Med: -2.48   Max: -1.67
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Daiichinkyo Co was -1.67. The lowest was -3.03. And the median was -2.48.


Daiichinkyo Co Beneish M-Score Historical Data

The historical data trend for Daiichinkyo 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.

Daiichinkyo Co Beneish M-Score Chart

Daiichinkyo 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 -2.86 -2.92 -2.50 -2.28 -

Daiichinkyo Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -2.28 -2.11 -2.05 -2.85 -

Competitive Comparison of Daiichinkyo Co's Beneish M-Score

For the Drug Manufacturers - General subindustry, Daiichinkyo 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.


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

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

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



Daiichinkyo 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 Daiichinkyo 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 * 0.9902+0.528 * 0.9659+0.404 * 0.9434+0.892 * 1.1721+0.115 * 1.2629
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0761+4.679 * -0.119776-0.327 * 0.946
=-2.90

* 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 $3,032 Mil.
Revenue was 2859.585 + 3104.045 + 2539.876 + 2481.888 = $10,985 Mil.
Gross Profit was 2161.661 + 2254.304 + 1899.09 + 1819.202 = $8,134 Mil.
Total Current Assets was $14,511 Mil.
Total Assets was $23,102 Mil.
Property, Plant and Equipment(Net PPE) was $2,815 Mil.
Depreciation, Depletion and Amortization(DDA) was $409 Mil.
Selling, General, & Admin. Expense(SGA) was $4,362 Mil.
Total Current Liabilities was $4,828 Mil.
Long-Term Debt & Capital Lease Obligation was $676 Mil.
Net Income was 248.08 + 462.268 + 270.506 + 403.323 = $1,384 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 200.022 + 4401.086 + -122.737 + -327.098 = $4,151 Mil.
Total Receivables was $2,612 Mil.
Revenue was 2470.383 + 2523.659 + 2285.526 + 2092.513 = $9,372 Mil.
Gross Profit was 1677.471 + 1797.46 + 1693.919 + 1534.153 = $6,703 Mil.
Total Current Assets was $11,185 Mil.
Total Assets was $18,770 Mil.
Property, Plant and Equipment(Net PPE) was $2,610 Mil.
Depreciation, Depletion and Amortization(DDA) was $498 Mil.
Selling, General, & Admin. Expense(SGA) was $3,458 Mil.
Total Current Liabilities was $3,967 Mil.
Long-Term Debt & Capital Lease Obligation was $761 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)
=(3031.586 / 10985.394) / (2611.849 / 9372.081)
=0.275965 / 0.278684
=0.9902

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)
=(6703.003 / 9372.081) / (8134.257 / 10985.394)
=0.71521 / 0.740461
=0.9659

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 - (14511.042 + 2814.684) / 23102.172) / (1 - (11185.118 + 2610.36) / 18770.075)
=0.250039 / 0.265028
=0.9434

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
=10985.394 / 9372.081
=1.1721

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))
=(498.203 / (498.203 + 2610.36)) / (409.114 / (409.114 + 2814.684))
=0.160268 / 0.126904
=1.2629

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)
=(4362.302 / 10985.394) / (3458.407 / 9372.081)
=0.3971 / 0.369012
=1.0761

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)
=((676.244 + 4828.499) / 23102.172) / ((760.802 + 3967.125) / 18770.075)
=0.238278 / 0.251886
=0.946

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
=(1384.177 - 0 - 4151.273) / 23102.172
=-0.119776

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.

Daiichinkyo Co has a M-score of -2.90 suggests that the company is unlikely to be a manipulator.


Daiichinkyo Co Beneish M-Score Related Terms

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Daiichinkyo Co (Daiichinkyo Co) Business Description

Traded in Other Exchanges
Address
3-5-1, Nihonbashi-honcho, Chuo-ku, Tokyo, JPN, 103-8426
Daiichi Sankyo was established by the merger of Daiichi Pharmaceuticals and Sankyo in 2005. As of 2021, approximately half of revenue comes from its Japan businesses, which will shrink in the future as the company expands its global footprint. Its primary growth driver is its leading platform of antibody drug conjugates. Its three lead ADCs are Enhertu (HER2), Dato-DXd (TROP2), I-DXd (B7-H3), HER3-DXd (HER3), and R-DXd (CDH6). Enhertu entered the clinic in 2015 and received its first U.S approval in December 2019 for third-line late-stage HER2-positive breast cancer. It is also approved for HER2-positive stomach cancers and HER2 mutant non-small cell lung cancer.