Internet Initiative Japan (Internet Initiative Japan) Beneish M-Score

: -2.66 (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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

IIJIY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38 Med: -2.82 Max: -2.29
Current: -2.66

During the past 13 years, the highest Beneish M-Score of Internet Initiative Japan was -2.29. The lowest was -3.38. And the median was -2.82.

Internet Initiative Japan Beneish M-Score Historical Data

The historical data trend for Internet Initiative Japan'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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Internet Initiative Japan Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-3.10

-3.25

-3.09

-3.03

-2.73

Internet Initiative Japan 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															-2.86	-2.73	-2.85	-2.87	-2.66

Competitive Comparison

For the Telecom Services subindustry, Internet Initiative Japan'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.

Internet Initiative Japan Beneish M-Score Distribution

For the Telecommunication Services industry and Communication Services sector, Internet Initiative Japan's Beneish M-Score distribution charts can be found below:

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

Internet Initiative Japan 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 Internet Initiative Japan 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 * 1.1265

0.528 * 0.9932

0.404 * 1.0514

0.892 * 1.0189

0.115 * 1.0183

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.003

4.679 * -0.076581

0.327 * 1.1148

-2.72

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $335 Mil.
Revenue was 506.315 + 451.676 + 434.499 + 504.016 = $1,897 Mil.
Gross Profit was 116.432 + 104.089 + 97.624 + 121.588 = $440 Mil.
Total Current Assets was $804 Mil.
Total Assets was $1,823 Mil.
Property, Plant and Equipment(Net PPE) was $478 Mil.
Depreciation, Depletion and Amortization(DDA) was $208 Mil.
Selling, General, & Admin. Expense(SGA) was $236 Mil.
Total Current Liabilities was $673 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Net Income was 32.344 + 32.054 + 25.347 + 44.769 = $135 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 80.121 + 74.639 + 35.484 + 83.904 = $274 Mil.

Total Receivables was $292 Mil.
Revenue was 469.756 + 445.073 + 434.377 + 512.197 = $1,861 Mil.
Gross Profit was 112.404 + 96.256 + 94.803 + 125.184 = $429 Mil.
Total Current Assets was $765 Mil.
Total Assets was $1,741 Mil.
Property, Plant and Equipment(Net PPE) was $485 Mil.
Depreciation, Depletion and Amortization(DDA) was $217 Mil.
Selling, General, & Admin. Expense(SGA) was $231 Mil.
Total Current Liabilities was $549 Mil.
Long-Term Debt & Capital Lease Obligation was $27 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)
	=	(335.161 / 1896.506)	/	(292.014 / 1861.403)
	=	0.176726	/	0.156878
	=	1.1265

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)
	=	(428.647 / 1861.403)	/	(439.733 / 1896.506)
	=	0.230282	/	0.231865
	=	0.9932

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 - (804.02 + 478.089) / 1823.359)	/	(1 - (764.542 + 484.75) / 1740.788)
	=	0.296842	/	0.282341
	=	1.0514

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
	=	1896.506	/	1861.403
	=	1.0189

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))
	=	(216.874 / (216.874 + 484.75))	/	(208.378 / (208.378 + 478.089))
	=	0.309103	/	0.303551
	=	1.0183

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)
	=	(236.179 / 1896.506)	/	(231.107 / 1861.403)
	=	0.124534	/	0.124157
	=	1.003

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)
	=	((0.417 + 672.732) / 1823.359)	/	((27.21 + 549.25) / 1740.788)
	=	0.369181	/	0.331149
	=	1.1148

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
	=	(134.514 - 0	-	274.148)	/	1823.359
	=	-0.076581

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.

Internet Initiative Japan has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

Internet Initiative Japan Beneish M-Score Related Terms

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Internet Initiative Japan (Internet Initiative Japan) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Internet Initiative Japan Inc (OTCPK:IIJIY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

IIJIF:USA 3774:Japan IIJ:Germany

Address

Iidabashi Grand Bloom, 2-10-2 Fujimi, Chiyoda-ku, Tokyo, JPN, 102-0071

Website

https://www.iij.ad.jp

Internet Initiative Japan Inc. is a provider of a variety of services including Internet access, outsourcing, and systems integration. Its Internet access services span dial-up, mobile, and broadband technologies. Its wide area network services allow secure data sharing over Internet virtual private networks, independently developed routers, and closed wide area networks. Its outsourcing services include cloud, content delivery, data center, and security services. The firm generates nearly all its revenue in Japan.