SoftBank Group (SoftBank Group) Beneish M-Score

: -2.53 (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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SFTBF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26 Med: -2.41 Max: -1.12
Current: -2.53

During the past 13 years, the highest Beneish M-Score of SoftBank Group was -1.12. The lowest was -3.26. And the median was -2.41.

SoftBank Group Beneish M-Score Historical Data

The historical data trend for SoftBank Group'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.

SoftBank Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.26

-3.14

-1.69

-2.88

-2.59

SoftBank Group 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															-2.81	-2.59	-2.29	-2.70	-2.53

Competitive Comparison

For the Telecom Services subindustry, SoftBank Group'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.

SoftBank Group Beneish M-Score Distribution

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

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

SoftBank Group 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 SoftBank Group 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 * 1.0227

0.528 * 1.0141

0.404 * 0.9789

0.892 * 0.9586

0.115 * 1.0124

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0732

4.679 * -0.014733

0.327 * 1.0269

-2.59

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $19,484 Mil.
Revenue was 12326.868 + 11292.59 + 11018.166 + 12678.524 = $47,316 Mil.
Gross Profit was 6479.055 + 6089.093 + 5886.292 + 5602.984 = $24,057 Mil.
Total Current Assets was $75,892 Mil.
Total Assets was $312,427 Mil.
Property, Plant and Equipment(Net PPE) was $18,331 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,223 Mil.
Selling, General, & Admin. Expense(SGA) was $20,497 Mil.
Total Current Liabilities was $82,900 Mil.
Long-Term Debt & Capital Lease Obligation was $99,393 Mil.
Net Income was 6598.098 + -6297.886 + -3378.766 + -431.162 = $-3,510 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 423.249 + 1767.669 + -1220.829 + 123.04 = $1,093 Mil.

Total Receivables was $19,875 Mil.
Revenue was 12550.854 + 11239.522 + 11734.904 + 13836.481 = $49,362 Mil.
Gross Profit was 6358.042 + 5845.288 + 6597.331 + 6650.551 = $25,451 Mil.
Total Current Assets was $70,717 Mil.
Total Assets was $313,852 Mil.
Property, Plant and Equipment(Net PPE) was $19,203 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,628 Mil.
Selling, General, & Admin. Expense(SGA) was $19,924 Mil.
Total Current Liabilities was $66,591 Mil.
Long-Term Debt & Capital Lease Obligation was $111,728 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)
	=	(19483.642 / 47316.148)	/	(19874.699 / 49361.761)
	=	0.411776	/	0.402634
	=	1.0227

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)
	=	(25451.212 / 49361.761)	/	(24057.424 / 47316.148)
	=	0.515606	/	0.50844
	=	1.0141

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 - (75892.382 + 18331.223) / 312427.291)	/	(1 - (70717.29 + 19202.882) / 313851.735)
	=	0.698414	/	0.713495
	=	0.9789

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
	=	47316.148	/	49361.761
	=	0.9586

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))
	=	(6627.564 / (6627.564 + 19202.882))	/	(6222.594 / (6222.594 + 18331.223))
	=	0.25658	/	0.253427
	=	1.0124

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)
	=	(20496.674 / 47316.148)	/	(19923.706 / 49361.761)
	=	0.433186	/	0.403626
	=	1.0732

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)
	=	((99392.603 + 82900.352) / 312427.291)	/	((111727.861 + 66591.367) / 313851.735)
	=	0.583473	/	0.568164
	=	1.0269

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
	=	(-3509.716 - 0	-	1093.129)	/	312427.291
	=	-0.014733

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.

SoftBank Group has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

SoftBank Group Beneish M-Score Related Terms

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SoftBank Group (SoftBank Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SoftBank Group Corp (OTCPK:SFTBF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SFTBY:USA SOFT:Mexico 9984:Japan SFT:Germany SFT:Austria

Address

1-9-1 Higashi-shimbashi, Minato-ku, Tokyo, JPN, 105-7303

Website

https://www.group.softbank

SoftBank is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 40%-owned mobile and fixed broadband telecom operator business in Japan. It also owns 90% of semiconductor chip designer ARM Holdings following the 2023 IPO of this business, and has a vast portfolio of mainly internet- and e-commerce-focused early stage investments. It is also general partner of the $100 billion SoftBank Vision Fund 1 and sole investor in SoftBank Vision Fund 2, both of which primarily invest in pre-IPO internet companies.