RCRUY (Recruit Holdings Co) Beneish M-Score : -2.80 (As of Mar. 24, 2025)

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What is Recruit Holdings 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 -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RCRUY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -2.62 Max: -1.99
Current: -2.8

During the past 11 years, the highest Beneish M-Score of Recruit Holdings Co was -1.99. The lowest was -3.14. And the median was -2.62.

Recruit Holdings Co Beneish M-Score Historical Data

The historical data trend for Recruit Holdings 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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Recruit Holdings Co Beneish M-Score Chart

Recruit Holdings Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.87

-2.61

-2.60

-2.66

-2.68

Recruit Holdings Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.62	-2.68	-2.78	-2.80	-2.80

Competitive Comparison of Recruit Holdings Co's Beneish M-Score

For the Internet Content & Information subindustry, Recruit Holdings 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.

Recruit Holdings Co's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Recruit Holdings Co's Beneish M-Score distribution charts can be found below:

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

Recruit Holdings 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 Recruit Holdings 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 * 1.0496

0.528 * 0.9867

0.404 * 1.0636

0.892 * 0.9765

0.115 * 0.9258

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9812

4.679 * -0.083609

0.327 * 1.1027

-2.87

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $3,723 Mil.
Revenue was 5831.688 + 6275.774 + 5711.124 + 5631.998 = $23,451 Mil.
Gross Profit was 3339.182 + 3683.325 + 3361.447 + 3285.173 = $13,669 Mil.
Total Current Assets was $10,070 Mil.
Total Assets was $18,911 Mil.
Property, Plant and Equipment(Net PPE) was $1,316 Mil.
Depreciation, Depletion and Amortization(DDA) was $746 Mil.
Selling, General, & Admin. Expense(SGA) was $10,318 Mil.
Total Current Liabilities was $4,949 Mil.
Long-Term Debt & Capital Lease Obligation was $1,014 Mil.
Net Income was 774.011 + 811.933 + 674.18 + 228.41 = $2,489 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1031.087 + 1059.075 + 808.609 + 1170.903 = $4,070 Mil.

Total Receivables was $3,632 Mil.
Revenue was 6020.044 + 5783.828 + 6018.955 + 6192.761 = $24,016 Mil.
Gross Profit was 3369.884 + 3324.637 + 3506.11 + 3611.802 = $13,812 Mil.
Total Current Assets was $11,487 Mil.
Total Assets was $20,977 Mil.
Property, Plant and Equipment(Net PPE) was $1,642 Mil.
Depreciation, Depletion and Amortization(DDA) was $827 Mil.
Selling, General, & Admin. Expense(SGA) was $10,769 Mil.
Total Current Liabilities was $4,823 Mil.
Long-Term Debt & Capital Lease Obligation was $1,175 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)
	=	(3722.508 / 23450.584)	/	(3632.14 / 24015.588)
	=	0.158738	/	0.151241
	=	1.0496

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)
	=	(13812.433 / 24015.588)	/	(13669.127 / 23450.584)
	=	0.575144	/	0.582891
	=	0.9867

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 - (10069.902 + 1316.328) / 18911.051)	/	(1 - (11486.698 + 1642.412) / 20976.764)
	=	0.397906	/	0.374112
	=	1.0636

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
	=	23450.584	/	24015.588
	=	0.9765

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))
	=	(827.452 / (827.452 + 1642.412))	/	(746.429 / (746.429 + 1316.328))
	=	0.335019	/	0.36186
	=	0.9258

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)
	=	(10317.644 / 23450.584)	/	(10768.704 / 24015.588)
	=	0.439974	/	0.448405
	=	0.9812

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)
	=	((1013.976 + 4948.74) / 18911.051)	/	((1175.283 + 4822.571) / 20976.764)
	=	0.315303	/	0.285928
	=	1.1027

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
	=	(2488.534 - 0	-	4069.674)	/	18911.051
	=	-0.083609

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.

Recruit Holdings Co has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

Recruit Holdings Co Beneish M-Score Related Terms

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Recruit Holdings Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Recruit Holdings Co Ltd (OTCPK:RCRUY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RCRRF:USA 6098:Japan 1RH:Germany

Address

1-9-2 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-6640

Website

https://www.recruit-holdings.com

Recruit is a holding company for various technology and employment-related businesses. Recruit's primary business is its HR technology segment, in which it owns two out of three globally scaled employment-related platforms: www.indeed.com, an online marketplace for employment; and www.glassdoor.com, an online review site for employers. Recruit also owns various marketing businesses operating in Japan for life events and lifestyle, a software solutions business for small and medium-size enterprises, or SMEs, in Japan, and various staffing businesses operating throughout the developed world.