SMTUF (Sumitomo Rubber Industries) Beneish M-Score : -2.91 (As of Dec. 14, 2024)

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What is Sumitomo Rubber Industries 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 -2.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SMTUF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26 Med: -2.62 Max: -2.08
Current: -2.91

During the past 13 years, the highest Beneish M-Score of Sumitomo Rubber Industries was -2.08. The lowest was -3.26. And the median was -2.62.

Sumitomo Rubber Industries Beneish M-Score Historical Data

The historical data trend for Sumitomo Rubber Industries'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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Sumitomo Rubber Industries Beneish M-Score Chart

Sumitomo Rubber Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.87

-3.01

-2.50

-2.43

-2.95

Sumitomo Rubber Industries Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.75	-2.95	-2.92	-2.91	-

Competitive Comparison of Sumitomo Rubber Industries's Beneish M-Score

For the Auto Parts subindustry, Sumitomo Rubber Industries'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.

Sumitomo Rubber Industries's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Rubber Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sumitomo Rubber Industries's Beneish M-Score falls into.

Sumitomo Rubber Industries 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 Sumitomo Rubber Industries 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 * 0.9217

0.528 * 0.7478

0.404 * 1.0709

0.892 * 0.9677

0.115 * 1.0076

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0625

4.679 * -0.08308

0.327 * 0.8531

-3.04

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was $1,310 Mil.
Revenue was 1873.058 + 1944.752 + 2269.021 + 1958.409 = $8,045 Mil.
Gross Profit was 555.771 + 594.219 + 732.886 + 572.133 = $2,455 Mil.
Total Current Assets was $4,101 Mil.
Total Assets was $8,588 Mil.
Property, Plant and Equipment(Net PPE) was $3,155 Mil.
Depreciation, Depletion and Amortization(DDA) was $546 Mil.
Selling, General, & Admin. Expense(SGA) was $1,763 Mil.
Total Current Liabilities was $2,018 Mil.
Long-Term Debt & Capital Lease Obligation was $1,174 Mil.
Net Income was 87.977 + 165.807 + 68.363 + 128.574 = $451 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 265.121 + 117.549 + 417.54 + 363.996 = $1,164 Mil.

Total Receivables was $1,469 Mil.
Revenue was 2011.912 + 2070.568 + 2350.758 + 1880.178 = $8,313 Mil.
Gross Profit was 490.166 + 502.026 + 517.571 + 387.223 = $1,897 Mil.
Total Current Assets was $4,390 Mil.
Total Assets was $8,841 Mil.
Property, Plant and Equipment(Net PPE) was $3,171 Mil.
Depreciation, Depletion and Amortization(DDA) was $554 Mil.
Selling, General, & Admin. Expense(SGA) was $1,714 Mil.
Total Current Liabilities was $2,549 Mil.
Long-Term Debt & Capital Lease Obligation was $1,303 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)
	=	(1310.497 / 8045.24)	/	(1469.29 / 8313.416)
	=	0.162891	/	0.176737
	=	0.9217

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)
	=	(1896.986 / 8313.416)	/	(2455.009 / 8045.24)
	=	0.228184	/	0.30515
	=	0.7478

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 - (4101.432 + 3155.41) / 8587.907)	/	(1 - (4390.445 + 3171.237) / 8841.248)
	=	0.154993	/	0.144727
	=	1.0709

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
	=	8045.24	/	8313.416
	=	0.9677

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))
	=	(553.637 / (553.637 + 3171.237))	/	(545.994 / (545.994 + 3155.41))
	=	0.148632	/	0.14751
	=	1.0076

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)
	=	(1762.904 / 8045.24)	/	(1714.469 / 8313.416)
	=	0.219124	/	0.206229
	=	1.0625

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)
	=	((1173.876 + 2017.927) / 8587.907)	/	((1302.833 + 2548.81) / 8841.248)
	=	0.371663	/	0.435645
	=	0.8531

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
	=	(450.721 - 0	-	1164.206)	/	8587.907
	=	-0.08308

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.

Sumitomo Rubber Industries has a M-score of -3.04 suggests that the company is unlikely to be a manipulator.

Sumitomo Rubber Industries Beneish M-Score Related Terms

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Sumitomo Rubber Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Sumitomo Rubber Industries Ltd (OTCPK:SMTUF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

5110:Japan 108:Germany

Address

3-6-9, Wakinohama-cho, Chuo-ku, Hyogo, Kobe, JPN, 651-0072

Website

http://www.srigroup.co.jp

Sumitomo Rubber Industries Ltd makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. More revenue comes from Japan than any other region.

Sumitomo Rubber Industries Headlines

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