SOBKY (SoftBank) Beneish M-Score : -2.70 (As of Jan. 18, 2025)

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What is SoftBank 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SOBKY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.63 Max: -2.24
Current: -2.7

During the past 10 years, the highest Beneish M-Score of SoftBank was -2.24. The lowest was -2.92. And the median was -2.63.

SoftBank Beneish M-Score Historical Data

The historical data trend for SoftBank'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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SoftBank Beneish M-Score Chart

SoftBank Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.84

-2.60

-2.71

-2.54

-2.63

SoftBank 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															-2.46	-2.63	-2.63	-2.65	-2.70

Competitive Comparison of SoftBank's Beneish M-Score

For the Telecom Services subindustry, SoftBank'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's Beneish M-Score Distribution in the Telecommunication Services Industry

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

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

SoftBank 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 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 * 1.1041

0.528 * 0.9606

0.404 * 1.031

0.892 * 0.979

0.115 * 1.1493

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0086

4.679 * -0.053747

0.327 * 0.9955

-2.65

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $17,976 Mil.
Revenue was 11306.833 + 9728.38 + 10495.613 + 10958.394 = $42,489 Mil.
Gross Profit was 5626.083 + 4899.227 + 4768.547 + 5220.705 = $20,515 Mil.
Total Current Assets was $33,769 Mil.
Total Assets was $108,212 Mil.
Property, Plant and Equipment(Net PPE) was $18,139 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,981 Mil.
Selling, General, & Admin. Expense(SGA) was $14,443 Mil.
Total Current Liabilities was $45,623 Mil.
Long-Term Debt & Capital Lease Obligation was $30,457 Mil.
Net Income was 1128.664 + 1029.456 + 549.945 + 726.072 = $3,434 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 3110.126 + 1674.572 + 1670.7 + 2794.845 = $9,250 Mil.

Total Receivables was $16,629 Mil.
Revenue was 10173.438 + 10113.789 + 11719.958 + 11391.663 = $43,399 Mil.
Gross Profit was 5081.809 + 5064.634 + 4746.668 + 5235.949 = $20,129 Mil.
Total Current Assets was $33,780 Mil.
Total Assets was $101,750 Mil.
Property, Plant and Equipment(Net PPE) was $16,619 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,469 Mil.
Selling, General, & Admin. Expense(SGA) was $14,627 Mil.
Total Current Liabilities was $46,795 Mil.
Long-Term Debt & Capital Lease Obligation was $25,063 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)
	=	(17975.81 / 42489.22)	/	(16628.773 / 43398.848)
	=	0.423068	/	0.383162
	=	1.1041

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)
	=	(20129.06 / 43398.848)	/	(20514.562 / 42489.22)
	=	0.463816	/	0.482818
	=	0.9606

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 - (33769.087 + 18138.8) / 108212.376)	/	(1 - (33779.539 + 16618.513) / 101749.691)
	=	0.520315	/	0.504686
	=	1.031

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
	=	42489.22	/	43398.848
	=	0.979

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))
	=	(5468.883 / (5468.883 + 16618.513))	/	(4980.744 / (4980.744 + 18138.8))
	=	0.247602	/	0.215434
	=	1.1493

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)
	=	(14443.136 / 42489.22)	/	(14626.653 / 43398.848)
	=	0.339925	/	0.337029
	=	1.0086

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)
	=	((30456.559 + 45623.228) / 108212.376)	/	((25062.829 + 46795.428) / 101749.691)
	=	0.70306	/	0.706226
	=	0.9955

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
	=	(3434.137 - 0	-	9250.243)	/	108212.376
	=	-0.053747

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 has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.

SoftBank Beneish M-Score Related Terms

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SoftBank Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

SFBQF:USA 9434:Japan 3AG1:Germany

Address

1-7-1 Kaigan, Minato-ku, Tokyo, JPN, 105-7529

Website

https://www.softbank.jp

SoftBank is an established, telecommunications services provider in Japan owning a mobile network with around 50 million mobile customers and 24% market share. It also provides some fixed line services, which are mostly resold so are low margin. The company also owns 32.4% of LY Corp, and SoftBank and LY Corp each own 32% of PayPay so SoftBank consolidates PayPay. SoftBank Group sold 33.5% of the SoftBank Corp in an IPO in 2018 and sold down further to a 42% holding in 2020.