Sotsu Co (Sotsu Co) Beneish M-Score : 0.00 (As of May. 17, 2024)

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What is Sotsu 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.

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

During the past 12 years, the highest Beneish M-Score of Sotsu Co was -1.52. The lowest was -2.55. And the median was -2.18.

Sotsu Co Beneish M-Score Historical Data

The historical data trend for Sotsu 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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Sotsu Co Beneish M-Score Chart

Sotsu Co Annual Data

Trend

Aug10

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Beneish M-Score

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-2.14

Sotsu Co Quarterly Data
	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Sotsu Co's Beneish M-Score

For the Entertainment subindustry, Sotsu 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.

Sotsu Co's Beneish M-Score Distribution in the Media - Diversified Industry

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

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

Sotsu 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 Sotsu 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 * 0.72

0.528 * 0.8648

0.404 * 1.0771

0.892 * 0.8932

0.115 * 0.8779

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.02773

0.327 * 0.8046

-2.95

This Year (Aug19) TTM:

Last Year (Aug18) TTM:

Total Receivables was $19.54 Mil.
Revenue was $135.79 Mil.
Gross Profit was $34.18 Mil.
Total Current Assets was $227.98 Mil.
Total Assets was $260.47 Mil.
Property, Plant and Equipment(Net PPE) was $3.72 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.18 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $36.62 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $17.20 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $24.42 Mil.

Total Receivables was $30.38 Mil.
Revenue was $152.02 Mil.
Gross Profit was $33.09 Mil.
Total Current Assets was $212.09 Mil.
Total Assets was $240.33 Mil.
Property, Plant and Equipment(Net PPE) was $3.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.15 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $42.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(19.538 / 135.79)	/	(30.378 / 152.018)
	=	0.143884	/	0.199832
	=	0.72

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)
	=	(33.088 / 152.018)	/	(34.176 / 135.79)
	=	0.217658	/	0.251683
	=	0.8648

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 - (227.982 + 3.715) / 260.474)	/	(1 - (212.092 + 3.583) / 240.326)
	=	0.110479	/	0.102573
	=	1.0771

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
	=	135.79	/	152.018
	=	0.8932

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))
	=	(0.149 / (0.149 + 3.583))	/	(0.177 / (0.177 + 3.715))
	=	0.039925	/	0.045478
	=	0.8779

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)
	=	(0 / 135.79)	/	(0 / 152.018)
	=	0	/	0
	=	1

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 + 36.623) / 260.474)	/	((0 + 41.997) / 240.326)
	=	0.140601	/	0.17475
	=	0.8046

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
	=	(17.2 - 0	-	24.423)	/	260.474
	=	-0.02773

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.

Sotsu Co has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

Sotsu Co Beneish M-Score Related Terms

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Sotsu Co (Sotsu Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Sotsu Co Ltd (GREY:STUAF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-4-1, Hamamatsu-Cho, Minato-Ku, Tokyo, JPN, 105-6126

Website

http://www.sotsu-co.jp

Sotsu Co Ltd operates as an entertainment company in Japan. It works in Media division, Rights division, and Sports division. The Media division produces animations by planning and creating animated programmes with animation production companies. The Rights business division provides merchandising licenses for the animation characters to its partner companies including toy, game, food, miscellaneous goods, and apparel manufacturers among others, and the Sport business promote the merchandising of the baseball team's products and act as a copyright contract agency for professional baseball teams, and sell the merchandise to baseball team goods stores both inside and outside the stadium.

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