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Ohmori Co (TSE:1844) Beneish M-Score : -1.10 (As of Jun. 24, 2024)


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What is Ohmori 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.

Warning Sign:

Beneish M-Score -1.1 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSE:1844' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Med: -2.09   Max: -0.95
Current: -1.1

During the past 13 years, the highest Beneish M-Score of Ohmori Co was -0.95. The lowest was -3.28. And the median was -2.09.


Ohmori Co Beneish M-Score Historical Data

The historical data trend for Ohmori 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.

* Premium members only.

Ohmori Co Beneish M-Score Chart

Ohmori Co Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.33 -2.75 -2.75 -2.39 -1.10

Ohmori Co Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -1.10 - - -

Competitive Comparison of Ohmori Co's Beneish M-Score

For the Engineering & Construction subindustry, Ohmori 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.


Ohmori Co's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ohmori Co's Beneish M-Score distribution charts can be found below:

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



Ohmori 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 Ohmori Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4764+0.528 * 0.9989+0.404 * 0.7185+0.892 * 1.1543+0.115 * 0.8266
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.838+4.679 * 0.196707-0.327 * 1.0364
=-1.10

* 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.

This Year (Jul23) TTM:Last Year (Jul22) TTM:
Total Receivables was 円2,648 Mil.
Revenue was 円6,054 Mil.
Gross Profit was 円1,014 Mil.
Total Current Assets was 円10,395 Mil.
Total Assets was 円11,406 Mil.
Property, Plant and Equipment(Net PPE) was 円714 Mil.
Depreciation, Depletion and Amortization(DDA) was 円82 Mil.
Selling, General, & Admin. Expense(SGA) was 円48 Mil.
Total Current Liabilities was 円2,194 Mil.
Long-Term Debt & Capital Lease Obligation was 円4,009 Mil.
Net Income was 円293 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-1,950 Mil.
Total Receivables was 円1,554 Mil.
Revenue was 円5,245 Mil.
Gross Profit was 円877 Mil.
Total Current Assets was 円8,162 Mil.
Total Assets was 円9,538 Mil.
Property, Plant and Equipment(Net PPE) was 円1,031 Mil.
Depreciation, Depletion and Amortization(DDA) was 円96 Mil.
Selling, General, & Admin. Expense(SGA) was 円49 Mil.
Total Current Liabilities was 円2,085 Mil.
Long-Term Debt & Capital Lease Obligation was 円2,920 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)
=(2648.21 / 6054.024) / (1553.95 / 5244.818)
=0.43743 / 0.296283
=1.4764

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)
=(877.414 / 5244.818) / (1013.86 / 6054.024)
=0.167292 / 0.167469
=0.9989

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 - (10395.316 + 714.182) / 11406.497) / (1 - (8161.513 + 1031.143) / 9538.312)
=0.026038 / 0.036239
=0.7185

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
=6054.024 / 5244.818
=1.1543

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))
=(96.359 / (96.359 + 1031.143)) / (82.35 / (82.35 + 714.182))
=0.085462 / 0.103386
=0.8266

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)
=(47.614 / 6054.024) / (49.222 / 5244.818)
=0.007865 / 0.009385
=0.838

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)
=((4008.946 + 2194.426) / 11406.497) / ((2919.792 + 2085.263) / 9538.312)
=0.543845 / 0.524732
=1.0364

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
=(293.239 - 0 - -1950.494) / 11406.497
=0.196707

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.

Ohmori Co has a M-score of -1.10 signals that the company is likely to be a manipulator.


Ohmori Co Beneish M-Score Related Terms

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Ohmori Co (TSE:1844) Business Description

Traded in Other Exchanges
N/A
Address
1st Kantadacho 2-chome, Chiyoda-ku, Kanda Shinkansen Building, 8th floor, Tokyo, JPN, 101-0046
Ohmori Co Ltd is a Japan-based construction company. Its business activities are divided into three segments including Civil engineering, Real estate, and New Business. Civil engineering segment is mainly engaged in the construction of upper and lower waterworks. Real estate segment is engaged in the sale and leasing of properties and OLY equipment. The new business segment includes solar power generation business and it also lends storage spaces for companies and general customers.

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