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Sobal (TSE:2186) Beneish M-Score : -1.98 (As of Mar. 15, 2025)


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What is Sobal 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 -1.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:2186' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.33   Max: -1.98
Current: -1.98

During the past 13 years, the highest Beneish M-Score of Sobal was -1.98. The lowest was -3.17. And the median was -2.33.


Sobal Beneish M-Score Historical Data

The historical data trend for Sobal'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.

Sobal Beneish M-Score Chart

Sobal Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.17 -2.43 -2.38 -2.27 -1.98

Sobal Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 - - -1.98 - -

Competitive Comparison of Sobal's Beneish M-Score

For the Software - Application subindustry, Sobal'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.


Sobal's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Sobal's Beneish M-Score distribution charts can be found below:

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



Sobal 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 Sobal 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 * 1.0859+0.528 * 1.0076+0.404 * 0.8972+0.892 * 1.0013+0.115 * 0.8561
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.081901-0.327 * 0.7193
=-1.98

* 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 (Feb24) TTM:Last Year (Feb23) TTM:
Total Receivables was 円1,195 Mil.
Revenue was 円8,170 Mil.
Gross Profit was 円1,614 Mil.
Total Current Assets was 円4,358 Mil.
Total Assets was 円5,098 Mil.
Property, Plant and Equipment(Net PPE) was 円459 Mil.
Depreciation, Depletion and Amortization(DDA) was 円15 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円797 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円514 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円96 Mil.
Total Receivables was 円1,099 Mil.
Revenue was 円8,159 Mil.
Gross Profit was 円1,624 Mil.
Total Current Assets was 円4,390 Mil.
Total Assets was 円5,182 Mil.
Property, Plant and Equipment(Net PPE) was 円472 Mil.
Depreciation, Depletion and Amortization(DDA) was 円13 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円1,125 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 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)
=(1195.009 / 8169.683) / (1099.078 / 8159.159)
=0.146274 / 0.134705
=1.0859

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)
=(1623.907 / 8159.159) / (1613.76 / 8169.683)
=0.199029 / 0.19753
=1.0076

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 - (4357.594 + 458.574) / 5098.438) / (1 - (4390.078 + 471.877) / 5181.708)
=0.055364 / 0.061708
=0.8972

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
=8169.683 / 8159.159
=1.0013

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))
=(13.371 / (13.371 + 471.877)) / (15.251 / (15.251 + 458.574))
=0.027555 / 0.032187
=0.8561

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 / 8169.683) / (0 / 8159.159)
=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 + 796.522) / 5098.438) / ((0 + 1125.496) / 5181.708)
=0.156229 / 0.217206
=0.7193

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
=(513.556 - 0 - 95.987) / 5098.438
=0.081901

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.

Sobal has a M-score of -1.98 suggests that the company is unlikely to be a manipulator.


Sobal Business Description

Traded in Other Exchanges
N/A
Address
5-9-11 Kitashinagawa Shinagawa-ku, Osaki MT Building, Tokyo, JPN, 141-0001
Sobal Corp engages in the development of embedded software for digital appliances, and research and development of wireless communication technologies in Japan. The solutions provided by the company include Embedded development, Application development, WEB. Cloud development, Manual production, Quality evaluation and IoT Solution.

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