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DNA Chip Research (TSE:2397) Beneish M-Score : -3.36 (As of May. 04, 2024)


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What is DNA Chip Research 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 -3.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:2397' s Beneish M-Score Range Over the Past 10 Years
Min: -4.2   Med: -2.79   Max: 0.43
Current: -3.36

During the past 13 years, the highest Beneish M-Score of DNA Chip Research was 0.43. The lowest was -4.20. And the median was -2.79.


DNA Chip Research Beneish M-Score Historical Data

The historical data trend for DNA Chip Research'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.

DNA Chip Research Beneish M-Score Chart

DNA Chip Research Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.03 0.43 -2.95 -2.76 -3.36

DNA Chip Research Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - -3.36 - - -

Competitive Comparison of DNA Chip Research's Beneish M-Score

For the Diagnostics & Research subindustry, DNA Chip Research'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.


DNA Chip Research's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, DNA Chip Research's Beneish M-Score distribution charts can be found below:

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



DNA Chip Research 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 DNA Chip Research 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 * 1.3538+0.528 * -1.9193+0.404 * 1.3391+0.892 * 0.7654+0.115 * 6.4207
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.029421-0.327 * 1.2497
=-3.36

* 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 (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was 円179.3 Mil.
Revenue was 円327.5 Mil.
Gross Profit was 円-35.6 Mil.
Total Current Assets was 円525.1 Mil.
Total Assets was 円871.1 Mil.
Property, Plant and Equipment(Net PPE) was 円113.5 Mil.
Depreciation, Depletion and Amortization(DDA) was 円17.8 Mil.
Selling, General, & Admin. Expense(SGA) was 円0.0 Mil.
Total Current Liabilities was 円121.5 Mil.
Long-Term Debt & Capital Lease Obligation was 円0.0 Mil.
Net Income was 円-362.3 Mil.
Gross Profit was 円0.0 Mil.
Cash Flow from Operations was 円-336.7 Mil.
Total Receivables was 円173.1 Mil.
Revenue was 円427.9 Mil.
Gross Profit was 円89.2 Mil.
Total Current Assets was 円710.2 Mil.
Total Assets was 円890.0 Mil.
Property, Plant and Equipment(Net PPE) was 円2.4 Mil.
Depreciation, Depletion and Amortization(DDA) was 円16.5 Mil.
Selling, General, & Admin. Expense(SGA) was 円0.0 Mil.
Total Current Liabilities was 円99.3 Mil.
Long-Term Debt & Capital Lease Obligation was 円0.0 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)
=(179.337 / 327.535) / (173.072 / 427.935)
=0.547535 / 0.404435
=1.3538

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)
=(89.215 / 427.935) / (-35.578 / 327.535)
=0.208478 / -0.108624
=-1.9193

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 - (525.122 + 113.513) / 871.134) / (1 - (710.208 + 2.436) / 890.034)
=0.266892 / 0.199307
=1.3391

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
=327.535 / 427.935
=0.7654

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))
=(16.471 / (16.471 + 2.436)) / (17.819 / (17.819 + 113.513))
=0.871159 / 0.135679
=6.4207

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 / 327.535) / (0 / 427.935)
=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 + 121.495) / 871.134) / ((0 + 99.329) / 890.034)
=0.139468 / 0.111601
=1.2497

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
=(-362.343 - 0 - -336.713) / 871.134
=-0.029421

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.

DNA Chip Research has a M-score of -3.36 suggests that the company is unlikely to be a manipulator.


DNA Chip Research Beneish M-Score Related Terms

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DNA Chip Research (TSE:2397) Business Description

Traded in Other Exchanges
N/A
Address
1-1-43 Suehirocho, Tsurumi-ku, Yokohama, JPN
DNA Chip Research Inc is specializing in the development of DNA microarrays. Its major business is focused on research and development, contract research service, and diagnostic support service. The company provides a wide variety of analytical services, from DNA chips to state-of-the-art next-generation sequencing. In addition, it provides consultation on experimental planning, sample preparation, statistical analysis, and manuscript preparation, catering to researchers' needs and requirements.

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