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ValueCommerce Co (TSE:2491) Beneish M-Score : -2.61 (As of Jun. 12, 2024)


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What is ValueCommerce 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.

Good Sign:

Beneish M-Score -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:2491' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01   Med: -2.61   Max: -1.99
Current: -2.61

During the past 13 years, the highest Beneish M-Score of ValueCommerce Co was -1.99. The lowest was -3.01. And the median was -2.61.


ValueCommerce Co Beneish M-Score Historical Data

The historical data trend for ValueCommerce 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.

ValueCommerce Co Beneish M-Score Chart

ValueCommerce Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.07 -2.91 -3.01 -2.64 -2.61

ValueCommerce Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 - - - -2.61 -

Competitive Comparison of ValueCommerce Co's Beneish M-Score

For the Advertising Agencies subindustry, ValueCommerce 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.


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

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

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



ValueCommerce 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 ValueCommerce 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 * 1.0412+0.528 * 1.0404+0.404 * 0.8058+0.892 * 0.8232+0.115 * 0.945
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.003492-0.327 * 0.7896
=-2.61

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was 円5,017 Mil.
Revenue was 円29,396 Mil.
Gross Profit was 円10,149 Mil.
Total Current Assets was 円26,665 Mil.
Total Assets was 円28,351 Mil.
Property, Plant and Equipment(Net PPE) was 円175 Mil.
Depreciation, Depletion and Amortization(DDA) was 円473 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円5,802 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円3,400 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円3,499 Mil.
Total Receivables was 円5,853 Mil.
Revenue was 円35,708 Mil.
Gross Profit was 円12,826 Mil.
Total Current Assets was 円26,122 Mil.
Total Assets was 円28,197 Mil.
Property, Plant and Equipment(Net PPE) was 円210 Mil.
Depreciation, Depletion and Amortization(DDA) was 円467 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円7,308 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)
=(5017 / 29396) / (5853 / 35708)
=0.170669 / 0.163913
=1.0412

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)
=(12826 / 35708) / (10149 / 29396)
=0.359191 / 0.345251
=1.0404

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 - (26665 + 175) / 28351) / (1 - (26122 + 210) / 28197)
=0.053296 / 0.066142
=0.8058

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
=29396 / 35708
=0.8232

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))
=(467 / (467 + 210)) / (473 / (473 + 175))
=0.689808 / 0.729938
=0.945

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 / 29396) / (0 / 35708)
=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 + 5802) / 28351) / ((0 + 7308) / 28197)
=0.204649 / 0.259177
=0.7896

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
=(3400 - 0 - 3499) / 28351
=-0.003492

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.

ValueCommerce Co has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


ValueCommerce Co Beneish M-Score Related Terms

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ValueCommerce Co (TSE:2491) Business Description

Traded in Other Exchanges
N/A
Address
Nihonseimei Akasaka Building 5F, 8-1-19 Akasaka, Minato, Tokyo, JPN, 107-0052
ValueCommerce Co Ltd is a Japan-based information technology company engaged in the provision of internet advertising delivery services. The company's service portfolio comprises affiliate marketing service, StoreMatch service and Store's R8. The affiliate marketing service provides compensation based on the performances of advertising for e-commerce sites. The StoreMatch Service provides pay-per-click internet advertising for stores listing on online shopping malls. The Store's R8 service is a marketing automation system customized for Yahoo! shopping.

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