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Koei Tecmo Holdings Co (TSE:3635) Beneish M-Score : -2.85 (As of Dec. 14, 2024)


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What is Koei Tecmo Holdings 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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:3635' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.43   Max: -1.81
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Koei Tecmo Holdings Co was -1.81. The lowest was -2.97. And the median was -2.43.


Koei Tecmo Holdings Co Beneish M-Score Historical Data

The historical data trend for Koei Tecmo Holdings 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.

Koei Tecmo Holdings Co Beneish M-Score Chart

Koei Tecmo Holdings Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.42 -2.44 -2.97 -1.81 -2.85

Koei Tecmo Holdings Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 - - -2.85 - -

Competitive Comparison of Koei Tecmo Holdings Co's Beneish M-Score

For the Electronic Gaming & Multimedia subindustry, Koei Tecmo Holdings 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.


Koei Tecmo Holdings Co's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Koei Tecmo Holdings Co's Beneish M-Score distribution charts can be found below:

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



Koei Tecmo Holdings 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 Koei Tecmo Holdings 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 * 0.6441+0.528 * 1.1139+0.404 * 0.7998+0.892 * 1.0786+0.115 * 0.8994
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3829+4.679 * -0.011436-0.327 * 0.8779
=-2.85

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was 円15,041 Mil.
Revenue was 円84,584 Mil.
Gross Profit was 円55,294 Mil.
Total Current Assets was 円92,951 Mil.
Total Assets was 円245,802 Mil.
Property, Plant and Equipment(Net PPE) was 円36,477 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,813 Mil.
Selling, General, & Admin. Expense(SGA) was 円26,799 Mil.
Total Current Liabilities was 円68,928 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円33,792 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円36,603 Mil.
Total Receivables was 円21,650 Mil.
Revenue was 円78,417 Mil.
Gross Profit was 円57,099 Mil.
Total Current Assets was 円49,113 Mil.
Total Assets was 円210,889 Mil.
Property, Plant and Equipment(Net PPE) was 円36,936 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,643 Mil.
Selling, General, & Admin. Expense(SGA) was 円17,966 Mil.
Total Current Liabilities was 円20,019 Mil.
Long-Term Debt & Capital Lease Obligation was 円47,341 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)
=(15041 / 84584) / (21650 / 78417)
=0.177823 / 0.276088
=0.6441

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)
=(57099 / 78417) / (55294 / 84584)
=0.728146 / 0.653717
=1.1139

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 - (92951 + 36477) / 245802) / (1 - (49113 + 36936) / 210889)
=0.473446 / 0.59197
=0.7998

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
=84584 / 78417
=1.0786

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))
=(1643 / (1643 + 36936)) / (1813 / (1813 + 36477))
=0.042588 / 0.047349
=0.8994

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)
=(26799 / 84584) / (17966 / 78417)
=0.316833 / 0.229108
=1.3829

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 + 68928) / 245802) / ((47341 + 20019) / 210889)
=0.280421 / 0.31941
=0.8779

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
=(33792 - 0 - 36603) / 245802
=-0.011436

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.

Koei Tecmo Holdings Co has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.


Koei Tecmo Holdings Co Beneish M-Score Related Terms

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Koei Tecmo Holdings Co Business Description

Traded in Other Exchanges
Address
1-18-12 Minowa-cho, Kouhoku-ku, Yokohama, JPN, 223-8503
Koei Tecmo Holdings Co Ltd is a game software development company based in Japan. The company's segments include Game Software, which develops and sells game software for PCs and videogame systems; Online & Mobile; Media & Rights, which develops and sells game software related products such as books, CDs, and DVDs; SP, which develops commercial amusement; Amusement Facilities Operation, and Other, which includes real estate management and venture capital. Koei Tecmo generates the vast majority of its revenue from its Game Software segment. The firm has operations in Japan, North America, Europe, and other countries. Koei Tecmo derives substantially most of its revenue from its Japanese operations.

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