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Sumitomo Riko Co (TSE:5191) Beneish M-Score : -2.87 (As of Mar. 15, 2025)


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What is Sumitomo Riko 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:5191' s Beneish M-Score Range Over the Past 10 Years
Min: -3.29   Med: -2.88   Max: -2.37
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Sumitomo Riko Co was -2.37. The lowest was -3.29. And the median was -2.88.


Sumitomo Riko Co Beneish M-Score Historical Data

The historical data trend for Sumitomo Riko 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.

Sumitomo Riko Co Beneish M-Score Chart

Sumitomo Riko 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 -3.11 -2.75 -2.59 -2.73 -2.97

Sumitomo Riko Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -2.96 -2.97 -2.92 -2.96 -2.87

Competitive Comparison of Sumitomo Riko Co's Beneish M-Score

For the Auto Parts subindustry, Sumitomo Riko 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.


Sumitomo Riko Co's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Riko Co's Beneish M-Score distribution charts can be found below:

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



Sumitomo Riko 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 Sumitomo Riko 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 * 0.9435+0.528 * 0.9728+0.404 * 0.9337+0.892 * 1.0441+0.115 * 1.0182
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9641+4.679 * -0.080758-0.327 * 0.8855
=-2.87

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was 円95,610 Mil.
Revenue was 162102 + 151554 + 157615 + 158328 = 円629,599 Mil.
Gross Profit was 30299 + 24082 + 24556 + 28256 = 円107,193 Mil.
Total Current Assets was 円249,136 Mil.
Total Assets was 円453,020 Mil.
Property, Plant and Equipment(Net PPE) was 円157,118 Mil.
Depreciation, Depletion and Amortization(DDA) was 円31,034 Mil.
Selling, General, & Admin. Expense(SGA) was 円63,220 Mil.
Total Current Liabilities was 円132,985 Mil.
Long-Term Debt & Capital Lease Obligation was 円55,743 Mil.
Net Income was 12158 + 4106 + 5924 + 5252 = 円27,440 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 19295 + 11827 + 19031 + 13872 = 円64,025 Mil.
Total Receivables was 円97,063 Mil.
Revenue was 159243 + 152241 + 145637 + 145904 = 円603,025 Mil.
Gross Profit was 26704 + 23394 + 21371 + 28403 = 円99,872 Mil.
Total Current Assets was 円228,752 Mil.
Total Assets was 円428,889 Mil.
Property, Plant and Equipment(Net PPE) was 円152,717 Mil.
Depreciation, Depletion and Amortization(DDA) was 円30,825 Mil.
Selling, General, & Admin. Expense(SGA) was 円62,809 Mil.
Total Current Liabilities was 円130,189 Mil.
Long-Term Debt & Capital Lease Obligation was 円71,586 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)
=(95610 / 629599) / (97063 / 603025)
=0.151859 / 0.16096
=0.9435

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)
=(99872 / 603025) / (107193 / 629599)
=0.165618 / 0.170256
=0.9728

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 - (249136 + 157118) / 453020) / (1 - (228752 + 152717) / 428889)
=0.103232 / 0.110565
=0.9337

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
=629599 / 603025
=1.0441

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))
=(30825 / (30825 + 152717)) / (31034 / (31034 + 157118))
=0.167945 / 0.164941
=1.0182

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)
=(63220 / 629599) / (62809 / 603025)
=0.100413 / 0.104157
=0.9641

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)
=((55743 + 132985) / 453020) / ((71586 + 130189) / 428889)
=0.4166 / 0.47046
=0.8855

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
=(27440 - 0 - 64025) / 453020
=-0.080758

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.

Sumitomo Riko Co has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.


Sumitomo Riko Co Beneish M-Score Related Terms

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Sumitomo Riko Co Business Description

Traded in Other Exchanges
N/A
Address
1 Higashi 3-chome, Aichi, Komaki, JPN, 485-8550
Sumitomo Riko Co Ltd manufactures and sells automotive parts that include antivibration rubbers and hoses, IT-related products, and various industrial materials. The company's high-polymer compounding technology serves as a major component to many of the products it engineers. Sumitomo derives a significant portion of sales from its automotive segment, with revenue dispersed globally. Alongside antivibration rubbers and hoses, automotive product offerings include sound controlling and insulation products, interior equipment (headrests and instrument panels), and connector seals. The company's other segments bring rubber technologies to printers and copy machines, infrastructure, housing, and healthcare.

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