Kurita Water Industries (TSE:6370) Beneish M-Score : -2.86 (As of Dec. 13, 2024)

View and export this data going back to 1961. Start your Free Trial

What is Kurita Water Industries 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:6370' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11 Med: -2.55 Max: -1.86
Current: -2.86

During the past 13 years, the highest Beneish M-Score of Kurita Water Industries was -1.86. The lowest was -3.11. And the median was -2.55.

Kurita Water Industries Beneish M-Score Historical Data

The historical data trend for Kurita Water Industries'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.

Kurita Water Industries Beneish M-Score Chart

Kurita Water Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

Get a 7-Day Free Trial

-2.87

-2.71

-2.59

-2.70

-2.50

Kurita Water Industries 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															-2.57	-2.65	-2.50	-2.62	-2.86

Competitive Comparison of Kurita Water Industries's Beneish M-Score

For the Pollution & Treatment Controls subindustry, Kurita Water Industries'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.

Kurita Water Industries's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kurita Water Industries's Beneish M-Score distribution charts can be found below:

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

Kurita Water Industries 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 Kurita Water Industries for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9252

0.528 * 0.9421

0.404 * 0.9432

0.892 * 1.0529

0.115 * 1.218

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0564

4.679 * -0.070632

0.327 * 0.9763

-2.86

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was 円130,353 Mil.
Revenue was 101550 + 93980 + 98150 + 98312 = 円391,992 Mil.
Gross Profit was 37565 + 32630 + 35052 + 34502 = 円139,749 Mil.
Total Current Assets was 円214,826 Mil.
Total Assets was 円547,809 Mil.
Property, Plant and Equipment(Net PPE) was 円222,221 Mil.
Depreciation, Depletion and Amortization(DDA) was 円33,737 Mil.
Selling, General, & Admin. Expense(SGA) was 円94,537 Mil.
Total Current Liabilities was 円109,983 Mil.
Long-Term Debt & Capital Lease Obligation was 円74,622 Mil.
Net Income was 9231 + 5701 + 7283 + 9310 = 円31,525 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 23905 + 16706 + 17821 + 11786 = 円70,218 Mil.

Total Receivables was 円133,812 Mil.
Revenue was 97818 + 90544 + 92902 + 91025 = 円372,289 Mil.
Gross Profit was 32995 + 29291 + 30772 + 31978 = 円125,036 Mil.
Total Current Assets was 円210,693 Mil.
Total Assets was 円528,760 Mil.
Property, Plant and Equipment(Net PPE) was 円204,724 Mil.
Depreciation, Depletion and Amortization(DDA) was 円39,154 Mil.
Selling, General, & Admin. Expense(SGA) was 円84,995 Mil.
Total Current Liabilities was 円116,371 Mil.
Long-Term Debt & Capital Lease Obligation was 円66,141 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)
	=	(130353 / 391992)	/	(133812 / 372289)
	=	0.33254	/	0.35943
	=	0.9252

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)
	=	(125036 / 372289)	/	(139749 / 391992)
	=	0.335857	/	0.35651
	=	0.9421

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 - (214826 + 222221) / 547809)	/	(1 - (210693 + 204724) / 528760)
	=	0.202191	/	0.214356
	=	0.9432

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
	=	391992	/	372289
	=	1.0529

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))
	=	(39154 / (39154 + 204724))	/	(33737 / (33737 + 222221))
	=	0.160547	/	0.131807
	=	1.218

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)
	=	(94537 / 391992)	/	(84995 / 372289)
	=	0.241171	/	0.228304
	=	1.0564

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)
	=	((74622 + 109983) / 547809)	/	((66141 + 116371) / 528760)
	=	0.336988	/	0.34517
	=	0.9763

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
	=	(31525 - 0	-	70218)	/	547809
	=	-0.070632

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.

Kurita Water Industries has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.

Kurita Water Industries Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Kurita Water Industries's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Kurita Water Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kurita Water Industries Ltd (TSE:6370) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

KTWIY:USA KTWIF:USA KWI:Germany

Address

Nakano Central Park East , 4-10-1, Nakano-ku, Tokyo, JPN, 164-0001

Website

http://www.kurita.co.jp

Kurita Water Industries Ltd. is a provider of water treatment solutions in Japan. It operates through two segments, The Water Treatment Chemical segment, and The Water Treatment Equipment segment. The Water Treatment Chemical segment sells water treatment-related chemicals, for air conditioning, petroleum refining, pulp and paper processing-related applications. The Water Treatment Equipment segment manufactures and sells water production systems, drinking water treatment equipment, water and wastewater treatment equipment for various industries. Additionally, the segment is also responsible for supplying ultrapure water, the provision of maintenance service and the operation of water treatment facilities.

Kurita Water Industries Headlines

No Headlines