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Top Culture Co (TSE:7640) Beneish M-Score : -2.88 (As of Mar. 30, 2025)


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What is Top Culture 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:7640' s Beneish M-Score Range Over the Past 10 Years
Min: -3.69   Med: -2.95   Max: -1.77
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Top Culture Co was -1.77. The lowest was -3.69. And the median was -2.95.


Top Culture Co Beneish M-Score Historical Data

The historical data trend for Top Culture 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.

Top Culture Co Beneish M-Score Chart

Top Culture Co Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.69 -2.43 -1.80 -3.02 -2.88

Top Culture Co Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Oct24
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 - -3.02 - - -2.88

Competitive Comparison of Top Culture Co's Beneish M-Score

For the Specialty Retail subindustry, Top Culture 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.


Top Culture Co's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Top Culture Co's Beneish M-Score distribution charts can be found below:

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


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Top Culture 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 Top Culture 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 * 1.1925+0.528 * 0.9229+0.404 * 0.86+0.892 * 0.9715+0.115 * 1.0567
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.09591-0.327 * 1.0483
=-2.88

* 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 (Oct24) TTM:Last Year (Oct23) TTM:
Total Receivables was 円595 Mil.
Revenue was 円18,414 Mil.
Gross Profit was 円6,321 Mil.
Total Current Assets was 円8,749 Mil.
Total Assets was 円15,780 Mil.
Property, Plant and Equipment(Net PPE) was 円6,714 Mil.
Depreciation, Depletion and Amortization(DDA) was 円438 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円9,334 Mil.
Long-Term Debt & Capital Lease Obligation was 円4,317 Mil.
Net Income was 円-718 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円796 Mil.
Total Receivables was 円514 Mil.
Revenue was 円18,954 Mil.
Gross Profit was 円6,005 Mil.
Total Current Assets was 円9,717 Mil.
Total Assets was 円17,237 Mil.
Property, Plant and Equipment(Net PPE) was 円7,117 Mil.
Depreciation, Depletion and Amortization(DDA) was 円493 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円9,107 Mil.
Long-Term Debt & Capital Lease Obligation was 円5,117 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)
=(594.956 / 18414.028) / (513.54 / 18953.534)
=0.03231 / 0.027095
=1.1925

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)
=(6004.709 / 18953.534) / (6321.132 / 18414.028)
=0.316812 / 0.343278
=0.9229

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 - (8748.797 + 6714.432) / 15780.36) / (1 - (9716.632 + 7117.405) / 17236.835)
=0.020097 / 0.023368
=0.86

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
=18414.028 / 18953.534
=0.9715

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))
=(492.807 / (492.807 + 7117.405)) / (438.348 / (438.348 + 6714.432))
=0.064756 / 0.061284
=1.0567

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 / 18414.028) / (0 / 18953.534)
=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)
=((4316.657 + 9334.123) / 15780.36) / ((5116.544 + 9106.629) / 17236.835)
=0.865049 / 0.825162
=1.0483

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
=(-717.624 - 0 - 795.864) / 15780.36
=-0.09591

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.

Top Culture Co has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.


Top Culture Co Beneish M-Score Related Terms

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Top Culture Co Business Description

Traded in Other Exchanges
N/A
Address
4-9-1 Kobari, Nishi-ku, Niigata, JPN, 950-2022
Top Culture Co Ltd is a speciality retail company. The firm mainly sells books, stationery, music and video software. The company owns and operates approximately 74 retail stores in Japan. In addition, the company is engaged in the management of sports facilities and maintenance of store facilities.

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