Kawai Musical Instruments Manufacturing Co (TSE:7952) Beneish M-Score : -2.31 (As of Apr. 06, 2025)

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What is Kawai Musical Instruments Manufacturing 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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:7952' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67 Med: -2.44 Max: -2.13
Current: -2.31

During the past 13 years, the highest Beneish M-Score of Kawai Musical Instruments Manufacturing Co was -2.13. The lowest was -2.67. And the median was -2.44.

Kawai Musical Instruments Manufacturing Co Beneish M-Score Historical Data

The historical data trend for Kawai Musical Instruments Manufacturing 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.

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Kawai Musical Instruments Manufacturing Co Beneish M-Score Chart

Kawai Musical Instruments Manufacturing Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.58

-2.62

-2.38

-2.13

-2.31

Kawai Musical Instruments Manufacturing Co Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-2.31	-

Competitive Comparison of Kawai Musical Instruments Manufacturing Co's Beneish M-Score

For the Leisure subindustry, Kawai Musical Instruments Manufacturing 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.

Kawai Musical Instruments Manufacturing Co's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Kawai Musical Instruments Manufacturing Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kawai Musical Instruments Manufacturing Co's Beneish M-Score falls into.

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Kawai Musical Instruments Manufacturing 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 Kawai Musical Instruments Manufacturing Co 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 * 1.0548

0.528 * 1.0065

0.404 * 1.1165

0.892 * 0.9137

0.115 * 1.0485

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8825

4.679 * 0.018222

0.327 * 0.8861

-2.31

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was 円9,306 Mil.
Revenue was 円80,192 Mil.
Gross Profit was 円20,711 Mil.
Total Current Assets was 円49,715 Mil.
Total Assets was 円73,538 Mil.
Property, Plant and Equipment(Net PPE) was 円13,857 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,602 Mil.
Selling, General, & Admin. Expense(SGA) was 円2,934 Mil.
Total Current Liabilities was 円18,303 Mil.
Long-Term Debt & Capital Lease Obligation was 円2,921 Mil.
Net Income was 円2,782 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円1,442 Mil.

Total Receivables was 円9,656 Mil.
Revenue was 円87,771 Mil.
Gross Profit was 円22,815 Mil.
Total Current Assets was 円48,687 Mil.
Total Assets was 円70,818 Mil.
Property, Plant and Equipment(Net PPE) was 円13,535 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,650 Mil.
Selling, General, & Admin. Expense(SGA) was 円3,639 Mil.
Total Current Liabilities was 円19,357 Mil.
Long-Term Debt & Capital Lease Obligation was 円3,709 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)
	=	(9306 / 80192)	/	(9656 / 87771)
	=	0.116046	/	0.110014
	=	1.0548

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)
	=	(22815 / 87771)	/	(20711 / 80192)
	=	0.259938	/	0.258268
	=	1.0065

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 - (49715 + 13857) / 73538)	/	(1 - (48687 + 13535) / 70818)
	=	0.135522	/	0.121382
	=	1.1165

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
	=	80192	/	87771
	=	0.9137

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))
	=	(1650 / (1650 + 13535))	/	(1602 / (1602 + 13857))
	=	0.10866	/	0.103629
	=	1.0485

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)
	=	(2934 / 80192)	/	(3639 / 87771)
	=	0.036587	/	0.04146
	=	0.8825

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)
	=	((2921 + 18303) / 73538)	/	((3709 + 19357) / 70818)
	=	0.288613	/	0.325708
	=	0.8861

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
	=	(2782 - 0	-	1442)	/	73538
	=	0.018222

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.

Kawai Musical Instruments Manufacturing Co has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.

Kawai Musical Instruments Manufacturing Co Beneish M-Score Related Terms

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Kawai Musical Instruments Manufacturing Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Kawai Musical Instruments Manufacturing Co Ltd (TSE:7952) » Definitions » Beneish M-Score

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Address

200 Terajima-cho Naka-ku, Shizuoka, Hamamatsu, JPN, 430-8665

Website

http://www.kawai.co.jp

Kawai Musical Instruments Manufacturing Co Ltd is a Japan-based musical instrument manufacturer. The company is mainly engaged in manufacturing and sales of musical instruments, precision metals, wood products, and electronic devices. Products offered by the company include grand pianos, upright pianos, digital pianos, hybrid pianos, and anytime pianos. It sells its products under the brand name Philosophy, Legacy, Artists, Competitions, and Institutions. Kawai has world-wide sales networks, it distributes its products in Europe, America, Asia and Oceania, Africa and the Middle East. The company is also engaged in the development and sales of software and operations of music schools, and gymnastics schools.

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