ITOCHU Beneish M-Score Historical Data
The historical data trend for ITOCHU'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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ITOCHU Annual Data
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Trend |
Mar14 |
Mar15 |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Mar23 |
| Beneish M-Score |
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-1.49 |
-2.95 |
-2.72 |
-2.20 |
-2.44 |
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ITOCHU Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.31 |
-2.44 |
-2.46 |
-2.46 |
-2.50 |
Competitive Comparison
For the Conglomerates subindustry, ITOCHU'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.
ITOCHU Beneish M-Score Distribution
For the Conglomerates industry and Industrials sector, ITOCHU's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where ITOCHU's Beneish M-Score falls into.
ITOCHU 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 ITOCHU 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 * 1.0382 | + | 0.528 * 0.9912 | + | 0.404 * 1.0304 | + | 0.892 * 1.0079 | + | 0.115 * 0.9909 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0359 | + | 4.679 * -0.013798 | - | 0.327 * 0.9983 |
| = | -2.50 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was 円3,250,481 Mil.
Revenue was 3676963 + 3425607 + 3348491 + 3401414 = 円13,852,475 Mil.
Gross Profit was 580749 + 549761 + 517867 + 495532 = 円2,143,909 Mil.
Total Current Assets was 円5,803,447 Mil.
Total Assets was 円14,359,582 Mil.
Property, Plant and Equipment(Net PPE) was 円2,046,063 Mil.
Depreciation, Depletion and Amortization(DDA) was 円417,354 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,469,126 Mil.
Total Current Liabilities was 円4,755,159 Mil.
Long-Term Debt & Capital Lease Obligation was 円3,242,966 Mil.
Net Income was 198794 + 199662 + 213237 + 118290 = 円729,983 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 157071 + 255172 + 214041 + 301839 = 円928,123 Mil.
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Total Receivables was 円3,106,250 Mil.
Revenue was 3552055 + 3614143 + 3378021 + 3199694 = 円13,743,913 Mil.
Gross Profit was 549958 + 559370 + 525043 + 473929 = 円2,108,300 Mil.
Total Current Assets was 円5,611,133 Mil.
Total Assets was 円13,599,163 Mil.
Property, Plant and Equipment(Net PPE) was 円2,004,688 Mil.
Depreciation, Depletion and Amortization(DDA) was 円404,458 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,407,155 Mil.
Total Current Liabilities was 円4,423,279 Mil.
Long-Term Debt & Capital Lease Obligation was 円3,163,933 Mil.
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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) |
| = | (3250481 / 13852475) | / | (3106250 / 13743913) |
| = | 0.23465 | / | 0.226009 |
| | = | 1.0382 |
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) |
| = | (2108300 / 13743913) | / | (2143909 / 13852475) |
| = | 0.153399 | / | 0.154767 |
| | = | 0.9912 |
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 - (5803447 + 2046063) / 14359582) | / | (1 - (5611133 + 2004688) / 13599163) |
| = | 0.453361 | / | 0.439979 |
| | = | 1.0304 |
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 |
| = | 13852475 | / | 13743913 |
| | = | 1.0079 |
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)) |
| = | (404458 / (404458 + 2004688)) | / | (417354 / (417354 + 2046063)) |
| = | 0.167884 | / | 0.169421 |
| | = | 0.9909 |
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) |
| = | (1469126 / 13852475) | / | (1407155 / 13743913) |
| = | 0.106055 | / | 0.102384 |
| | = | 1.0359 |
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) |
| = | ((3242966 + 4755159) / 14359582) | / | ((3163933 + 4423279) / 13599163) |
| = | 0.556989 | / | 0.557918 |
| | = | 0.9983 |
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 |
| = | (729983 - 0 | - | 928123) | / | 14359582 |
| | = | -0.013798 |
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.
ITOCHU has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
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