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LY (YAHOY) Beneish M-Score : -2.56 (As of Dec. 14, 2024)


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What is LY 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

YAHOY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82   Med: -2.23   Max: -0.45
Current: -2.56

During the past 13 years, the highest Beneish M-Score of LY was -0.45. The lowest was -2.82. And the median was -2.23.


LY Beneish M-Score Historical Data

The historical data trend for LY'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.

LY Beneish M-Score Chart

LY 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 -2.62 -2.09 -2.55 -2.17 -2.44

LY 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 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 -2.09 -2.32 -2.44 -2.45 -2.56

Competitive Comparison of LY's Beneish M-Score

For the Internet Retail subindustry, LY'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.


LY's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

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



LY 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 LY 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 * 1.1893+0.528 * 0.982+0.404 * 0.9978+0.892 * 0.9961+0.115 * 1.0853
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9818+4.679 * -0.041332-0.327 * 1.0222
=-2.51

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $16,430 Mil.
Revenue was 3233.264 + 2933.517 + 3122.596 + 3299.32 = $12,589 Mil.
Gross Profit was 2337.458 + 2097.168 + 2213.417 + 2390.203 = $9,038 Mil.
Total Current Assets was $25,064 Mil.
Total Assets was $62,151 Mil.
Property, Plant and Equipment(Net PPE) was $3,173 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,053 Mil.
Selling, General, & Admin. Expense(SGA) was $7,512 Mil.
Total Current Liabilities was $10,693 Mil.
Long-Term Debt & Capital Lease Obligation was $12,922 Mil.
Net Income was 249.92 + 326.409 + -61.735 + 199.415 = $714 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1256.005 + 553.294 + 154 + 1319.51 = $3,283 Mil.
Total Receivables was $13,869 Mil.
Revenue was 2984.72 + 3045.62 + 3245.302 + 3362.767 = $12,638 Mil.
Gross Profit was 2134.736 + 2142.424 + 2249.868 + 2383.304 = $8,910 Mil.
Total Current Assets was $23,472 Mil.
Total Assets was $58,841 Mil.
Property, Plant and Equipment(Net PPE) was $3,191 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,183 Mil.
Selling, General, & Admin. Expense(SGA) was $7,681 Mil.
Total Current Liabilities was $9,288 Mil.
Long-Term Debt & Capital Lease Obligation was $12,584 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)
=(16429.523 / 12588.697) / (13869.126 / 12638.409)
=1.305101 / 1.097379
=1.1893

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)
=(8910.332 / 12638.409) / (9038.246 / 12588.697)
=0.70502 / 0.717965
=0.982

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 - (25063.797 + 3172.503) / 62150.734) / (1 - (23471.582 + 3190.591) / 58841.192)
=0.54568 / 0.546879
=0.9978

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
=12588.697 / 12638.409
=0.9961

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))
=(1182.936 / (1182.936 + 3190.591)) / (1053.105 / (1053.105 + 3172.503))
=0.270476 / 0.24922
=1.0853

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)
=(7512.281 / 12588.697) / (7681.386 / 12638.409)
=0.596748 / 0.607781
=0.9818

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)
=((12922.017 + 10692.978) / 62150.734) / ((12583.74 + 9287.842) / 58841.192)
=0.379963 / 0.371705
=1.0222

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
=(714.009 - 0 - 3282.809) / 62150.734
=-0.041332

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.

LY has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.


LY Business Description

Traded in Other Exchanges
Address
Tokyo Kioicho Kioi Tower, 1-3 Kioicho Chiyoda Ward, Tokyo Garden Terrace, Tokyo, JPN, 102 - 8282
LY Corp's portal site, Yahoo Japan, was one of the first internet services in Japan, and it has maintained its market-leading position in terms of monthly active user numbers and page views. In addition, the company offers a variety of internet services, including e-commerce, online travel, and online video. In October 2013, the firm began a new e-commerce strategy of waiving store tenant fees and sales royalty fees on its Yahoo Shopping service to compete with Rakuten and Amazon Japan. The company acquired Zozo in 2019 and integrated Line in 2021.

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