Asahi Group Holdings (Asahi Group Holdings) Beneish M-Score : -2.50 (As of Apr. 28, 2024)

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What is Asahi Group Holdings 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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASBRF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67 Med: -2.54 Max: -2.17
Current: -2.5

During the past 13 years, the highest Beneish M-Score of Asahi Group Holdings was -2.17. The lowest was -2.67. And the median was -2.54.

Asahi Group Holdings Beneish M-Score Historical Data

The historical data trend for Asahi Group Holdings'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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Asahi Group Holdings Beneish M-Score Chart

Asahi Group Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-2.67

-2.63

-2.49

-2.50

Asahi Group Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.49	-2.43	-2.49	-2.51	-2.50

Competitive Comparison of Asahi Group Holdings's Beneish M-Score

For the Beverages - Brewers subindustry, Asahi Group Holdings'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.

Asahi Group Holdings's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Asahi Group Holdings's Beneish M-Score distribution charts can be found below:

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

Asahi Group Holdings 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 Asahi Group Holdings 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 * 1.0158

0.528 * 1.0177

0.404 * 0.9959

0.892 * 1.0333

0.115 * 1.0116

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.98

4.679 * -0.033594

0.327 * 0.9222

-2.56

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $3,234 Mil.
Revenue was 5181.825 + 5208.184 + 4928.363 + 4162.181 = $19,481 Mil.
Gross Profit was 1814.497 + 1960.296 + 1807.608 + 1438.963 = $7,021 Mil.
Total Current Assets was $5,882 Mil.
Total Assets was $36,712 Mil.
Property, Plant and Equipment(Net PPE) was $6,168 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,044 Mil.
Selling, General, & Admin. Expense(SGA) was $5,181 Mil.
Total Current Liabilities was $9,702 Mil.
Long-Term Debt & Capital Lease Obligation was $7,091 Mil.
Net Income was 215.576 + 454.767 + 324.198 + 149.397 = $1,144 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 645.75 + 1079.692 + 1016.129 + -364.301 = $2,377 Mil.

Total Receivables was $3,081 Mil.
Revenue was 4900.604 + 4875.649 + 4885.538 + 4190.2 = $18,852 Mil.
Gross Profit was 1789.641 + 1805.606 + 1820.458 + 1499.417 = $6,915 Mil.
Total Current Assets was $5,467 Mil.
Total Assets was $35,803 Mil.
Property, Plant and Equipment(Net PPE) was $6,187 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,062 Mil.
Selling, General, & Admin. Expense(SGA) was $5,116 Mil.
Total Current Liabilities was $9,383 Mil.
Long-Term Debt & Capital Lease Obligation was $8,376 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)
	=	(3233.978 / 19480.553)	/	(3081.026 / 18851.991)
	=	0.166011	/	0.163432
	=	1.0158

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)
	=	(6915.122 / 18851.991)	/	(7021.364 / 19480.553)
	=	0.366811	/	0.360429
	=	1.0177

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 - (5882.374 + 6167.945) / 36712.446)	/	(1 - (5466.628 + 6187.023) / 35802.922)
	=	0.671765	/	0.674506
	=	0.9959

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
	=	19480.553	/	18851.991
	=	1.0333

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))
	=	(1061.848 / (1061.848 + 6187.023))	/	(1044.406 / (1044.406 + 6167.945))
	=	0.146485	/	0.144808
	=	1.0116

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)
	=	(5181.134 / 19480.553)	/	(5116.416 / 18851.991)
	=	0.265964	/	0.271399
	=	0.98

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)
	=	((7090.842 + 9702.288) / 36712.446)	/	((8375.968 + 9383.3) / 35802.922)
	=	0.457423	/	0.496028
	=	0.9222

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
	=	(1143.938 - 0	-	2377.27)	/	36712.446
	=	-0.033594

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.

Asahi Group Holdings has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Asahi Group Holdings Beneish M-Score Related Terms

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Asahi Group Holdings (Asahi Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Asahi Group Holdings Ltd (OTCPK:ASBRF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

2502:Japan ABW:Germany

Address

1-23-1, Azumabashi, Sumida-ku, Tokyo, JPN, 130-8602

Website

http://www.asahigroup-holdings.com

Asahi is a leading brewer in Japan with an estimated 36.5% market share by volume in Japan's beer and beer-like market, led by its Asahi Super Dry beer brand. It also operates a wide range of acholic and soft beverage products as well as packaged foods, mainly in Japan. It has made inroads into Europe through acquisitions of SABMiller's brands including Peroni and Pilsner Urquell in Western and Central Europe in 2016 and 2017. The acquisition of Carlton United Breweries has granted Asahi the leading market share in Australia's beer market with Great Northern the leading brand. East Asia including China and Southeast Asia are the other overseas markets where Asahi is growing. Overseas business represents nearly half of the group sales and 60% of business profits.