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Kurita Water Industries (Kurita Water Industries) Beneish M-Score : -2.65 (As of Apr. 27, 2024)


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What is Kurita Water Industries 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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KTWIF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Med: -2.54   Max: -1.86
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Kurita Water Industries was -1.86. The lowest was -3.11. And the median was -2.54.


Kurita Water Industries Beneish M-Score Historical Data

The historical data trend for Kurita Water Industries'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.

Kurita Water Industries Beneish M-Score Chart

Kurita Water Industries Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.72 -2.87 -2.71 -2.59 -2.70

Kurita Water Industries 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 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 -2.54 -2.70 -2.56 -2.57 -2.65

Competitive Comparison of Kurita Water Industries's Beneish M-Score

For the Pollution & Treatment Controls subindustry, Kurita Water Industries'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.


Kurita Water Industries's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kurita Water Industries's Beneish M-Score distribution charts can be found below:

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



Kurita Water Industries 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 Kurita Water Industries 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 * 0.9759+0.528 * 1.0449+0.404 * 0.955+0.892 * 1.08+0.115 * 0.7981
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9472+4.679 * -0.060941-0.327 * 1.0085
=-2.73

* 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 $913 Mil.
Revenue was 682.81 + 661.625 + 640.529 + 695.04 = $2,680 Mil.
Gross Profit was 239.628 + 223.173 + 207.211 + 230.219 = $900 Mil.
Total Current Assets was $1,480 Mil.
Total Assets was $3,679 Mil.
Property, Plant and Equipment(Net PPE) was $1,431 Mil.
Depreciation, Depletion and Amortization(DDA) was $283 Mil.
Selling, General, & Admin. Expense(SGA) was $613 Mil.
Total Current Liabilities was $742 Mil.
Long-Term Debt & Capital Lease Obligation was $535 Mil.
Net Income was 64.661 + 46.664 + 40.288 + -0.112 = $152 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 81.858 + 113.633 + 31.601 + 148.619 = $376 Mil.
Total Receivables was $866 Mil.
Revenue was 674.685 + 600.345 + 557.323 + 649.23 = $2,482 Mil.
Gross Profit was 237.024 + 214.545 + 195.608 + 223.803 = $871 Mil.
Total Current Assets was $1,418 Mil.
Total Assets was $3,676 Mil.
Property, Plant and Equipment(Net PPE) was $1,454 Mil.
Depreciation, Depletion and Amortization(DDA) was $221 Mil.
Selling, General, & Admin. Expense(SGA) was $599 Mil.
Total Current Liabilities was $777 Mil.
Long-Term Debt & Capital Lease Obligation was $488 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)
=(912.86 / 2680.004) / (866.124 / 2481.583)
=0.340619 / 0.349021
=0.9759

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)
=(870.98 / 2481.583) / (900.231 / 2680.004)
=0.350978 / 0.335907
=1.0449

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 - (1480.01 + 1430.545) / 3679.118) / (1 - (1417.739 + 1453.925) / 3675.69)
=0.208899 / 0.218742
=0.955

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
=2680.004 / 2481.583
=1.08

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))
=(220.562 / (220.562 + 1453.925)) / (282.749 / (282.749 + 1430.545))
=0.131719 / 0.165032
=0.7981

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)
=(613.227 / 2680.004) / (599.47 / 2481.583)
=0.228816 / 0.241568
=0.9472

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)
=((535.062 + 742.359) / 3679.118) / ((488.145 + 777.357) / 3675.69)
=0.347208 / 0.34429
=1.0085

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
=(151.501 - 0 - 375.711) / 3679.118
=-0.060941

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.

Kurita Water Industries has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.


Kurita Water Industries Beneish M-Score Related Terms

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Kurita Water Industries (Kurita Water Industries) Business Description

Traded in Other Exchanges
Address
Nakano Central Park East , 4-10-1, Nakano-ku, Tokyo, JPN, 164-0001
Kurita Water Industries Ltd. is a provider of water treatment solutions in Japan. It operates through two segments, The Water Treatment Chemical segment, and The Water Treatment Equipment segment. The Water Treatment Chemical segment sells water treatment-related chemicals, for air conditioning, petroleum refining, pulp and paper processing-related applications. The Water Treatment Equipment segment manufactures and sells water production systems, drinking water treatment equipment, water and wastewater treatment equipment for various industries. Additionally, the segment is also responsible for supplying ultrapure water, the provision of maintenance service and the operation of water treatment facilities.

Kurita Water Industries (Kurita Water Industries) Headlines

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