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Brass (TSE:2424) Beneish M-Score : -2.78 (As of May. 26, 2024)


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What is Brass 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:2424' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Med: -2.78   Max: -1.45
Current: -2.78

During the past 9 years, the highest Beneish M-Score of Brass was -1.45. The lowest was -4.00. And the median was -2.78.


Brass Beneish M-Score Historical Data

The historical data trend for Brass'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.

Brass Beneish M-Score Chart

Brass Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -2.82 -4.00 -1.45 -1.72 -2.78

Brass Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 - - -2.78 - -

Competitive Comparison of Brass's Beneish M-Score

For the Personal Services subindustry, Brass'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.


Brass's Beneish M-Score Distribution in the Personal Services Industry

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

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



Brass 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 Brass 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 * 0.6204+0.528 * 0.9973+0.404 * 1.3669+0.892 * 1.1616+0.115 * 0.8109
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.054396-0.327 * 0.8878
=-2.78

* 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 (Jul23) TTM:Last Year (Jul22) TTM:
Total Receivables was 円56 Mil.
Revenue was 円13,261 Mil.
Gross Profit was 円8,928 Mil.
Total Current Assets was 円2,779 Mil.
Total Assets was 円11,140 Mil.
Property, Plant and Equipment(Net PPE) was 円6,669 Mil.
Depreciation, Depletion and Amortization(DDA) was 円759 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円4,456 Mil.
Long-Term Debt & Capital Lease Obligation was 円2,067 Mil.
Net Income was 円722 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円1,328 Mil.
Total Receivables was 円78 Mil.
Revenue was 円11,416 Mil.
Gross Profit was 円7,665 Mil.
Total Current Assets was 円3,029 Mil.
Total Assets was 円11,765 Mil.
Property, Plant and Equipment(Net PPE) was 円7,429 Mil.
Depreciation, Depletion and Amortization(DDA) was 円671 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円4,014 Mil.
Long-Term Debt & Capital Lease Obligation was 円3,745 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)
=(56.499 / 13260.522) / (78.403 / 11415.969)
=0.004261 / 0.006868
=0.6204

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)
=(7665.112 / 11415.969) / (8927.91 / 13260.522)
=0.671438 / 0.67327
=0.9973

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 - (2779.217 + 6669.299) / 11140.429) / (1 - (3028.699 + 7429.091) / 11764.901)
=0.151871 / 0.111103
=1.3669

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
=13260.522 / 11415.969
=1.1616

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))
=(671.445 / (671.445 + 7429.091)) / (759.371 / (759.371 + 6669.299))
=0.082889 / 0.102222
=0.8109

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)
=(0 / 13260.522) / (0 / 11415.969)
=0 / 0
=1

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)
=((2067.261 + 4455.585) / 11140.429) / ((3744.987 + 4014.425) / 11764.901)
=0.585511 / 0.659539
=0.8878

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
=(722.125 - 0 - 1328.116) / 11140.429
=-0.054396

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.

Brass has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.


Brass (TSE:2424) Business Description

Traded in Other Exchanges
N/A
Address
2-34-1 Meieki, Yubinbango451, Ecole Plaza Meieki Building, 4th floor, Nishi-ku, Aichi Prefecture, Nagoya, JPN, 451-0045
Brass Corp is engaged in house wedding business. It is focused on planning and management of wedding reception accompanying house wedding business, sales and rental of wedding costume. It also has a restaurant business.

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