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Tokyo Steel Manufacturing Co (TSE:5423) Beneish M-Score : 1.01 (As of May. 21, 2024)


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What is Tokyo Steel Manufacturing Co 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.

Warning Sign:

Beneish M-Score 1.01 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSE:5423' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41   Med: -2.39   Max: 1.01
Current: 1.01

During the past 13 years, the highest Beneish M-Score of Tokyo Steel Manufacturing Co was 1.01. The lowest was -3.41. And the median was -2.39.


Tokyo Steel Manufacturing Co Beneish M-Score Historical Data

The historical data trend for Tokyo Steel Manufacturing Co'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.

Tokyo Steel Manufacturing Co Beneish M-Score Chart

Tokyo Steel Manufacturing Co 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 -3.06 -1.74 -1.85 -2.44 1.01

Tokyo Steel Manufacturing Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -2.44 - - - 1.01

Competitive Comparison of Tokyo Steel Manufacturing Co's Beneish M-Score

For the Steel subindustry, Tokyo Steel Manufacturing Co'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.


Tokyo Steel Manufacturing Co's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Tokyo Steel Manufacturing Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tokyo Steel Manufacturing Co's Beneish M-Score falls into.



Tokyo Steel Manufacturing Co 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 Tokyo Steel Manufacturing Co 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+0.528 * 0.1741+0.404 * 13.0988+0.892 * 1.0166+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.081834-0.327 * 0
=1.01

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was 円0 Mil.
Revenue was 円367,242 Mil.
Gross Profit was 円367,242 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円310,604 Mil.
Property, Plant and Equipment(Net PPE) was 円0 Mil.
Depreciation, Depletion and Amortization(DDA) was 円0 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円27,958 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円53,376 Mil.
Total Receivables was 円35,421 Mil.
Revenue was 円361,245 Mil.
Gross Profit was 円62,900 Mil.
Total Current Assets was 円170,877 Mil.
Total Assets was 円270,975 Mil.
Property, Plant and Equipment(Net PPE) was 円79,411 Mil.
Depreciation, Depletion and Amortization(DDA) was 円5,032 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円78,050 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 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)
=(0 / 367242) / (35421 / 361245)
=0 / 0.098053
=0

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)
=(62900 / 361245) / (367242 / 367242)
=0.17412 / 1
=0.1741

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 - (0 + 0) / 310604) / (1 - (170877 + 79411) / 270975)
=1 / 0.076343
=13.0988

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
=367242 / 361245
=1.0166

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))
=(5032 / (5032 + 79411)) / (0 / (0 + 0))
=0.05959 /
=1

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 / 367242) / (0 / 361245)
=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)
=((0 + 0) / 310604) / ((0 + 78050) / 270975)
=0 / 0.288034
=0

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
=(27958 - 0 - 53376) / 310604
=-0.081834

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.

Tokyo Steel Manufacturing Co has a M-score of 1.01 signals that the company is likely to be a manipulator.


Tokyo Steel Manufacturing Co Beneish M-Score Related Terms

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Tokyo Steel Manufacturing Co (TSE:5423) Business Description

Traded in Other Exchanges
N/A
Address
Kasumigaseki-Tokyu Bldg 15th Floor,, 3-7-1, Kasumigaseki, Chiyoda-ku, Tokyo, JPN, 1000013
Tokyo Steel Manufacturing Co Ltd is a Japan-based company primarily engaged in production of long steel products and flat steel products. The company's long product portfolio comprises H beams, sheet piles, I-beams, checkered H-beams, channels, and reinforcing bars. The company's flat product portfolio consists of heavy plates, hot-rolled coils, pickled and oiled coils, hot-dip galvanized coils, checkered coils, and steel sheets. These products are used in broad range of applications, including construction, civil engineering, industrial equipment, plant equipment, bridge, and shipbuilding. The company has four plants located in Tahara, Okayama, Kyushu, and Utsunomiya. Tokyo Steel Manufacturing generates most of its revenue from the Japanese domestic market.

Tokyo Steel Manufacturing Co (TSE:5423) Headlines

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