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Anicom Holdings (TSE:8715) Beneish M-Score : -3.01 (As of May. 12, 2024)


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What is Anicom Holdings Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:8715' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14   Med: -2.91   Max: -2.64
Current: -3.01

During the past 13 years, the highest Beneish M-Score of Anicom Holdings was -2.64. The lowest was -3.14. And the median was -2.91.


Anicom 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 Anicom Holdings 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 * 0.9853+0.528 * 1+0.404 * 1.0085+0.892 * 1.0722+0.115 * 0.9309
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9544+4.679 * -0.129245-0.327 * 0.9491
=-3.01

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was 円3,818 Mil.
Revenue was 15181 + 14885 + 14865 + 14366 = 円59,297 Mil.
Gross Profit was 15181 + 14885 + 14865 + 14366 = 円59,297 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円63,043 Mil.
Property, Plant and Equipment(Net PPE) was 円2,256 Mil.
Depreciation, Depletion and Amortization(DDA) was 円955 Mil.
Selling, General, & Admin. Expense(SGA) was 円15,635 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円5,000 Mil.
Net Income was 285 + 945 + 811 + 611 = 円2,652 Mil.
Non Operating Income was 1395 + 1284 + 1417 + 1121 = 円5,217 Mil.
Cash Flow from Operations was 1209 + 1346 + 1178 + 1850 = 円5,583 Mil.
Total Receivables was 円3,614 Mil.
Revenue was 14076 + 14015 + 13951 + 13263 = 円55,305 Mil.
Gross Profit was 14076 + 14015 + 13951 + 13263 = 円55,305 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円59,834 Mil.
Property, Plant and Equipment(Net PPE) was 円2,630 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,007 Mil.
Selling, General, & Admin. Expense(SGA) was 円15,279 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円5,000 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)
=(3818 / 59297) / (3614 / 55305)
=0.064388 / 0.065347
=0.9853

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)
=(55305 / 55305) / (59297 / 59297)
=1 / 1
=1

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 + 2256) / 63043) / (1 - (0 + 2630) / 59834)
=0.964215 / 0.956045
=1.0085

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
=59297 / 55305
=1.0722

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))
=(1007 / (1007 + 2630)) / (955 / (955 + 2256))
=0.276877 / 0.297415
=0.9309

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)
=(15635 / 59297) / (15279 / 55305)
=0.263673 / 0.276268
=0.9544

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)
=((5000 + 0) / 63043) / ((5000 + 0) / 59834)
=0.079311 / 0.083565
=0.9491

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
=(2652 - 5217 - 5583) / 63043
=-0.129245

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.

Anicom Holdings has a M-score of -3.01 suggests that the company is unlikely to be a manipulator.


Anicom Holdings Beneish M-Score Related Terms

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Anicom Holdings (TSE:8715) Business Description

Traded in Other Exchanges
N/A
Address
2nd Floor Arimino Buillding, 1-5-22 Shimoochiai, Shinjuku-ku, Tokyo, JPN, 161-0033
Anicom Holdings Inc is a Japanese company engaged in the operation and management of its subsidiaries and its ancillary businesses. The business segments of the company are, Property and casualty insurance, Veterinary hospital support, and Others segments. Through the Property and casualty insurance segment, the company offers insurance underwriting and asset management services for pet insurance. The Veterinary hospital support segment related to the development, selling, and supporting medical record management. The Others segment includes insurance, advance medical care for small animals, and research projects.