NEC Beneish M-Score Historical Data
The historical data trend for NEC'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.
NEC Beneish M-Score Chart
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NEC Annual Data
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Trend |
Mar15 |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Mar23 |
Mar24 |
| Beneish M-Score |
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-2.80 |
-2.49 |
-2.46 |
-2.40 |
-2.52 |
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NEC Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.40 |
-2.43 |
-2.45 |
-2.53 |
-2.52 |
Competitive Comparison of NEC's Beneish M-Score
For the Information Technology Services subindustry, NEC'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.
NEC's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, NEC's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where NEC's Beneish M-Score falls into.
NEC 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 NEC 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 * 1.0413 | + | 0.528 * 0.9999 | + | 0.404 * 1.0416 | + | 0.892 * 1.0496 | + | 0.115 * 0.9138 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9772 | + | 4.679 * -0.028789 | - | 0.327 * 0.9868 |
| = | -2.52 |
* 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1,241,212 Mil.
Revenue was 1083986 + 844475 + 842259 + 706542 = 円3,477,262 Mil.
Gross Profit was 335005 + 246980 + 236518 + 187355 = 円1,005,858 Mil.
Total Current Assets was 円2,141,784 Mil.
Total Assets was 円4,227,514 Mil.
Property, Plant and Equipment(Net PPE) was 円510,970 Mil.
Depreciation, Depletion and Amortization(DDA) was 円187,700 Mil.
Selling, General, & Admin. Expense(SGA) was 円814,013 Mil.
Total Current Liabilities was 円1,469,353 Mil.
Long-Term Debt & Capital Lease Obligation was 円411,400 Mil.
Net Income was 115481 + 21126 + 20302 + -7388 = 円149,521 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 243444 + 958 + -59559 + 86385 = 円271,228 Mil.
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Total Receivables was 円1,135,727 Mil.
Revenue was 1043759 + 813888 + 795702 + 659669 = 円3,313,018 Mil.
Gross Profit was 336607 + 238787 + 214676 + 168178 = 円958,248 Mil.
Total Current Assets was 円1,995,903 Mil.
Total Assets was 円3,984,050 Mil.
Property, Plant and Equipment(Net PPE) was 円563,384 Mil.
Depreciation, Depletion and Amortization(DDA) was 円183,298 Mil.
Selling, General, & Admin. Expense(SGA) was 円793,700 Mil.
Total Current Liabilities was 円1,365,509 Mil.
Long-Term Debt & Capital Lease Obligation was 円430,558 Mil.
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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) |
| = | (1241212 / 3477262) | / | (1135727 / 3313018) |
| = | 0.356951 | / | 0.342807 |
| | = | 1.0413 |
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) |
| = | (958248 / 3313018) | / | (1005858 / 3477262) |
| = | 0.289237 | / | 0.289267 |
| | = | 0.9999 |
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 - (2141784 + 510970) / 4227514) | / | (1 - (1995903 + 563384) / 3984050) |
| = | 0.372503 | / | 0.357617 |
| | = | 1.0416 |
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 |
| = | 3477262 | / | 3313018 |
| | = | 1.0496 |
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)) |
| = | (183298 / (183298 + 563384)) | / | (187700 / (187700 + 510970)) |
| = | 0.245483 | / | 0.268653 |
| | = | 0.9138 |
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) |
| = | (814013 / 3477262) | / | (793700 / 3313018) |
| = | 0.234096 | / | 0.23957 |
| | = | 0.9772 |
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) |
| = | ((411400 + 1469353) / 4227514) | / | ((430558 + 1365509) / 3984050) |
| = | 0.444884 | / | 0.450814 |
| | = | 0.9868 |
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 |
| = | (149521 - 0 | - | 271228) | / | 4227514 |
| | = | -0.028789 |
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.
NEC has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.
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