Toyota Motor (Toyota Motor) Beneish M-Score

: -2.35 (As of Today)

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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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88 Med: -2.54 Max: -2.32
Current: -2.35

During the past 13 years, the highest Beneish M-Score of Toyota Motor was -2.32. The lowest was -2.88. And the median was -2.54.

Toyota Motor Beneish M-Score Historical Data

The historical data trend for Toyota Motor'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.

Toyota Motor Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

-2.52

-2.50

-2.54

-2.37

Toyota Motor 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																-2.35	-2.37	-2.38	-2.38	-2.35

Competitive Comparison

For the Auto Manufacturers subindustry, Toyota Motor'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.

Toyota Motor Beneish M-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Beneish M-Score distribution charts can be found below:

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

Toyota Motor 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 Toyota Motor for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0061

0.528 * 0.8675

0.404 * 0.9631

0.892 * 1.1477

0.115 * 1.0594

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.875

4.679 * -0.004369

0.327 * 1.0027

-2.42

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $99,861 Mil.
Revenue was 83629.515 + 77343.069 + 74610.73 + 72497.032 = $308,080 Mil.
Gross Profit was 18650.243 + 16029.869 + 14593.462 + 11707.277 = $60,981 Mil.
Total Current Assets was $221,242 Mil.
Total Assets was $585,021 Mil.
Property, Plant and Equipment(Net PPE) was $96,698 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,415 Mil.
Selling, General, & Admin. Expense(SGA) was $26,957 Mil.
Total Current Liabilities was $188,030 Mil.
Long-Term Debt & Capital Lease Obligation was $133,741 Mil.
Net Income was 9430.475 + 8644.567 + 9276.95 + 4131.934 = $31,484 Mil.
Non Operating Income was -120.265 + 1594.42 + 3062.187 + 1696.826 = $6,233 Mil.
Cash Flow from Operations was 3528.662 + 6221.793 + 9608.349 + 8447.678 = $27,806 Mil.

Total Receivables was $86,481 Mil.
Revenue was 72302.557 + 64335.255 + 63384.559 + 68414.942 = $268,437 Mil.
Gross Profit was 14329.733 + 9936.392 + 10384.662 + 11444.685 = $46,095 Mil.
Total Current Assets was $183,523 Mil.
Total Assets was $530,561 Mil.
Property, Plant and Equipment(Net PPE) was $95,537 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,223 Mil.
Selling, General, & Admin. Expense(SGA) was $26,845 Mil.
Total Current Liabilities was $168,277 Mil.
Long-Term Debt & Capital Lease Obligation was $122,745 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)
	=	(99861.149 / 308080.346)	/	(86480.994 / 268437.313)
	=	0.32414	/	0.322165
	=	1.0061

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)
	=	(46095.472 / 268437.313)	/	(60980.851 / 308080.346)
	=	0.171718	/	0.197938
	=	0.8675

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 - (221241.736 + 96698.006) / 585020.673)	/	(1 - (183522.912 + 95536.894) / 530561.414)
	=	0.456532	/	0.474029
	=	0.9631

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
	=	308080.346	/	268437.313
	=	1.1477

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))
	=	(15222.786 / (15222.786 + 95536.894))	/	(14414.908 / (14414.908 + 96698.006))
	=	0.13744	/	0.129732
	=	1.0594

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)
	=	(26957.221 / 308080.346)	/	(26845.474 / 268437.313)
	=	0.087501	/	0.100006
	=	0.875

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)
	=	((133740.696 + 188029.768) / 585020.673)	/	((122744.754 + 168276.772) / 530561.414)
	=	0.550016	/	0.548516
	=	1.0027

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
	=	(31483.926 - 6233.168	-	27806.482)	/	585020.673
	=	-0.004369

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.

Toyota Motor has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.

Toyota Motor Beneish M-Score Related Terms

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Toyota Motor (Toyota Motor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Toyota Motor Corp (NYSE:TM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TOYOF:USA TMN:Mexico 7203:Japan 7203:Japan TYT:UK TOM:Germany TOM:Germany TOMA:Germany TOM:Germany TMCO34:Brazil TOM:Austria TM:Argentina

Address

1 Toyota-cho, Aichi Prefecture, Toyota, JPN, 471-8571

Website

https://www.global.toyota

Founded in 1937, Toyota is one of the world's largest automakers with 10.56 million units sold at retail in fiscal 2023 across its light vehicle brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 51% excluding mini-vehicles, while U.S. share is around 15%. The firm also owns 3.3% of Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2023 sales excluding financial services were JPY 34.4 trillion. Toyota also has a financing arm and manufactures homes and boats.