Taisho Pharmaceutical Holdings Co (TSE:4581) Beneish M-Score : -2.60 (As of Apr. 29, 2024)

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What is Taisho Pharmaceutical Holdings 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.

Good Sign:

Beneish M-Score -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:4581' s Beneish M-Score Range Over the Past 10 Years
Min: -2.8 Med: -2.56 Max: -2.43
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Taisho Pharmaceutical Holdings Co was -2.43. The lowest was -2.80. And the median was -2.56.

Taisho Pharmaceutical Holdings Co Beneish M-Score Historical Data

The historical data trend for Taisho Pharmaceutical Holdings 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.

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Taisho Pharmaceutical Holdings Co Beneish M-Score Chart

Taisho Pharmaceutical Holdings Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.45

-2.50

-2.80

-2.55

-2.60

Taisho Pharmaceutical Holdings Co 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	Get a 7-Day Free Trial															-	-2.60	-	-	-

Competitive Comparison of Taisho Pharmaceutical Holdings Co's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Taisho Pharmaceutical Holdings 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.

Taisho Pharmaceutical Holdings Co's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Taisho Pharmaceutical Holdings Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Taisho Pharmaceutical Holdings Co's Beneish M-Score falls into.

Taisho Pharmaceutical Holdings 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 Taisho Pharmaceutical Holdings Co 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 * 0.8671

0.528 * 1.0351

0.404 * 1.0266

0.892 * 1.1237

0.115 * 1.0904

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.023341

0.327 * 1.1176

-2.60

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was 円52,300 Mil.
Revenue was 円301,381 Mil.
Gross Profit was 円177,850 Mil.
Total Current Assets was 円375,880 Mil.
Total Assets was 円941,490 Mil.
Property, Plant and Equipment(Net PPE) was 円141,170 Mil.
Depreciation, Depletion and Amortization(DDA) was 円24,648 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円73,778 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円18,997 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円40,972 Mil.

Total Receivables was 円53,676 Mil.
Revenue was 円268,203 Mil.
Gross Profit was 円163,831 Mil.
Total Current Assets was 円378,864 Mil.
Total Assets was 円888,159 Mil.
Property, Plant and Equipment(Net PPE) was 円119,291 Mil.
Depreciation, Depletion and Amortization(DDA) was 円23,074 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円62,277 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)
	=	(52300 / 301381)	/	(53676 / 268203)
	=	0.173534	/	0.200132
	=	0.8671

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)
	=	(163831 / 268203)	/	(177850 / 301381)
	=	0.610847	/	0.590117
	=	1.0351

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 - (375880 + 141170) / 941490)	/	(1 - (378864 + 119291) / 888159)
	=	0.450817	/	0.439115
	=	1.0266

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
	=	301381	/	268203
	=	1.1237

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))
	=	(23074 / (23074 + 119291))	/	(24648 / (24648 + 141170))
	=	0.162076	/	0.148645
	=	1.0904

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 / 301381)	/	(0 / 268203)
	=	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 + 73778) / 941490)	/	((0 + 62277) / 888159)
	=	0.078363	/	0.070119
	=	1.1176

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
	=	(18997 - 0	-	40972)	/	941490
	=	-0.023341

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.

Taisho Pharmaceutical Holdings Co has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.

Taisho Pharmaceutical Holdings Co Beneish M-Score Related Terms

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Taisho Pharmaceutical Holdings Co (TSE:4581) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Taisho Pharmaceutical Holdings Co Ltd (TSE:4581) » Definitions » Beneish M-Score

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TAIPY:USA TAISF:USA

Address

3-24-1 Takada, Toshima-ku, Tokyo, JPN, 170-8655

Website

http://www.taisho-holdings.co.jp

Taisho Pharmaceutical Holding Co Ltd is a specialty and generic drug manufacturing company. The company maintains two operational segments, Self-Medication and Prescription Pharmaceuticals. The vast majority of Taisho's revenue is derived from its Self-Medication segment. The company considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities. The vast majority of sales are generated by sales to external customers in Japan.

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