Krosaki Harima (TSE:5352) Beneish M-Score : -2.39 (As of Jun. 05, 2024)

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What is Krosaki Harima 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 -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:5352' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73 Med: -2.43 Max: -1.94
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Krosaki Harima was -1.94. The lowest was -2.73. And the median was -2.43.

Krosaki Harima Beneish M-Score Historical Data

The historical data trend for Krosaki Harima'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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Krosaki Harima Beneish M-Score Chart

Krosaki Harima Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.73

-2.60

-2.46

-2.10

-2.39

Krosaki Harima 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															-2.10	-	-	-	-2.39

Competitive Comparison of Krosaki Harima's Beneish M-Score

For the Building Materials subindustry, Krosaki Harima'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.

Krosaki Harima's Beneish M-Score Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Krosaki Harima's Beneish M-Score distribution charts can be found below:

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

Krosaki Harima 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 Krosaki Harima 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 * 1.0769

0.528 * 0.9278

0.404 * 0.9906

0.892 * 1.0716

0.115 * 0.9877

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.007306

0.327 * 0.907

-2.39

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was 円63,677 Mil.
Revenue was 円177,029 Mil.
Gross Profit was 円35,377 Mil.
Total Current Assets was 円119,166 Mil.
Total Assets was 円179,019 Mil.
Property, Plant and Equipment(Net PPE) was 円42,693 Mil.
Depreciation, Depletion and Amortization(DDA) was 円4,414 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円58,683 Mil.
Long-Term Debt & Capital Lease Obligation was 円19,495 Mil.
Net Income was 円12,416 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円13,724 Mil.

Total Receivables was 円55,180 Mil.
Revenue was 円165,202 Mil.
Gross Profit was 円30,631 Mil.
Total Current Assets was 円108,224 Mil.
Total Assets was 円163,340 Mil.
Property, Plant and Equipment(Net PPE) was 円39,310 Mil.
Depreciation, Depletion and Amortization(DDA) was 円4,009 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円61,177 Mil.
Long-Term Debt & Capital Lease Obligation was 円17,465 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)
	=	(63677 / 177029)	/	(55180 / 165202)
	=	0.359698	/	0.334015
	=	1.0769

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)
	=	(30631 / 165202)	/	(35377 / 177029)
	=	0.185415	/	0.199837
	=	0.9278

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 - (119166 + 42693) / 179019)	/	(1 - (108224 + 39310) / 163340)
	=	0.095856	/	0.096767
	=	0.9906

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
	=	177029	/	165202
	=	1.0716

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))
	=	(4009 / (4009 + 39310))	/	(4414 / (4414 + 42693))
	=	0.092546	/	0.093702
	=	0.9877

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 / 177029)	/	(0 / 165202)
	=	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)
	=	((19495 + 58683) / 179019)	/	((17465 + 61177) / 163340)
	=	0.436702	/	0.481462
	=	0.907

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
	=	(12416 - 0	-	13724)	/	179019
	=	-0.007306

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.

Krosaki Harima has a M-score of -2.39 suggests that the company is unlikely to be a manipulator.

Krosaki Harima Beneish M-Score Related Terms

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Krosaki Harima (TSE:5352) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Krosaki Harima Corp (TSE:5352) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

5352:Japan

Address

1-1, Higashihama-machi, Yahatanishi-ku, Kitakyushu, JPN, 806-8586

Website

http://www.krosaki.co.jp

Krosaki Harima Corp manufactures and sells refractory and ceramic products. Its refractory products include blast furnace, hot stove, coke oven, torpedo ladle, electric arc furnace, steel ladle, and continuous casting refractories, as well as oxygen converter refractories for basic oxygen steelmaking processes, and monolithic refractories for furnace repair/equipment; and walking beam and hearth, pusher, rotary hearth, double walking beam, roller hearth, batch-type reheating, tunnel kiln, and other industrial furnaces. It also provides advanced ceramic materials, including low thermal expansion, oxide engineering, and machinable ceramics; thin flat heaters, hot plates, and jacket heaters. In addition, it is involved in the furnace construction and maintenance activities.

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