Sumitomo Metal Mining Co (TSE:5713) Beneish M-Score : -2.39 (As of May. 20, 2024)

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

The historical rank and industry rank for Sumitomo Metal Mining Co's Beneish M-Score or its related term are showing as below:

TSE:5713' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.37 Max: -1.95
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Sumitomo Metal Mining Co was -1.95. The lowest was -2.86. And the median was -2.37.

Sumitomo Metal Mining Co Beneish M-Score Historical Data

The historical data trend for Sumitomo Metal Mining 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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Sumitomo Metal Mining Co Beneish M-Score Chart

Sumitomo Metal Mining Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.86

-2.35

-2.06

-2.32

-2.39

Sumitomo Metal Mining Co 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															-2.32	-2.15	-2.22	-2.36	-2.39

Competitive Comparison of Sumitomo Metal Mining Co's Beneish M-Score

For the Other Industrial Metals & Mining subindustry, Sumitomo Metal Mining 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.

Sumitomo Metal Mining Co's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sumitomo Metal Mining Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sumitomo Metal Mining Co's Beneish M-Score falls into.

Sumitomo Metal Mining 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 Sumitomo Metal Mining 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 * 0.9639

0.528 * 1.5292

0.404 * 1.1367

0.892 * 1.0157

0.115 * 1.1328

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0406

4.679 * -0.050292

0.327 * 1.0004

-2.39

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was 円185,238 Mil.
Revenue was 360349 + 367894 + 347955 + 369190 = 円1,445,388 Mil.
Gross Profit was 44760 + 32789 + 52243 + 36341 = 円166,133 Mil.
Total Current Assets was 円924,421 Mil.
Total Assets was 円3,023,844 Mil.
Property, Plant and Equipment(Net PPE) was 円759,484 Mil.
Depreciation, Depletion and Amortization(DDA) was 円56,224 Mil.
Selling, General, & Admin. Expense(SGA) was 円67,647 Mil.
Total Current Liabilities was 円463,610 Mil.
Long-Term Debt & Capital Lease Obligation was 円396,679 Mil.
Net Income was 275 + 20474 + 17120 + 20732 = 円58,601 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 5721 + 107591 + 102327 + -4964 = 円210,675 Mil.

Total Receivables was 円189,199 Mil.
Revenue was 347305 + 365057 + 352968 + 357659 = 円1,422,989 Mil.
Gross Profit was 23934 + 57371 + 74338 + 94463 = 円250,106 Mil.
Total Current Assets was 円1,022,843 Mil.
Total Assets was 円2,707,899 Mil.
Property, Plant and Equipment(Net PPE) was 円629,451 Mil.
Depreciation, Depletion and Amortization(DDA) was 円53,310 Mil.
Selling, General, & Admin. Expense(SGA) was 円63,997 Mil.
Total Current Liabilities was 円471,263 Mil.
Long-Term Debt & Capital Lease Obligation was 円298,848 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)
	=	(185238 / 1445388)	/	(189199 / 1422989)
	=	0.128158	/	0.132959
	=	0.9639

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)
	=	(250106 / 1422989)	/	(166133 / 1445388)
	=	0.175761	/	0.11494
	=	1.5292

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 - (924421 + 759484) / 3023844)	/	(1 - (1022843 + 629451) / 2707899)
	=	0.443124	/	0.389824
	=	1.1367

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
	=	1445388	/	1422989
	=	1.0157

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))
	=	(53310 / (53310 + 629451))	/	(56224 / (56224 + 759484))
	=	0.07808	/	0.068927
	=	1.1328

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)
	=	(67647 / 1445388)	/	(63997 / 1422989)
	=	0.046802	/	0.044974
	=	1.0406

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)
	=	((396679 + 463610) / 3023844)	/	((298848 + 471263) / 2707899)
	=	0.284502	/	0.284394
	=	1.0004

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
	=	(58601 - 0	-	210675)	/	3023844
	=	-0.050292

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.

Sumitomo Metal Mining Co has a M-score of -2.39 suggests that the company is unlikely to be a manipulator.

Sumitomo Metal Mining Co Beneish M-Score Related Terms

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Sumitomo Metal Mining Co (TSE:5713) Business Description

Industry

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Traded in Other Exchanges

STMNF:USA SMMYY:USA S19:Germany

Address

11-3, Shimbashi 5-chome, Minato-ku, Tokyo, JPN, 105-8716

Website

http://www.smm.co.jp

Sumitomo Metal Mining Co Ltd has three core operating segments, namely mineral resources, smelting and refining, and materials. The mineral resources business is engaged in exploration, development, production and sale of non-ferrous metals, primarily in Japan. The smelting and refining segment which generates the majority of group revenue, smelts and sells copper, nickel zinc, lead gold and others, and manufactures and sells stretched copper products and special steel castings. The materials division manufactures semiconductor materials, battery materials, bonding materials, aerated light-weight concrete, chemical catalysts among others.

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