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Tachibana Eletech Co (TSE:8159) Beneish M-Score : -2.13 (As of May. 14, 2024)


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What is Tachibana Eletech 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 -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:8159' s Beneish M-Score Range Over the Past 10 Years
Min: -2.58   Med: -2.23   Max: -0.31
Current: -2.13

During the past 13 years, the highest Beneish M-Score of Tachibana Eletech Co was -0.31. The lowest was -2.58. And the median was -2.23.


Tachibana Eletech Co Beneish M-Score Historical Data

The historical data trend for Tachibana Eletech 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.

* Premium members only.

Tachibana Eletech Co Beneish M-Score Chart

Tachibana Eletech Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.34 -2.58 -2.49 -2.00 -2.13

Tachibana Eletech 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -2.13 - - -

Competitive Comparison of Tachibana Eletech Co's Beneish M-Score

For the Electronic Components subindustry, Tachibana Eletech 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.


Tachibana Eletech Co's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Tachibana Eletech Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tachibana Eletech Co's Beneish M-Score falls into.



Tachibana Eletech 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 Tachibana Eletech Co 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 * 0.989+0.528 * 0.9858+0.404 * 0.9056+0.892 * 1.1749+0.115 * 1.0428
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9233+4.679 * 0.052892-0.327 * 1.0554
=-2.13

* 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 (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was 円78,469 Mil.
Revenue was 円227,266 Mil.
Gross Profit was 円30,901 Mil.
Total Current Assets was 円124,523 Mil.
Total Assets was 円153,635 Mil.
Property, Plant and Equipment(Net PPE) was 円5,474 Mil.
Depreciation, Depletion and Amortization(DDA) was 円458 Mil.
Selling, General, & Admin. Expense(SGA) was 円2,737 Mil.
Total Current Liabilities was 円65,829 Mil.
Long-Term Debt & Capital Lease Obligation was 円89 Mil.
Net Income was 円7,841 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-285 Mil.
Total Receivables was 円67,532 Mil.
Revenue was 円193,431 Mil.
Gross Profit was 円25,926 Mil.
Total Current Assets was 円106,612 Mil.
Total Assets was 円135,172 Mil.
Property, Plant and Equipment(Net PPE) was 円5,596 Mil.
Depreciation, Depletion and Amortization(DDA) was 円490 Mil.
Selling, General, & Admin. Expense(SGA) was 円2,523 Mil.
Total Current Liabilities was 円54,850 Mil.
Long-Term Debt & Capital Lease Obligation was 円103 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)
=(78469 / 227266) / (67532 / 193431)
=0.345274 / 0.349127
=0.989

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)
=(25926 / 193431) / (30901 / 227266)
=0.134032 / 0.135968
=0.9858

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 - (124523 + 5474) / 153635) / (1 - (106612 + 5596) / 135172)
=0.153858 / 0.169887
=0.9056

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
=227266 / 193431
=1.1749

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))
=(490 / (490 + 5596)) / (458 / (458 + 5474))
=0.080513 / 0.077208
=1.0428

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)
=(2737 / 227266) / (2523 / 193431)
=0.012043 / 0.013043
=0.9233

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)
=((89 + 65829) / 153635) / ((103 + 54850) / 135172)
=0.429056 / 0.406541
=1.0554

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
=(7841 - 0 - -285) / 153635
=0.052892

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.

Tachibana Eletech Co has a M-score of -2.13 suggests that the company is unlikely to be a manipulator.


Tachibana Eletech Co Beneish M-Score Related Terms

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Tachibana Eletech Co (TSE:8159) Business Description

Traded in Other Exchanges
N/A
Address
1-13-25, Nishi-honmachi, Nishi-ku, Osaka, JPN, 550-8555
Tachibana Eletech Co Ltd is a Japan based technology driven company engaged in the sale of factory automation systems. It operates in the segments of Factory automation systems business, Semiconductors and electronic devices business, and Building services systems business. The company derives a majority of the revenue from the Factory automation systems business, which involves products and services like programmable controllers, inverters, AC servos, various types of motors, power distribution control equipment and control devices, industrial robots, and other products. It has a business presence in Japan and various other countries.

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