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APD (Air Products & Chemicals) Beneish M-Score : -2.91 (As of Oct. 31, 2024)


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What is Air Products & Chemicals 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 -2.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Air Products & Chemicals's Beneish M-Score or its related term are showing as below:

APD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21   Med: -2.75   Max: -2.02
Current: -2.91

During the past 13 years, the highest Beneish M-Score of Air Products & Chemicals was -2.02. The lowest was -3.21. And the median was -2.75.


Air Products & Chemicals Beneish M-Score Historical Data

The historical data trend for Air Products & Chemicals'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.

Air Products & Chemicals Beneish M-Score Chart

Air Products & Chemicals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.84 -3.06 -2.52 -2.32 -2.59

Air Products & Chemicals Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -2.62 -2.59 -2.62 -2.70 -2.91

Competitive Comparison of Air Products & Chemicals's Beneish M-Score

For the Specialty Chemicals subindustry, Air Products & Chemicals'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.


Air Products & Chemicals's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Air Products & Chemicals's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Air Products & Chemicals's Beneish M-Score falls into.



Air Products & Chemicals 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 Air Products & Chemicals 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 * 0.9525+0.528 * 0.908+0.404 * 0.9131+0.892 * 0.9326+0.115 * 1.1862
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.071+4.679 * -0.044912-0.327 * 1.1406
=-2.91

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $2,314 Mil.
Revenue was 2985.5 + 2930.2 + 2997.4 + 3191.3 = $12,104 Mil.
Gross Profit was 979.9 + 938.7 + 930.2 + 984.1 = $3,833 Mil.
Total Current Assets was $5,677 Mil.
Total Assets was $36,974 Mil.
Property, Plant and Equipment(Net PPE) was $22,464 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,428 Mil.
Selling, General, & Admin. Expense(SGA) was $947 Mil.
Total Current Liabilities was $4,475 Mil.
Long-Term Debt & Capital Lease Obligation was $13,522 Mil.
Net Income was 696.6 + 572.4 + 609.3 + 692.6 = $2,571 Mil.
Non Operating Income was 167.6 + 77.1 + 143.6 + 150.6 = $539 Mil.
Cash Flow from Operations was 1261.4 + 801.7 + 626.6 + 1002.9 = $3,693 Mil.
Total Receivables was $2,605 Mil.
Revenue was 3033.9 + 3200.1 + 3174.7 + 3570 = $12,979 Mil.
Gross Profit was 963.2 + 917.3 + 902.4 + 948.8 = $3,732 Mil.
Total Current Assets was $5,354 Mil.
Total Assets was $30,930 Mil.
Property, Plant and Equipment(Net PPE) was $17,484 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,334 Mil.
Selling, General, & Admin. Expense(SGA) was $948 Mil.
Total Current Liabilities was $3,948 Mil.
Long-Term Debt & Capital Lease Obligation was $9,251 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)
=(2313.6 / 12104.4) / (2604.5 / 12978.7)
=0.191137 / 0.200675
=0.9525

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)
=(3731.7 / 12978.7) / (3832.9 / 12104.4)
=0.287525 / 0.316653
=0.908

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 - (5677.4 + 22464.2) / 36974.3) / (1 - (5354 + 17483.6) / 30929.5)
=0.238888 / 0.261624
=0.9131

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
=12104.4 / 12978.7
=0.9326

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))
=(1333.8 / (1333.8 + 17483.6)) / (1427.6 / (1427.6 + 22464.2))
=0.070881 / 0.059753
=1.1862

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)
=(947.1 / 12104.4) / (948.2 / 12978.7)
=0.078244 / 0.073058
=1.071

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)
=((13522 + 4474.5) / 36974.3) / ((9250.7 + 3947.7) / 30929.5)
=0.48673 / 0.426725
=1.1406

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
=(2570.9 - 538.9 - 3692.6) / 36974.3
=-0.044912

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.

Air Products & Chemicals has a M-score of -2.91 suggests that the company is unlikely to be a manipulator.


Air Products & Chemicals Beneish M-Score Related Terms

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Air Products & Chemicals Business Description

Address
1940 Air Products Boulevard, Allentown, PA, USA, 18106-5500
Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the largest supplier of hydrogen and helium in the world. It has a unique portfolio serving customers in a number of industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated $12.6 billion in revenue in fiscal 2023.
Executives
Jeffrey Kutz officer: VP, Controller & PAO 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106-5500
Seifi Ghasemi director 100 OVERLOOK CENTER, PRINCETON NJ 08540
Sean D Major officer: Executive VP & General Counsel 100 E. WISCONSIN AVENUE, SUITE 2780, MILWAUKEE WI 53202
Tonit M Calaway director HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Wayne Thomas Smith director 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Melissa N. Schaeffer officer: Senior Vice President and CFO 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Edward L Monser director
Lisa Ann Davis director 2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Russell A Flugel officer: Chief Accounting Officer C/O THE MOSAIC COMPANY, 101 EAST KENNEDY BLVD., SUITE 2500, TAMPA FL 33602
Charles I Cogut director 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Samir Serhan officer: Executive Vice President 7201 HAMILTON BLVD., ALLENTOWN PA 18195
Jennifer Grant officer: VP 7201 HAMILTON BLVD, ALLENTOWN PA 18195
John D. Stanley officer: SR VP and General Counsel 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501
Guillermo Novo officer: Senior V.P. AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Painter Corning F. officer: Senior V.P. 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501