Armstrong World Industries Beneish M-Score Historical Data
The historical data trend for Armstrong World Industries'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.
Armstrong World Industries Beneish M-Score Chart
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Armstrong World Industries Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.18 |
-2.85 |
-2.49 |
-2.57 |
-2.79 |
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Armstrong World Industries Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
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Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.58 |
-2.79 |
-2.83 |
-2.79 |
-2.73 |
Competitive Comparison of Armstrong World Industries's Beneish M-Score
For the Building Products & Equipment subindustry, Armstrong World Industries'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.
Armstrong World Industries's Beneish M-Score Distribution in the Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's Beneish M-Score falls into.
Armstrong World Industries 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 Armstrong World Industries 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 * 0.9897 | + | 0.528 * 0.9376 | + | 0.404 * 1.0154 | + | 0.892 * 1.0401 | + | 0.115 * 0.9422 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0518 | + | 4.679 * -0.055454 | - | 0.327 * 0.9255 |
| = | -2.73 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was $126 Mil.
Revenue was 326.3 + 312.3 + 347.3 + 325.4 = $1,311 Mil.
Gross Profit was 124.3 + 119.5 + 141.4 + 124 = $509 Mil.
Total Current Assets was $331 Mil.
Total Assets was $1,692 Mil.
Property, Plant and Equipment(Net PPE) was $614 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General, & Admin. Expense(SGA) was $260 Mil.
Total Current Liabilities was $184 Mil.
Long-Term Debt & Capital Lease Obligation was $606 Mil.
Net Income was 59.9 + 46.8 + 69.5 + 60.2 = $236 Mil.
Non Operating Income was 30 + 13.7 + 25.7 + 27.1 = $97 Mil.
Cash Flow from Operations was 26.4 + 57.1 + 82.5 + 67.7 = $234 Mil.
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Total Receivables was $122 Mil.
Revenue was 310.2 + 304.5 + 325 + 321 = $1,261 Mil.
Gross Profit was 112.1 + 111.5 + 117.5 + 117.9 = $459 Mil.
Total Current Assets was $362 Mil.
Total Assets was $1,688 Mil.
Property, Plant and Equipment(Net PPE) was $592 Mil.
Depreciation, Depletion and Amortization(DDA) was $83 Mil.
Selling, General, & Admin. Expense(SGA) was $237 Mil.
Total Current Liabilities was $166 Mil.
Long-Term Debt & Capital Lease Obligation was $686 Mil.
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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) |
| = | (125.8 / 1311.3) | / | (122.2 / 1260.7) |
| = | 0.095935 | / | 0.09693 |
| | = | 0.9897 |
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) |
| = | (459 / 1260.7) | / | (509.2 / 1311.3) |
| = | 0.364083 | / | 0.388317 |
| | = | 0.9376 |
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 - (330.7 + 614.4) / 1691.5) | / | (1 - (362 + 592.4) / 1687.9) |
| = | 0.441265 | / | 0.434564 |
| | = | 1.0154 |
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 |
| = | 1311.3 | / | 1260.7 |
| | = | 1.0401 |
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)) |
| = | (83.4 / (83.4 + 592.4)) | / | (92.6 / (92.6 + 614.4)) |
| = | 0.123409 | / | 0.130976 |
| | = | 0.9422 |
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) |
| = | (259.6 / 1311.3) | / | (237.3 / 1260.7) |
| = | 0.197971 | / | 0.188229 |
| | = | 1.0518 |
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) |
| = | ((605.8 + 184.4) / 1691.5) | / | ((685.7 + 166.3) / 1687.9) |
| = | 0.467159 | / | 0.504769 |
| | = | 0.9255 |
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 |
| = | (236.4 - 96.5 | - | 233.7) | / | 1691.5 |
| | = | -0.055454 |
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.
Armstrong World Industries has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.
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