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BA (Boeing Co) Beneish M-Score : -1.60 (As of Oct. 31, 2024)


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What is Boeing 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.

Warning Sign:

Beneish M-Score -1.6 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BA' s Beneish M-Score Range Over the Past 10 Years
Min: -8.36   Med: -2.71   Max: 18.48
Current: -1.6

During the past 13 years, the highest Beneish M-Score of Boeing Co was 18.48. The lowest was -8.36. And the median was -2.71.


Boeing Co Beneish M-Score Historical Data

The historical data trend for Boeing 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.

Boeing Co Beneish M-Score Chart

Boeing Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.38 -3.51 -3.94 -2.90 -3.04

Boeing Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -3.42 -3.04 -2.84 -2.64 -1.60

Competitive Comparison of Boeing Co's Beneish M-Score

For the Aerospace & Defense subindustry, Boeing 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.


Boeing Co's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Boeing Co's Beneish M-Score distribution charts can be found below:

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



Boeing 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 Boeing 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 * 1.0675+0.528 * 2.905+0.404 * 0.966+0.892 * 0.9675+0.115 * 1.125
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.053+4.679 * -0.028251-0.327 * 1.0449
=-1.60

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $12,707 Mil.
Revenue was 17840 + 16866 + 16569 + 22018 = $73,293 Mil.
Gross Profit was -3507 + 1229 + 1876 + 2697 = $2,295 Mil.
Total Current Assets was $109,436 Mil.
Total Assets was $137,695 Mil.
Property, Plant and Equipment(Net PPE) was $11,557 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,808 Mil.
Selling, General, & Admin. Expense(SGA) was $5,158 Mil.
Total Current Liabilities was $97,300 Mil.
Long-Term Debt & Capital Lease Obligation was $53,176 Mil.
Net Income was -6170 + -1439 + -343 + -23 = $-7,975 Mil.
Non Operating Income was 250 + 260 + 344 + 310 = $1,164 Mil.
Cash Flow from Operations was -1345 + -3923 + -3362 + 3381 = $-5,249 Mil.
Total Receivables was $12,304 Mil.
Revenue was 18104 + 19751 + 17921 + 19980 = $75,756 Mil.
Gross Profit was 1165 + 1939 + 1923 + 1864 = $6,891 Mil.
Total Current Assets was $106,935 Mil.
Total Assets was $134,281 Mil.
Property, Plant and Equipment(Net PPE) was $10,484 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,882 Mil.
Selling, General, & Admin. Expense(SGA) was $5,063 Mil.
Total Current Liabilities was $93,062 Mil.
Long-Term Debt & Capital Lease Obligation was $47,381 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)
=(12707 / 73293) / (12304 / 75756)
=0.173373 / 0.162416
=1.0675

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)
=(6891 / 75756) / (2295 / 73293)
=0.090963 / 0.031313
=2.905

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 - (109436 + 11557) / 137695) / (1 - (106935 + 10484) / 134281)
=0.121297 / 0.125572
=0.966

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
=73293 / 75756
=0.9675

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))
=(1882 / (1882 + 10484)) / (1808 / (1808 + 11557))
=0.152191 / 0.135279
=1.125

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)
=(5158 / 73293) / (5063 / 75756)
=0.070375 / 0.066833
=1.053

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)
=((53176 + 97300) / 137695) / ((47381 + 93062) / 134281)
=1.092821 / 1.045889
=1.0449

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
=(-7975 - 1164 - -5249) / 137695
=-0.028251

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.

Boeing Co has a M-score of -1.60 signals that the company is likely to be a manipulator.


Boeing Co Beneish M-Score Related Terms

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Boeing Co Business Description

Address
929 Long Bridge Drive, Arlington, VA, USA, 22202
Boeing is a major aerospace and defense firm. It operates in three segments: commercial airplanes; defense, space, and security; and Global services. Boeing's commercial airplanes segment competes with Airbus in the production of aircraft that can carry more than 130 passengers. Boeing's defense, space, and security segment competes with Lockheed, Northrop, and several other firms to create military aircraft, satellites, and weaponry. Global services provides aftermarket support to airlines.
Executives
Theodore Iii Colbert officer: CIO & SVP, Info & Analytics C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Steven M Mollenkopf director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Howard E Mckenzie officer: Chief Engineer & EVP, ET&T C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
Sabrina Soussan director BUHLMATTSTRASSE 3, MEGGEN V8 6045
Stephen E Biegun officer: SVP, Global Public Policy C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
Michael J Cleary officer: Controller C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
Brendan J. Nelson officer: President, Boeing Intn'l C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
David L Calhoun director
Brian R Besanceney officer: SVP, Chief Comm Officer C/O THE BOEING COMPANY, 100 N. RIVERSIDE, MC 5003-1001, CHICAGO IL 60606-1596
David L. Gitlin director UNITED TECHNOLOGIES CORPORATION, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Stephanie F Pope officer: President & CEO, BGS C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Lawrence W Kellner director 1600 SMITH ST., HQSEO, HOUSTON TX 77002
Edward Lee Dandridge officer: SVP, Communications C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Ziad S Ojakli officer: EVP, Gov't Ops FORD MOTOR COMPANY, 1350 I ST. NW, WASHINGTON D.C. DC 20005
David Leon Joyce director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210