ESAB Beneish M-Score Historical Data
The historical data trend for ESAB'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.
ESAB Beneish M-Score Chart
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ESAB Annual Data
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Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
-2.94 |
-2.59 |
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ESAB Quarterly Data
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Dec19 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-3.02 |
-2.45 |
-2.50 |
-2.59 |
-2.51 |
Competitive Comparison of ESAB's Beneish M-Score
For the Metal Fabrication subindustry, ESAB'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.
ESAB's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, ESAB's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where ESAB's Beneish M-Score falls into.
ESAB 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 ESAB 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 * 1.0066 | + | 0.528 * 0.9388 | + | 0.404 * 1.0027 | + | 0.892 * 1.0574 | + | 0.115 * 1.0274 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0106 | + | 4.679 * -0.019547 | - | 0.327 * 0.887 |
| = | -2.51 |
* 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 $430 Mil.
Revenue was 689.744 + 689.348 + 680.996 + 720.422 = $2,781 Mil.
Gross Profit was 255.027 + 254.725 + 249.714 + 263.923 = $1,023 Mil.
Total Current Assets was $1,043 Mil.
Total Assets was $3,827 Mil.
Property, Plant and Equipment(Net PPE) was $385 Mil.
Depreciation, Depletion and Amortization(DDA) was $70 Mil.
Selling, General, & Admin. Expense(SGA) was $583 Mil.
Total Current Liabilities was $631 Mil.
Long-Term Debt & Capital Lease Obligation was $1,067 Mil.
Net Income was 59.951 + 50.239 + 57.57 + 65.573 = $233 Mil.
Non Operating Income was -14.079 + -6.368 + -3.129 + -5.169 = $-29 Mil.
Cash Flow from Operations was 44.467 + 122.395 + 107.378 + 62.654 = $337 Mil.
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Total Receivables was $404 Mil.
Revenue was 684 + 664.127 + 620.265 + 661.177 = $2,630 Mil.
Gross Profit was 247.389 + 224.389 + 209.338 + 227.472 = $909 Mil.
Total Current Assets was $1,061 Mil.
Total Assets was $3,849 Mil.
Property, Plant and Equipment(Net PPE) was $381 Mil.
Depreciation, Depletion and Amortization(DDA) was $71 Mil.
Selling, General, & Admin. Expense(SGA) was $545 Mil.
Total Current Liabilities was $630 Mil.
Long-Term Debt & Capital Lease Obligation was $1,295 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) |
| = | (430.149 / 2780.51) | / | (404.128 / 2629.569) |
| = | 0.154701 | / | 0.153686 |
| | = | 1.0066 |
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) |
| = | (908.588 / 2629.569) | / | (1023.389 / 2780.51) |
| = | 0.345527 | / | 0.368058 |
| | = | 0.9388 |
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 - (1042.748 + 384.593) / 3827.489) | / | (1 - (1060.697 + 381.114) / 3849.145) |
| = | 0.627082 | / | 0.62542 |
| | = | 1.0027 |
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 |
| = | 2780.51 | / | 2629.569 |
| | = | 1.0574 |
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)) |
| = | (71.16 / (71.16 + 381.114)) | / | (69.55 / (69.55 + 384.593)) |
| = | 0.157338 | / | 0.153146 |
| | = | 1.0274 |
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) |
| = | (582.643 / 2780.51) | / | (545.238 / 2629.569) |
| = | 0.209545 | / | 0.207349 |
| | = | 1.0106 |
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) |
| = | ((1066.793 + 631.302) / 3827.489) | / | ((1294.81 + 630.422) / 3849.145) |
| = | 0.443658 | / | 0.500171 |
| | = | 0.887 |
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 |
| = | (233.333 - -28.745 | - | 336.894) | / | 3827.489 |
| | = | -0.019547 |
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.
ESAB has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.
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