Illinois Tool Works Beneish M-Score Historical Data
The historical data trend for Illinois Tool Works'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.
Illinois Tool Works Beneish M-Score Chart
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Illinois Tool Works Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.75 |
-2.67 |
-2.29 |
-2.27 |
-2.68 |
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Illinois Tool Works Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.27 |
-2.46 |
-2.53 |
-2.58 |
-2.68 |
Competitive Comparison of Illinois Tool Works's Beneish M-Score
For the Specialty Industrial Machinery subindustry, Illinois Tool Works'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.
Illinois Tool Works's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Beneish M-Score falls into.
Illinois Tool Works 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 Illinois Tool Works 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 * 0.9825 | + | 0.528 * 0.9681 | + | 0.404 * 0.9892 | + | 0.892 * 1.011 | + | 0.115 * 1.1006 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0118 | + | 4.679 * -0.037376 | - | 0.327 * 1.0306 |
| = | -2.68 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $3,251 Mil.
Revenue was 3983 + 4031 + 4074 + 4019 = $16,107 Mil.
Gross Profit was 1671 + 1712 + 1730 + 1678 = $6,791 Mil.
Total Current Assets was $6,235 Mil.
Total Assets was $15,518 Mil.
Property, Plant and Equipment(Net PPE) was $2,224 Mil.
Depreciation, Depletion and Amortization(DDA) was $395 Mil.
Selling, General, & Admin. Expense(SGA) was $2,638 Mil.
Total Current Liabilities was $4,675 Mil.
Long-Term Debt & Capital Lease Obligation was $6,487 Mil.
Net Income was 717 + 772 + 754 + 714 = $2,957 Mil.
Non Operating Income was -42 + 10 + 20 + 10 = $-2 Mil.
Cash Flow from Operations was 1039 + 982 + 790 + 728 = $3,539 Mil.
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Total Receivables was $3,273 Mil.
Revenue was 3971 + 4011 + 4011 + 3939 = $15,932 Mil.
Gross Profit was 1662 + 1640 + 1619 + 1582 = $6,503 Mil.
Total Current Assets was $6,270 Mil.
Total Assets was $15,422 Mil.
Property, Plant and Equipment(Net PPE) was $2,060 Mil.
Depreciation, Depletion and Amortization(DDA) was $410 Mil.
Selling, General, & Admin. Expense(SGA) was $2,579 Mil.
Total Current Liabilities was $4,460 Mil.
Long-Term Debt & Capital Lease Obligation was $6,304 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) |
| = | (3251 / 16107) | / | (3273 / 15932) |
| = | 0.201838 | / | 0.205436 |
| | = | 0.9825 |
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) |
| = | (6503 / 15932) | / | (6791 / 16107) |
| = | 0.408172 | / | 0.421618 |
| | = | 0.9681 |
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 - (6235 + 2224) / 15518) | / | (1 - (6270 + 2060) / 15422) |
| = | 0.454891 | / | 0.459863 |
| | = | 0.9892 |
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 |
| = | 16107 | / | 15932 |
| | = | 1.011 |
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)) |
| = | (410 / (410 + 2060)) | / | (395 / (395 + 2224)) |
| = | 0.165992 | / | 0.150821 |
| | = | 1.1006 |
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) |
| = | (2638 / 16107) | / | (2579 / 15932) |
| = | 0.16378 | / | 0.161875 |
| | = | 1.0118 |
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) |
| = | ((6487 + 4675) / 15518) | / | ((6304 + 4460) / 15422) |
| = | 0.719294 | / | 0.697964 |
| | = | 1.0306 |
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 |
| = | (2957 - -2 | - | 3539) | / | 15518 |
| | = | -0.037376 |
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.
Illinois Tool Works has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.
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