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Waters (Waters) Beneish M-Score

: -2.18 (As of Today)
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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 -2.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Med: -2.58   Max: -2.15
Current: -2.18

During the past 13 years, the highest Beneish M-Score of Waters was -2.15. The lowest was -3.02. And the median was -2.58.


Waters Beneish M-Score Historical Data

The historical data trend for Waters'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.

Waters Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.63 -2.86 -2.55 -2.17 -2.18

Waters Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.17 -2.26 -2.03 -2.08 -2.18

Competitive Comparison

For the Diagnostics & Research subindustry, Waters'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.


Waters Beneish M-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Waters's Beneish M-Score distribution charts can be found below:

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



Waters 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 Waters 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 * 0.9764+0.528 * 0.9736+0.404 * 1.7967+0.892 * 0.9948+0.115 * 0.8751
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1244+4.679 * 0.008346-0.327 * 0.9428
=-2.18

* 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 $702 Mil.
Revenue was 819.474 + 711.692 + 740.576 + 684.674 = $2,956 Mil.
Gross Profit was 501.114 + 420.285 + 439.5 + 400.294 = $1,761 Mil.
Total Current Assets was $1,753 Mil.
Total Assets was $4,627 Mil.
Property, Plant and Equipment(Net PPE) was $724 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General, & Admin. Expense(SGA) was $736 Mil.
Total Current Liabilities was $790 Mil.
Long-Term Debt & Capital Lease Obligation was $2,364 Mil.
Net Income was 216.205 + 134.552 + 150.554 + 140.923 = $642 Mil.
Non Operating Income was -0.557 + 0.328 + -0.352 + 1.388 = $1 Mil.
Cash Flow from Operations was 230.122 + 157.818 + 18.118 + 196.751 = $603 Mil.
Total Receivables was $723 Mil.
Revenue was 858.51 + 708.555 + 714.319 + 690.572 = $2,972 Mil.
Gross Profit was 510.32 + 401.454 + 407.113 + 404.887 = $1,724 Mil.
Total Current Assets was $1,764 Mil.
Total Assets was $3,281 Mil.
Property, Plant and Equipment(Net PPE) was $669 Mil.
Depreciation, Depletion and Amortization(DDA) was $130 Mil.
Selling, General, & Admin. Expense(SGA) was $658 Mil.
Total Current Liabilities was $786 Mil.
Long-Term Debt & Capital Lease Obligation was $1,587 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)
=(702.168 / 2956.416) / (722.892 / 2971.956)
=0.237506 / 0.243238
=0.9764

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)
=(1723.774 / 2971.956) / (1761.193 / 2956.416)
=0.580013 / 0.595719
=0.9736

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 - (1752.867 + 723.664) / 4626.854) / (1 - (1763.903 + 668.723) / 3281.453)
=0.464748 / 0.258674
=1.7967

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
=2956.416 / 2971.956
=0.9948

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))
=(130.423 / (130.423 + 668.723)) / (165.905 / (165.905 + 723.664))
=0.163203 / 0.1865
=0.8751

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)
=(736.014 / 2956.416) / (658.026 / 2971.956)
=0.248955 / 0.221412
=1.1244

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)
=((2364.439 + 789.58) / 4626.854) / ((1586.986 + 785.737) / 3281.453)
=0.681677 / 0.723071
=0.9428

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
=(642.234 - 0.807 - 602.809) / 4626.854
=0.008346

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.

Waters has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.


Waters (Waters) Business Description

Traded in Other Exchanges
Address
34 Maple Street, Milford, MA, USA, 01757
Water sells liquid chromatography, mass spectrometry, and thermal analysis tools. These analytical instruments provide essential information on various products, such as their molecular structures and physical properties, to help clients enhance the health and well-being of end users. As a percentage of sales in 2022, Waters generated 59% from pharmaceutical customers, 31% from industrial clients, and 10% from academic/government institutions.
Executives
Christopher A Kuebler director 210 CARNEGIE CENTER, PRINCETON NJ 08540
Richard H Fearon director 1239 GERBING ROAD, AMELIA ISLAND FL 32034
Edward Conard director
Daniel J. Brennan director BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Mark P Vergnano director 1007 MARKET STREET, WILMINGTON DE 19898
Gary E Hendrickson director 1101 THIRD STREET SOUTH, MINNEAPOLIS MN 55415
John M Ballbach director
Linda Baddour director PRA INTERNATIONAL, 12120 SUNSET HILLS ROAD, SUITE 600, RESTON VA 20190
Michael J Berendt director
Thomas P Salice director
Wei Jiang director 34 MAPLE STREET, MILFORD MA 01757
Amol Chaubal officer: SVP and Chief Financial Office 113 HARTWELL AVE, C/O QUANTERIX CORPORATION, LEXINGTON MA 02421
Jianqing Bennett officer: SVP TA Instruments Division 34 MAPLE STREET, MILFORD MA 01757
Joann A Reed director C/O AMERICAN TOWER CORP, 116 HUNTINGTON AVENUE, BOSTON MA 02116
Belinda Hyde officer: SVP, Global Human Resources 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277

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