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Xylem (XYL) Beneish M-Score

: -1.88 (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 -1.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XYL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.52   Max: -1.88
Current: -1.88

During the past 13 years, the highest Beneish M-Score of Xylem was -1.88. The lowest was -2.88. And the median was -2.52.


Xylem Beneish M-Score Historical Data

The historical data trend for Xylem'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.

Xylem 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 -2.61 -2.88 -2.46 -2.46 -1.88

Xylem 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 -2.46 -2.52 -1.74 -1.75 -1.88

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Xylem'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.


Xylem Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, Xylem's Beneish M-Score distribution charts can be found below:

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



Xylem 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 Xylem 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 * 1.1063+0.528 * 1.0229+0.404 * 1.2664+0.892 * 1.3336+0.115 * 1.0032
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9638+4.679 * -0.009682-0.327 * 0.6362
=-1.88

* 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 $1,617 Mil.
Revenue was 2118 + 2076 + 1722 + 1448 = $7,364 Mil.
Gross Profit was 756 + 764 + 651 + 546 = $2,717 Mil.
Total Current Assets was $3,884 Mil.
Total Assets was $16,112 Mil.
Property, Plant and Equipment(Net PPE) was $1,169 Mil.
Depreciation, Depletion and Amortization(DDA) was $436 Mil.
Selling, General, & Admin. Expense(SGA) was $1,757 Mil.
Total Current Liabilities was $2,205 Mil.
Long-Term Debt & Capital Lease Obligation was $2,268 Mil.
Net Income was 266 + 152 + 92 + 99 = $609 Mil.
Non Operating Income was -34 + -13 + -21 + -4 = $-72 Mil.
Cash Flow from Operations was 455 + 373 + 28 + -19 = $837 Mil.
Total Receivables was $1,096 Mil.
Revenue was 1506 + 1380 + 1364 + 1272 = $5,522 Mil.
Gross Profit was 573 + 524 + 520 + 467 = $2,084 Mil.
Total Current Assets was $3,012 Mil.
Total Assets was $7,952 Mil.
Property, Plant and Equipment(Net PPE) was $630 Mil.
Depreciation, Depletion and Amortization(DDA) was $236 Mil.
Selling, General, & Admin. Expense(SGA) was $1,367 Mil.
Total Current Liabilities was $1,590 Mil.
Long-Term Debt & Capital Lease Obligation was $1,880 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)
=(1617 / 7364) / (1096 / 5522)
=0.219582 / 0.198479
=1.1063

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)
=(2084 / 5522) / (2717 / 7364)
=0.377399 / 0.368957
=1.0229

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 - (3884 + 1169) / 16112) / (1 - (3012 + 630) / 7952)
=0.686383 / 0.542002
=1.2664

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
=7364 / 5522
=1.3336

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))
=(236 / (236 + 630)) / (436 / (436 + 1169))
=0.272517 / 0.271651
=1.0032

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)
=(1757 / 7364) / (1367 / 5522)
=0.238593 / 0.247555
=0.9638

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)
=((2268 + 2205) / 16112) / ((1880 + 1590) / 7952)
=0.277619 / 0.436368
=0.6362

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
=(609 - -72 - 837) / 16112
=-0.009682

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.

Xylem has a M-score of -1.88 suggests that the company is unlikely to be a manipulator.


Xylem (XYL) Business Description

Traded in Other Exchanges
Address
300 Water Street SE, Washington, DC, USA, 20003
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $5.5 billion in revenue and $672 million in adjusted operating income in 2022.
Executives
Victoria D Harker director 4300 WILSON BOULEVARD, ARLINGTON VA 22203
William K Grogan officer: SVP & Chief Financial Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Patrick Decker director, officer: President & CEO 9 ROSZEL ROAD, PRINCETON NJ 08540
Rodney Aulick officer: SVP & President, IS&S EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Lisa Glatch director EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Lynn C Swann director C/O AMERICAN HOMES 4 RENT, 23975 PARK SORRENTO, SUITE 300, CALABASAS CA 91302
Earl Ray Ellis director ONE LIBERTY PLAZA, 7TH FLOOR, NEW YORK NY 10006
Hayati Yarkadas officer: Senior Vice President C/O TRINSEO S.A., 1000 CHESTERBROOK BOULEVARD, SUITE 300, BERWYN PA 19312
Michael J. Mcgann officer: Senior Vice President 301 WATER STREET, SUITE 200, WASHINGTON DC 20003
Matthew Francis Pine officer: Senior Vice President XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Claudia S Toussaint officer: SVP, GC & Corporate Secretary 5454 W 110TH STREET, OVERLAND PARK KS 66211
Jeanne Beliveau-dunn director C/O XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Franz Cerwinka officer: SVP and President, Emerging Ma XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Sabol Colin R officer: SVP & Chief Strategy Officer 9921 MONTIANO DRIVE, NAPLES FL 34113
Surya N Mohapatra director 3 GIRALDA FARMS, MADISON NJ 07940

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