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PG (Procter & Gamble Co) Beneish M-Score : -2.64 (As of Oct. 31, 2024)


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What is Procter & Gamble 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.

Good Sign:

Beneish M-Score -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99   Med: -2.61   Max: -2.3
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Procter & Gamble Co was -2.30. The lowest was -2.99. And the median was -2.61.


Procter & Gamble Co Beneish M-Score Historical Data

The historical data trend for Procter & Gamble 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.

Procter & Gamble Co Beneish M-Score Chart

Procter & Gamble Co Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.87 -2.50 -2.45 -2.55 -2.59

Procter & Gamble 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 -2.55 -2.59 -2.56 -2.59 -2.64

Competitive Comparison of Procter & Gamble Co's Beneish M-Score

For the Household & Personal Products subindustry, Procter & Gamble 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.


Procter & Gamble Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Beneish M-Score distribution charts can be found below:

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



Procter & Gamble 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 Procter & Gamble 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 * 1.0082+0.528 * 0.9543+0.404 * 0.9761+0.892 * 1.0077+0.115 * 0.9823
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0527+4.679 * -0.028194-0.327 * 0.9836
=-2.64

* 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 $6,314 Mil.
Revenue was 21737 + 20532 + 20195 + 21441 = $83,905 Mil.
Gross Profit was 11316 + 10184 + 10340 + 11297 = $43,137 Mil.
Total Current Assets was $27,449 Mil.
Total Assets was $126,482 Mil.
Property, Plant and Equipment(Net PPE) was $22,506 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,922 Mil.
Selling, General, & Admin. Expense(SGA) was $23,220 Mil.
Total Current Liabilities was $36,420 Mil.
Long-Term Debt & Capital Lease Obligation was $25,744 Mil.
Net Income was 3959 + 3137 + 3754 + 3468 = $14,318 Mil.
Non Operating Income was -554 + 98 + 260 + -1164 = $-1,360 Mil.
Cash Flow from Operations was 4302 + 5754 + 4088 + 5100 = $19,244 Mil.
Total Receivables was $6,215 Mil.
Revenue was 21871 + 20553 + 20068 + 20773 = $83,265 Mil.
Gross Profit was 11370 + 9940 + 9664 + 9876 = $40,850 Mil.
Total Current Assets was $24,940 Mil.
Total Assets was $122,531 Mil.
Property, Plant and Equipment(Net PPE) was $21,636 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,753 Mil.
Selling, General, & Admin. Expense(SGA) was $21,889 Mil.
Total Current Liabilities was $37,158 Mil.
Long-Term Debt & Capital Lease Obligation was $24,069 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)
=(6314 / 83905) / (6215 / 83265)
=0.075252 / 0.074641
=1.0082

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)
=(40850 / 83265) / (43137 / 83905)
=0.490602 / 0.514117
=0.9543

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 - (27449 + 22506) / 126482) / (1 - (24940 + 21636) / 122531)
=0.605043 / 0.619884
=0.9761

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
=83905 / 83265
=1.0077

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))
=(2753 / (2753 + 21636)) / (2922 / (2922 + 22506))
=0.112879 / 0.114913
=0.9823

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)
=(23220 / 83905) / (21889 / 83265)
=0.276742 / 0.262884
=1.0527

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)
=((25744 + 36420) / 126482) / ((24069 + 37158) / 122531)
=0.491485 / 0.499686
=0.9836

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
=(14318 - -1360 - 19244) / 126482
=-0.028194

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.

Procter & Gamble Co has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.


Procter & Gamble Co Beneish M-Score Related Terms

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Procter & Gamble Co Business Description

Address
One Procter and Gamble Plaza, Cincinnati, OH, USA, 45202
Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, generating more than $80 billion in annual sales. It operates with a lineup of leading brands, including more than 20 that generate north of $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. Sales outside its home turf represent more than half of the firm's consolidated total.
Executives
Jon R Moeller officer: Chief Financial Officer ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Andre Schulten officer: Chief Financial Officer ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Shailesh Jejurikar officer: President - Global Fabric Care ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
R. Alexandra Keith officer: President Global Hair & Beauty ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Gary A Coombe officer: President-Europe SMO ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Ma. Fatima Francisco officer: President - Global Baby ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Sundar G. Raman officer: CEO-Fabric & Home Care ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Balaji Purushothaman officer: Chief Human Resources Officer 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Marc S. Pritchard officer: Global Marketing Officer ONE PROCTER AND GAMBLE PLAZA, CINCINNATI OH 45202
Aguilar Moses Victor Javier officer: Chf Rsch, Dev & Innov Officer ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Jennifer L. Davis officer: CEO - Health Care 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Susan Street Whaley officer: Chief Legal Officer & Secy 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Matthew W. Janzaruk officer: SVP - Chief Accounting Officer 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Sheila Bonini director 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202