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ROK (Rockwell Automation) Beneish M-Score : -2.65 (As of Oct. 31, 2024)


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What is Rockwell Automation 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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ROK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92   Med: -2.57   Max: -2.13
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Rockwell Automation was -2.13. The lowest was -2.92. And the median was -2.57.


Rockwell Automation Beneish M-Score Historical Data

The historical data trend for Rockwell Automation'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.

Rockwell Automation Beneish M-Score Chart

Rockwell Automation Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.65 -2.37 -2.46 -2.21 -2.38

Rockwell Automation Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -2.17 -2.38 -2.48 -2.51 -2.65

Competitive Comparison of Rockwell Automation's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Rockwell Automation'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.


Rockwell Automation's Beneish M-Score Distribution in the Industrial Products Industry

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

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



Rockwell Automation 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 Rockwell Automation 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 * 0.8191+0.528 * 1.0401+0.404 * 1.0091+0.892 * 1.0197+0.115 * 0.9485
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.956+4.679 * -0.011217-0.327 * 0.9954
=-2.65

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $1,875 Mil.
Revenue was 2050.6 + 2126 + 2052.1 + 2562.9 = $8,792 Mil.
Gross Profit was 794.8 + 833.4 + 794.6 + 1055.5 = $3,478 Mil.
Total Current Assets was $3,923 Mil.
Total Assets was $11,189 Mil.
Property, Plant and Equipment(Net PPE) was $1,142 Mil.
Depreciation, Depletion and Amortization(DDA) was $305 Mil.
Selling, General, & Admin. Expense(SGA) was $1,970 Mil.
Total Current Liabilities was $3,789 Mil.
Long-Term Debt & Capital Lease Obligation was $2,892 Mil.
Net Income was 232 + 266.2 + 215.2 + 193.5 = $907 Mil.
Non Operating Income was -6.2 + 9.2 + 7 + -248.6 = $-239 Mil.
Cash Flow from Operations was 279.1 + 119.8 + 32.6 + 839.5 = $1,271 Mil.
Total Receivables was $2,245 Mil.
Revenue was 2238.7 + 2275.4 + 1981 + 2126.3 = $8,621 Mil.
Gross Profit was 915.4 + 932.5 + 813.6 + 886.4 = $3,548 Mil.
Total Current Assets was $4,401 Mil.
Total Assets was $11,743 Mil.
Property, Plant and Equipment(Net PPE) was $972 Mil.
Depreciation, Depletion and Amortization(DDA) was $243 Mil.
Selling, General, & Admin. Expense(SGA) was $2,021 Mil.
Total Current Liabilities was $3,922 Mil.
Long-Term Debt & Capital Lease Obligation was $3,124 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)
=(1875.1 / 8791.6) / (2245 / 8621.4)
=0.213283 / 0.260399
=0.8191

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)
=(3547.9 / 8621.4) / (3478.3 / 8791.6)
=0.411522 / 0.395639
=1.0401

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 - (3922.8 + 1141.6) / 11188.6) / (1 - (4401.1 + 972.2) / 11743.3)
=0.547361 / 0.542437
=1.0091

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
=8791.6 / 8621.4
=1.0197

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))
=(242.7 / (242.7 + 972.2)) / (304.6 / (304.6 + 1141.6))
=0.19977 / 0.210621
=0.9485

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)
=(1970 / 8791.6) / (2020.7 / 8621.4)
=0.224078 / 0.234382
=0.956

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)
=((2892.2 + 3789.4) / 11188.6) / ((3123.5 + 3922.1) / 11743.3)
=0.597179 / 0.599968
=0.9954

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
=(906.9 - -238.6 - 1271) / 11188.6
=-0.011217

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.

Rockwell Automation has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.


Rockwell Automation Beneish M-Score Related Terms

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Rockwell Automation Business Description

Address
1201 South Second Street, Milwaukee, WI, USA, 53204
With roots tracing back to the early 1900s, Rockwell Automation is the successor to Rockwell International, which spun off its avionics segment in 2001. It is a pure-play industrial automation company that operates through three segments. Its largest segment by revenue, intelligent devices, sells factory floor-level devices such as motors, drives, sensors, relays, and actuators. Its software & control segment sells visualization, simulation, and human-machine interface software and control products such as programmable controllers, computers, and operator terminals. Its smallest segment, lifecycle services, offers digital consulting, engineered-to-order services, and other outsourced services such as remote monitoring, cybersecurity, and asset and plant maintenance and optimization.
Executives
Tessa M. Myers officer: SVP, Intelligent Devices 4545 W BROWN DEER ROAD, P.O. BOX 245036, MILWAUKEE WI 53224
Matthew W. Fordenwalt officer: SVP Lifecycle Services 1201 S. 2ND STREET, MILWAUKEE WI 53204
Christopher Nardecchia officer: SVP, Chief Information Officer 1201 S. 2ND STREET, MILWAUKEE WI 53204
Isaac Woods officer: Vice President and Treasurer 1201 S 2ND STREET, MILWAUKEE WI 53204
Robert L. Buttermore officer: SVP,Chief Supply Chain Officer 1201 S. 2ND STREET, MILWAUKEE WI 53204
Cyril Perducat officer: SVP, Technology 1201 S. 2ND STREET, MILWAUKEE WI 53204
John M Miller officer: VP and Chief IP Counsel C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Nicholas C Gangestad officer: Sr. VP and CFO 3M CENTER-OFFICE OF GENERAL COUNSEL, ST. PAUL MN 55144-1000
Scott Genereux officer: Sr.VP, Chief Revenue Officer 26650 ALISO VIEJO PARKWAY, ALISO VIEJO CA 92656
Rebecca W House officer: SVP, CLO and Secretary 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Blake D. Moret director, officer: President and CEO C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Brian A Shepherd officer: Sr. VP Software and Control 1201 S 2ND STREET, MILWAUKEE WI 53204
Frank C Kulaszewicz officer: SVP C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Veena M Lakkundi officer: SVP, Strategy & Corp Developmt 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Terry L. Riesterer officer: Vice President and Controller 1201 S. 2ND STREET, MILWAUKEE WI 53204