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SWK (Stanley Black & Decker) Beneish M-Score : -2.81 (As of Oct. 31, 2024)


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What is Stanley Black & Decker 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SWK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.53   Max: -1.88
Current: -2.81

During the past 13 years, the highest Beneish M-Score of Stanley Black & Decker was -1.88. The lowest was -2.88. And the median was -2.53.


Stanley Black & Decker Beneish M-Score Historical Data

The historical data trend for Stanley Black & Decker'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.

Stanley Black & Decker Beneish M-Score Chart

Stanley Black & Decker Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.53 -2.79 -2.15 -1.88 -2.60

Stanley Black & Decker 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 -2.37 -2.60 -2.61 -2.88 -2.81

Competitive Comparison of Stanley Black & Decker's Beneish M-Score

For the Tools & Accessories subindustry, Stanley Black & Decker'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.


Stanley Black & Decker's Beneish M-Score Distribution in the Industrial Products Industry

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

* The bar in red indicates where Stanley Black & Decker's Beneish M-Score falls into.



Stanley Black & Decker 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 Stanley Black & Decker 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 * 0.9651+0.528 * 0.768+0.404 * 1.0032+0.892 * 0.9595+0.115 * 0.9824
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0726+4.679 * -0.027057-0.327 * 0.9929
=-2.81

* 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 $1,503 Mil.
Revenue was 3751.3 + 4024.4 + 3869.5 + 3736.5 = $15,382 Mil.
Gross Profit was 1120.6 + 1141.2 + 1108.5 + 1104.4 = $4,475 Mil.
Total Current Assets was $6,831 Mil.
Total Assets was $22,482 Mil.
Property, Plant and Equipment(Net PPE) was $2,063 Mil.
Depreciation, Depletion and Amortization(DDA) was $598 Mil.
Selling, General, & Admin. Expense(SGA) was $3,301 Mil.
Total Current Liabilities was $5,292 Mil.
Long-Term Debt & Capital Lease Obligation was $5,604 Mil.
Net Income was 91.1 + -11.2 + 19.5 + -304.4 = $-205 Mil.
Non Operating Income was -155.4 + -256.3 + -120.5 + -261.6 = $-794 Mil.
Cash Flow from Operations was 285.8 + 573 + -431 + 769.3 = $1,197 Mil.
Total Receivables was $1,623 Mil.
Revenue was 3953.9 + 4158.9 + 3931.8 + 3986.8 = $16,031 Mil.
Gross Profit was 1060.6 + 932.1 + 835.5 + 753.5 = $3,582 Mil.
Total Current Assets was $7,379 Mil.
Total Assets was $24,097 Mil.
Property, Plant and Equipment(Net PPE) was $2,201 Mil.
Depreciation, Depletion and Amortization(DDA) was $624 Mil.
Selling, General, & Admin. Expense(SGA) was $3,207 Mil.
Total Current Liabilities was $5,663 Mil.
Long-Term Debt & Capital Lease Obligation was $6,099 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)
=(1503.1 / 15381.7) / (1623.3 / 16031.4)
=0.09772 / 0.101258
=0.9651

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)
=(3581.7 / 16031.4) / (4474.7 / 15381.7)
=0.223418 / 0.290911
=0.768

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 - (6830.9 + 2063) / 22481.8) / (1 - (7379.1 + 2200.7) / 24097.1)
=0.604396 / 0.60245
=1.0032

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
=15381.7 / 16031.4
=0.9595

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))
=(623.8 / (623.8 + 2200.7)) / (598.3 / (598.3 + 2063))
=0.220853 / 0.224815
=0.9824

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)
=(3300.6 / 15381.7) / (3207.3 / 16031.4)
=0.21458 / 0.200064
=1.0726

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)
=((5604.1 + 5292.3) / 22481.8) / ((6099.2 + 5663.3) / 24097.1)
=0.484676 / 0.488129
=0.9929

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
=(-205 - -793.8 - 1197.1) / 22481.8
=-0.027057

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.

Stanley Black & Decker has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.


Stanley Black & Decker Beneish M-Score Related Terms

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Stanley Black & Decker Business Description

Address
1000 Stanley Drive, New Britain, CT, USA, 06053
Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates in two reportable segments namely Tools and Outdoor and Industrial. It generates maximum revenue from the Tools and Outdoor segment. The Tools and Outdoor segment is comprised of the Power Tools Group (PTG), Hand Tools, Accessories and Storage (HTAS), and Outdoor Power Equipment (Outdoor) businesses. Geographically, the company generates revenue from the United States, Canada, Other Americas, Europe, and Asia. It derives a majority of its revenue from the United States.
Executives
Janet Link officer: SVP, General Counsel & Sec'y 6501 LEGACY DRIVE, PLANO TX 75024
Graham Robinson officer: SVP & President of Industrial 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Susan K Carter director C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Christopher John Nelson officer: Chief Operating Officer 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Tamer Abuaita officer: SVP, Global Supply Chain C/O SOVOS BRANDS, INC., 168 CENTENNIAL PARKWAY, SUITE 200, LOUISVILLE CO 80027
Patrick D Hallinan officer: EVP, Chief Financial Officer FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
John Lucas officer: SVP, Chief HR Officer 200 INNOVATION WAY, AKRON OH 44316
Walburger Corbin officer: Interim CFO 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Scot Greulach officer: Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Robert J Manning director 1201 THIRD AVE, STE 4900, SEATTLE WA 98101
Andrea J. Ayers director STANLEY BLACK & DECKER, IN., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Jocelyn Belisle officer: VP, Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Stephen Subasic officer: SVP, Chief HR Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Adrian V Mitchell director C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Jaime A Ramirez officer: Pres.Construct.&DIY, Latin Am. 1000 STANLEY DRIVE, NEW BRITAIN CT 06053