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Gentherm (Gentherm) Beneish M-Score : -2.65 (As of Apr. 27, 2024)


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What is Gentherm 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 Gentherm's Beneish M-Score or its related term are showing as below:

THRM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.7   Med: -2.59   Max: -2.05
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Gentherm was -2.05. The lowest was -2.70. And the median was -2.59.


Gentherm Beneish M-Score Historical Data

The historical data trend for Gentherm'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.

Gentherm Beneish M-Score Chart

Gentherm 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 -2.69 -2.54 -2.67 -2.05 -2.65

Gentherm 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 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 -2.05 -2.21 -2.31 -2.51 -2.65

Competitive Comparison of Gentherm's Beneish M-Score

For the Auto Parts subindustry, Gentherm'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.


Gentherm's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Gentherm's Beneish M-Score distribution charts can be found below:

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



Gentherm 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 Gentherm 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 * 0.8565+0.528 * 0.9491+0.404 * 0.9797+0.892 * 1.2195+0.115 * 0.8843
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9614+4.679 * -0.037938-0.327 * 1.0497
=-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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $292 Mil.
Revenue was 366.933 + 366.195 + 372.323 + 363.625 = $1,469 Mil.
Gross Profit was 96.296 + 86.21 + 87.988 + 81.13 = $352 Mil.
Total Current Assets was $688 Mil.
Total Assets was $1,234 Mil.
Property, Plant and Equipment(Net PPE) was $273 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General, & Admin. Expense(SGA) was $156 Mil.
Total Current Liabilities was $325 Mil.
Long-Term Debt & Capital Lease Obligation was $238 Mil.
Net Income was 18.087 + 15.844 + -1.551 + 7.963 = $40 Mil.
Non Operating Income was -10.613 + 1.28 + -19.651 + -3.108 = $-32 Mil.
Cash Flow from Operations was 39.223 + 21.43 + 33.503 + 25.109 = $119 Mil.
Total Receivables was $280 Mil.
Revenue was 343.322 + 332.962 + 260.715 + 267.657 = $1,205 Mil.
Gross Profit was 69.808 + 80.352 + 59.377 + 64.113 = $274 Mil.
Total Current Assets was $684 Mil.
Total Assets was $1,239 Mil.
Property, Plant and Equipment(Net PPE) was $274 Mil.
Depreciation, Depletion and Amortization(DDA) was $44 Mil.
Selling, General, & Admin. Expense(SGA) was $133 Mil.
Total Current Liabilities was $286 Mil.
Long-Term Debt & Capital Lease Obligation was $253 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)
=(292.244 / 1469.076) / (279.789 / 1204.656)
=0.19893 / 0.232256
=0.8565

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)
=(273.65 / 1204.656) / (351.624 / 1469.076)
=0.22716 / 0.23935
=0.9491

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 - (687.564 + 272.592) / 1234.371) / (1 - (683.867 + 274.425) / 1239.3)
=0.22215 / 0.226747
=0.9797

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
=1469.076 / 1204.656
=1.2195

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))
=(44.394 / (44.394 + 274.425)) / (50.948 / (50.948 + 272.592))
=0.139245 / 0.15747
=0.8843

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)
=(155.579 / 1469.076) / (132.694 / 1204.656)
=0.105903 / 0.110151
=0.9614

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)
=((238.392 + 324.953) / 1234.371) / ((253.191 + 285.625) / 1239.3)
=0.456382 / 0.434774
=1.0497

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
=(40.343 - -32.092 - 119.265) / 1234.371
=-0.037938

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.

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


Gentherm Beneish M-Score Related Terms

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Gentherm (Gentherm) Business Description

Traded in Other Exchanges
Address
21680 Haggerty Road, Northville, MI, USA, 48167
Gentherm Inc is an automotive parts manufacturer. The business activities of the group function through the Automotive and Medical segments. The vast majority of the firm's revenue comes from the Automotive segment, which includes automotive climate comfort systems, automotive cable systems, battery performance solutions, and automotive electronics and software systems. The medical segment is comprised of the results from the patient temperature management business in the medical industry. Its geographical segments are the United States, China, South Korea, Germany, Japan, the Czech Republic, and other countries.
Executives
Kenneth E Washington director 6555 STATE HWY 161, IRVING TX 75039
Thomas Stocker officer: SVP and General Manager 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Rafael Barkas officer: SVP, Global Ops & Supply Chain 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Vishnu Sundaram officer: Chief Technology Officer 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Kauffman Wayne S Iii officer: VP and General Counsel 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Breisacher Nicholas officer: Chief Accounting Officer 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Barbara J Runyon officer: Chief Human Resources Officer 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Matthew Fisch officer: SVP & Chief Technology Officer 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Yijing Brentano officer: Senior VP IR and Corp Comm 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Phillip Eyler director, officer: Chief Executive Officer C/O HARMAN INTERNATIONAL INDUSTRIES, INC, 400 ATLANTIC STREET, STAMFORD CT 06901
Jaymi Wilson officer: SVP, Global Sales 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Jennifer L. Zoldos officer: Chief Accounting Officer 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Paul Cameron Giberson officer: Sr. VP Sales 21680 HAGGERTY ROAD, NORTHVILLE MI 48167
Matteo Anversa officer: Ex VP, CFO & Treasurer 1293 SOUTH MAIN STREET, AKRON OH 44301
Elizabeth Meter director 21680 HAGGERTY ROAD, NORTHVILLE MI 48167