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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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Ecolab's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Ecolab was -2.39. The lowest was -3.51. And the median was -2.60.
The historical data trend for Ecolab'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.
Ecolab Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Beneish M-Score | Get a 7-Day Free Trial | -2.73 | -3.33 | -2.53 | -2.52 | -2.67 |
Ecolab Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Beneish M-Score | Get a 7-Day Free Trial | -2.54 | -2.60 | -2.69 | -2.67 | -2.76 |
For the Specialty Chemicals subindustry, Ecolab'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.
For the Chemicals industry and Basic Materials sector, Ecolab's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Ecolab's Beneish M-Score falls into.
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 Ecolab 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 * 0.9618 | + | 0.528 * 0.9209 | + | 0.404 * 0.9843 | + | 0.892 * 1.0695 | + | 0.115 * 1.0717 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.0402 | + | 4.679 * -0.058985 | - | 0.327 * 0.9435 | |||||||
= | -2.76 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was $2,956 Mil. Revenue was 3751.9 + 3938.4 + 3958.1 + 3852.1 = $15,501 Mil. Gross Profit was 1623.8 + 1654 + 1627.6 + 1517.3 = $6,423 Mil. Total Current Assets was $5,212 Mil. Total Assets was $21,299 Mil. Property, Plant and Equipment(Net PPE) was $4,017 Mil. Depreciation, Depletion and Amortization(DDA) was $924 Mil. Selling, General, & Admin. Expense(SGA) was $4,149 Mil. Total Current Liabilities was $3,701 Mil. Long-Term Debt & Capital Lease Obligation was $7,963 Mil. Net Income was 412.1 + 405.2 + 404 + 329.7 = $1,551 Mil. Non Operating Income was -15.6 + -11.3 + -22.2 + -6.6 = $-56 Mil. Cash Flow from Operations was 649.4 + 852.5 + 787.7 + 573.4 = $2,863 Mil. |
Total Receivables was $2,874 Mil. Revenue was 3571.6 + 3671.2 + 3669.3 + 3580.6 = $14,493 Mil. Gross Profit was 1366.4 + 1416.3 + 1377.7 + 1369.5 = $5,530 Mil. Total Current Assets was $5,273 Mil. Total Assets was $21,252 Mil. Property, Plant and Equipment(Net PPE) was $3,743 Mil. Depreciation, Depletion and Amortization(DDA) was $938 Mil. Selling, General, & Admin. Expense(SGA) was $3,729 Mil. Total Current Liabilities was $4,490 Mil. Long-Term Debt & Capital Lease Obligation was $7,845 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) |
= | (2955.9 / 15500.5) | / | (2873.5 / 14492.7) | |
= | 0.190697 | / | 0.198272 | |
= | 0.9618 |
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) | |
= | (5529.9 / 14492.7) | / | (6422.7 / 15500.5) | |
= | 0.381565 | / | 0.414354 | |
= | 0.9209 |
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 - (5211.7 + 4017.4) / 21298.5) | / | (1 - (5272.8 + 3743.3) / 21251.5) | |
= | 0.566678 | / | 0.575743 | |
= | 0.9843 |
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 | |
= | 15500.5 | / | 14492.7 | |
= | 1.0695 |
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)) |
= | (938.3 / (938.3 + 3743.3)) | / | (924.1 / (924.1 + 4017.4)) | |
= | 0.200423 | / | 0.187008 | |
= | 1.0717 |
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) |
= | (4149 / 15500.5) | / | (3729.4 / 14492.7) | |
= | 0.267669 | / | 0.25733 | |
= | 1.0402 |
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) |
= | ((7962.6 + 3701.1) / 21298.5) | / | ((7845.1 + 4489.6) / 21251.5) | |
= | 0.54763 | / | 0.580416 | |
= | 0.9435 |
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 | |
= | (1551 - -55.7 | - | 2863) | / | 21298.5 | |
= | -0.058985 |
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.
Ecolab has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Ecolab's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Laurie M Marsh | officer: Senior VP - Human Resources | 1601 W. DIEHL ROAD, NAPERVILLE IL 60563 |
David Maclennan | director | 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347 |
Nicholas J. Alfano | officer: EVP & PRES - GLOBAL INDUSTRIAL | 1 ECOLAB PLACE, SAINT PAUL MN 55102 |
Angela M Busch | officer: SVP - Corporate Development | 1 ECOLAB PLACE, SAINT PAUL MN 55102 |
Gregory B Cook | officer: EVP & PRES - INST GROUP | 1 ECOLAB PLACE, SAINT PAUL MN 55102 |
Nicolas A Granucci | officer: EVP & PRES - GLOBAL PEST | 1 ECOLAB PLACE, SAINT PAUL MN 55102 |
Larry L Berger | officer: Chief Technical Officer & SVP | 1 ECOLAB PLACE, SAINT PAUL MN 55102 |
Arthur J Higgins | director | C/O ZIMMER, INC., P.O. BOX 708, WARSAW IN 46580 |
Gail Peterson | officer: SVP - Global Mktg & Comms | 1 ECOLAB PLACE, SAINT PAUL MN 55102 |
Christophe Beck | officer: Executive V.P., Instit. NA | 370 WABASHA STREET NORTH, SAINT PAUL MN 55102 |
Eric Mark Green | director | 530 HERMAN O. WEST DRIVE, EXTON PA 19341 |
Gates William H Iii | 10 percent owner | 2365 CARILLON POINT, KIRKLAND WA 98033 |
Michael C. Mccormick | officer: Ex.VP, GC & Asst. Secretary | 1 ECOLAB PLACE, ST. PAUL MN 55102 |
Lanesha Minnix | officer: EVP, GC & SECRETARY | TWO LAKESIDE COMMONS, BUILDING TWO, 980 HAMMOND DRIVE, SUITE 500, ATLANTA GA 30328 |
Tracy B Mckibben | director | 100 RIVERSIDE BOULEVARD, #3S, NEW YORK NY 10069 |
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