Akzo Nobel NV (Akzo Nobel NV) Beneish M-Score

: -2.71 (As of Today)

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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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AKZOY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.46 Max: -0.58
Current: -2.71

During the past 13 years, the highest Beneish M-Score of Akzo Nobel NV was -0.58. The lowest was -2.81. And the median was -2.46.

Akzo Nobel NV Beneish M-Score Historical Data

The historical data trend for Akzo Nobel NV'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.

Akzo Nobel NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.09

-2.80

-2.25

-2.46

-2.71

Akzo Nobel NV 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															-2.46	-2.43	-2.65	-2.70	-2.71

Competitive Comparison

For the Specialty Chemicals subindustry, Akzo Nobel NV'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.

Akzo Nobel NV Beneish M-Score Distribution

For the Chemicals industry and Basic Materials sector, Akzo Nobel NV's Beneish M-Score distribution charts can be found below:

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

Akzo Nobel NV 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 Akzo Nobel NV for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.048

0.528 * 0.9127

0.404 * 1.0093

0.892 * 1.0094

0.115 * 1.044

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0164

4.679 * -0.046923

0.327 * 0.9895

-2.68

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2,482 Mil.
Revenue was 2757.906 + 2925.293 + 2969.664 + 2844.754 = $11,498 Mil.
Gross Profit was 1116.685 + 1197.439 + 1198.267 + 1051.392 = $4,564 Mil.
Total Current Assets was $6,591 Mil.
Total Assets was $15,876 Mil.
Property, Plant and Equipment(Net PPE) was $2,504 Mil.
Depreciation, Depletion and Amortization(DDA) was $385 Mil.
Selling, General, & Admin. Expense(SGA) was $1,637 Mil.
Total Current Liabilities was $6,222 Mil.
Long-Term Debt & Capital Lease Obligation was $3,451 Mil.
Net Income was 44.711 + 201.708 + 127.844 + 100.642 = $475 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 625.954 + 316.969 + 330.444 + -53.533 = $1,220 Mil.

Total Receivables was $2,346 Mil.
Revenue was 2760.593 + 2833.663 + 3015.856 + 2780.837 = $11,391 Mil.
Gross Profit was 986.229 + 968.317 + 1091.966 + 1080.396 = $4,127 Mil.
Total Current Assets was $6,614 Mil.
Total Assets was $15,615 Mil.
Property, Plant and Equipment(Net PPE) was $2,393 Mil.
Depreciation, Depletion and Amortization(DDA) was $387 Mil.
Selling, General, & Admin. Expense(SGA) was $1,595 Mil.
Total Current Liabilities was $6,087 Mil.
Long-Term Debt & Capital Lease Obligation was $3,530 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)
	=	(2482.007 / 11497.617)	/	(2346.398 / 11390.949)
	=	0.215871	/	0.205988
	=	1.048

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)
	=	(4126.908 / 11390.949)	/	(4563.783 / 11497.617)
	=	0.362297	/	0.396933
	=	0.9127

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 - (6591.058 + 2503.817) / 15875.682)	/	(1 - (6614.407 + 2393.008) / 15615.466)
	=	0.427119	/	0.423173
	=	1.0093

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
	=	11497.617	/	11390.949
	=	1.0094

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))
	=	(386.66 / (386.66 + 2393.008))	/	(384.891 / (384.891 + 2503.817))
	=	0.139103	/	0.13324
	=	1.044

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)
	=	(1636.604 / 11497.617)	/	(1595.29 / 11390.949)
	=	0.142343	/	0.140049
	=	1.0164

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)
	=	((3451.472 + 6222.465) / 15875.682)	/	((3529.661 + 6086.864) / 15615.466)
	=	0.609356	/	0.615833
	=	0.9895

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
	=	(474.905 - 0	-	1219.834)	/	15875.682
	=	-0.046923

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.

Akzo Nobel NV has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Akzo Nobel NV Beneish M-Score Related Terms

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Akzo Nobel NV (Akzo Nobel NV) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

AKZOF:USA AKZA:Netherlands AKZAa:UK 0LND:UK AKU1:Germany AKZO:Austria

Address

Christian Neefestraat 2, Amsterdam, NH, NLD, 1077 WW

Website

https://www.akzonobel.com

Netherlands-based AkzoNobel is the world's third-largest paint and coatings producer. Europe is the largest market, with around 46% of sales generated in the Europe, Middle East, and Africa, or EMEA, region. Cumulatively, the Asia-Pacific and Latin American divisions have also grown quickly to more than 40% of sales. Construction-related end markets are the most important, but meaningful revenue is also generated from the industrial, consumer goods, and transportation markets.