Dow Beneish M-Score Historical Data
The historical data trend for Dow'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.
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Dow Annual Data
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Trend |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
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-2.67 |
-2.87 |
-2.43 |
-2.79 |
-2.72 |
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Dow Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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|
|
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|
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|
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-2.79 |
-2.67 |
-2.66 |
-2.68 |
-2.72 |
Competitive Comparison
For the Chemicals subindustry, Dow'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.
Dow Beneish M-Score Distribution
For the Chemicals industry and Basic Materials sector, Dow's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Dow's Beneish M-Score falls into.
Dow 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 Dow 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 * 1.0876 | + | 0.528 * 1.3762 | + | 0.404 * 1.0177 | + | 0.892 * 0.7842 | + | 0.115 * 1.0809 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2386 | + | 4.679 * -0.063484 | - | 0.327 * 1.0018 |
| = | -2.72 |
* 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 $6,614 Mil.
Revenue was 10621 + 10730 + 11420 + 11851 = $44,622 Mil.
Gross Profit was 975 + 1138 + 1545 + 1222 = $4,880 Mil.
Total Current Assets was $17,614 Mil.
Total Assets was $57,967 Mil.
Property, Plant and Equipment(Net PPE) was $22,386 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,611 Mil.
Selling, General, & Admin. Expense(SGA) was $1,627 Mil.
Total Current Liabilities was $9,957 Mil.
Long-Term Debt & Capital Lease Obligation was $15,939 Mil.
Net Income was -105 + 302 + 485 + -93 = $589 Mil.
Non Operating Income was -468 + 85 + -34 + -510 = $-927 Mil.
Cash Flow from Operations was 1656 + 1658 + 1347 + 535 = $5,196 Mil.
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Total Receivables was $7,755 Mil.
Revenue was 11859 + 14115 + 15664 + 15264 = $56,902 Mil.
Gross Profit was 1203 + 1734 + 2765 + 2862 = $8,564 Mil.
Total Current Assets was $20,477 Mil.
Total Assets was $60,603 Mil.
Property, Plant and Equipment(Net PPE) was $21,669 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,758 Mil.
Selling, General, & Admin. Expense(SGA) was $1,675 Mil.
Total Current Liabilities was $11,331 Mil.
Long-Term Debt & Capital Lease Obligation was $15,695 Mil.
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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) |
| = | (6614 / 44622) | / | (7755 / 56902) |
| = | 0.148223 | / | 0.136287 |
| | = | 1.0876 |
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) |
| = | (8564 / 56902) | / | (4880 / 44622) |
| = | 0.150504 | / | 0.109363 |
| | = | 1.3762 |
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 - (17614 + 22386) / 57967) | / | (1 - (20477 + 21669) / 60603) |
| = | 0.309952 | / | 0.304556 |
| | = | 1.0177 |
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 |
| = | 44622 | / | 56902 |
| | = | 0.7842 |
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)) |
| = | (2758 / (2758 + 21669)) | / | (2611 / (2611 + 22386)) |
| = | 0.112908 | / | 0.104453 |
| | = | 1.0809 |
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) |
| = | (1627 / 44622) | / | (1675 / 56902) |
| = | 0.036462 | / | 0.029437 |
| | = | 1.2386 |
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) |
| = | ((15939 + 9957) / 57967) | / | ((15695 + 11331) / 60603) |
| = | 0.446737 | / | 0.445952 |
| | = | 1.0018 |
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 |
| = | (589 - -927 | - | 5196) | / | 57967 |
| | = | -0.063484 |
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.
Dow has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.
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