NKT A/S (NKT A/S) Beneish M-Score : -3.03 (As of May. 14, 2024)

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What is NKT A/S 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 -3.03 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for NKT A/S's Beneish M-Score or its related term are showing as below:

NRKBY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72 Med: -2.81 Max: 1.52
Current: -3.03

During the past 13 years, the highest Beneish M-Score of NKT A/S was 1.52. The lowest was -3.72. And the median was -2.81.

NKT A/S Beneish M-Score Historical Data

The historical data trend for NKT A/S'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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NKT A/S Beneish M-Score Chart

NKT A/S Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.26

-2.68

-2.28

-2.93

-3.03

NKT A/S 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															-	-	-	-3.03	-

Competitive Comparison of NKT A/S's Beneish M-Score

For the Electrical Equipment & Parts subindustry, NKT A/S'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.

NKT A/S's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, NKT A/S's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where NKT A/S's Beneish M-Score falls into.

NKT A/S 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 NKT A/S 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 * 0.8441

0.528 * 0.9704

0.404 * 0.8044

0.892 * 1.2712

0.115 * 1.1319

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.11601

0.327 * 0.9834

-3.00

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $671 Mil.
Revenue was $2,800 Mil.
Gross Profit was $929 Mil.
Total Current Assets was $2,207 Mil.
Total Assets was $3,930 Mil.
Property, Plant and Equipment(Net PPE) was $1,106 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $1,904 Mil.
Long-Term Debt & Capital Lease Obligation was $213 Mil.
Net Income was $136 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $591 Mil.

Total Receivables was $625 Mil.
Revenue was $2,202 Mil.
Gross Profit was $709 Mil.
Total Current Assets was $1,464 Mil.
Total Assets was $2,932 Mil.
Property, Plant and Equipment(Net PPE) was $895 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $1,414 Mil.
Long-Term Debt & Capital Lease Obligation was $192 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)
	=	(670.883 / 2799.564)	/	(625.212 / 2202.331)
	=	0.239638	/	0.283886
	=	0.8441

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)
	=	(709.216 / 2202.331)	/	(929.008 / 2799.564)
	=	0.32203	/	0.33184
	=	0.9704

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 - (2206.652 + 1105.671) / 3930.207)	/	(1 - (1463.665 + 894.915) / 2931.568)
	=	0.157214	/	0.195454
	=	0.8044

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
	=	2799.564	/	2202.331
	=	1.2712

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))
	=	(90.466 / (90.466 + 894.915))	/	(97.601 / (97.601 + 1105.671))
	=	0.091808	/	0.081113
	=	1.1319

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)
	=	(0 / 2799.564)	/	(0 / 2202.331)
	=	0	/	0
	=	1

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)
	=	((213.195 + 1904.144) / 3930.207)	/	((191.631 + 1414.301) / 2931.568)
	=	0.538735	/	0.547806
	=	0.9834

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
	=	(135.551 - 0	-	591.494)	/	3930.207
	=	-0.11601

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.

NKT A/S has a M-score of -3.00 suggests that the company is unlikely to be a manipulator.

NKT A/S Beneish M-Score Related Terms

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NKT A/S (NKT A/S) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » NKT A/S (GREY:NRKBY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NRKBF:USA NKTc:UK 0MGC:UK NKT:Denmark NKT:Germany

Address

Vibeholms Alle 20, Broendby, DNK, 2605

Website

https://www.nkt.com

NKT A/S is a Denmark-based holding company that acquires, owns, and manages industrial companies in three business areas: Solutions, Applications, and Service and Accessories. NKT provides cables for power infrastructure, including onshore and offshore power transmission system, and its solutions bring power to interconnections, hydro-electric, and nuclear power plants, including onshore and offshore wind farms, oil and gas platforms, and solar energy. NKT Photonics, a supplier of fiber lasers and photonic crystal fibers. Geographically, the company operates and derives its majority revenue from mainland Europe, but it's also expanding its business to the U.S., China, and the U.K.