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Fortune Brands Innovations (Fortune Brands Innovations) Beneish M-Score

: -2.80 (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 -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Fortune Brands Innovations's Beneish M-Score or its related term are showing as below:

FBIN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.8   Med: -2.55   Max: -2.25
Current: -2.8

During the past 13 years, the highest Beneish M-Score of Fortune Brands Innovations was -2.25. The lowest was -2.80. And the median was -2.55.


Fortune Brands Innovations Beneish M-Score Historical Data

The historical data trend for Fortune Brands Innovations'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.

Fortune Brands Innovations Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.50 -2.25 -2.54 -2.55 -2.80

Fortune Brands Innovations 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 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 Premium Member Only Premium Member Only Premium Member Only -2.55 -3.02 -2.95 -2.76 -2.80

Competitive Comparison

For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.


Fortune Brands Innovations Beneish M-Score Distribution

For the Construction industry and Industrials sector, Fortune Brands Innovations's Beneish M-Score distribution charts can be found below:

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



Fortune Brands Innovations 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 Fortune Brands Innovations 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 * 1.0452+0.528 * 0.9906+0.404 * 1.1395+0.892 * 0.9795+0.115 * 1.3668
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.114+4.679 * -0.089703-0.327 * 1.0075
=-2.80

* 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 $534 Mil.
Revenue was 1161.3 + 1261.2 + 1163.7 + 1040 = $4,626 Mil.
Gross Profit was 494.9 + 540.1 + 468.1 + 408.3 = $1,911 Mil.
Total Current Assets was $2,046 Mil.
Total Assets was $6,565 Mil.
Property, Plant and Equipment(Net PPE) was $1,149 Mil.
Depreciation, Depletion and Amortization(DDA) was $169 Mil.
Selling, General, & Admin. Expense(SGA) was $1,167 Mil.
Total Current Liabilities was $1,200 Mil.
Long-Term Debt & Capital Lease Obligation was $2,813 Mil.
Net Income was 81.3 + 136.5 + 102.1 + 84.6 = $405 Mil.
Non Operating Income was -54.3 + 5.7 + -17 + 3.2 = $-62 Mil.
Cash Flow from Operations was 220.2 + 332 + 427.5 + 76.1 = $1,056 Mil.
Total Receivables was $522 Mil.
Revenue was 1131.9 + 1195.5 + 1255.4 + 1140.2 = $4,723 Mil.
Gross Profit was 472.3 + 478.9 + 513.4 + 468.4 = $1,933 Mil.
Total Current Assets was $2,460 Mil.
Total Assets was $6,121 Mil.
Property, Plant and Equipment(Net PPE) was $903 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General, & Admin. Expense(SGA) was $1,069 Mil.
Total Current Liabilities was $1,545 Mil.
Long-Term Debt & Capital Lease Obligation was $2,170 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)
=(534.2 / 4626.2) / (521.8 / 4723)
=0.115473 / 0.110481
=1.0452

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)
=(1933 / 4723) / (1911.4 / 4626.2)
=0.409274 / 0.413168
=0.9906

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 - (2045.7 + 1148.8) / 6565) / (1 - (2460.4 + 902.6) / 6120.9)
=0.513404 / 0.450571
=1.1395

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
=4626.2 / 4723
=0.9795

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))
=(191.6 / (191.6 + 902.6)) / (168.8 / (168.8 + 1148.8))
=0.175105 / 0.128112
=1.3668

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)
=(1166.8 / 4626.2) / (1069.3 / 4723)
=0.252216 / 0.226403
=1.114

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)
=((2813.4 + 1200.4) / 6565) / ((2169.7 + 1544.7) / 6120.9)
=0.611394 / 0.606839
=1.0075

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
=(404.5 - -62.4 - 1055.8) / 6565
=-0.089703

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.

Fortune Brands Innovations has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.


Fortune Brands Innovations Beneish M-Score Related Terms

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Fortune Brands Innovations (Fortune Brands Innovations) Business Description

Traded in Other Exchanges
Address
520 Lake Cook Road, Suite 300, Deerfield, IL, USA, 60015-5611
Fortune Brands Innovations is a leading home and security products company that operates two segments. The company's $2.6 billion plumbing segment, led by the Moen brand, sells faucets, showers, and other plumbing fixtures, and the $2.2 billion outdoors and security segment sells entry doors under the Therma-Tru brand name, Fiberon-branded patio decking, and locks and other security devices under the Master Lock and SentrySafe brand names.
Executives
Ann F Hackett director
Amee Chande director 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Stephanie L. Pugliese director 170 COUNTRYSIDE DRIVE, BELLEVILLE WI 53508
David V. Barry officer: EVP & CFO FORTUNE BRANDS INNOVATIONS, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Lee John Dong Gu officer: EVP Chief Strategy & Growth 520 LAKE COOK ROAD, DEERFIELD IL 60015
Ron Wilson officer: EVP, Chief Supply Chain FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Hiranda S Donoghue officer: EVP Chief Legal & Secretary 520 LAKE COOK ROAD, DEERFIELD IL 60015
Cheri M Phyfer officer: EVP, Group President 520 LAKE COOK ROAD, DEERFIELD IL 60015
Sheri Grissom officer: EVP, CHRO & Transformation 13000 WEST SILVER SPRING DRIVE, BUTLER WI 53007
Nicholas I. Fink director, officer: Chief Executive Officer 510 LAKE COOK ROAD, DEERFIELD IL 60015
Patrick D Hallinan officer: EVP & CFO FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Mackay A D David director
Martin Thomas officer: SVP Ops &Supply Chain Strategy FORTUNE BRANDS HOME & SECURITY, INC., SUITE 300, DEERFIELD IL 60015
May Russell officer: SVP & CDO 520 LAKE COOK ROAD, DEERFIELD IL 60015
Danny Luburic officer: Vice President & Controller FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015