Linde Beneish M-Score Historical Data
The historical data trend for Linde'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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Linde Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.37 |
-2.85 |
-2.73 |
-2.70 |
-2.68 |
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Linde 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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-2.70 |
-2.69 |
-2.67 |
-2.66 |
-2.68 |
Competitive Comparison
For the Specialty Chemicals subindustry, Linde'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.
Linde Beneish M-Score Distribution
For the Chemicals industry and Basic Materials sector, Linde's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Linde's Beneish M-Score falls into.
Linde 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 Linde 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 * 1.0536 | + | 0.528 * 0.8919 | + | 0.404 * 0.9976 | + | 0.892 * 0.9847 | + | 0.115 * 1.1279 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1079 | + | 4.679 * -0.037433 | - | 0.327 * 1.0025 |
| = | -2.68 |
* 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 $5,092 Mil.
Revenue was 8302 + 8155 + 8204 + 8193 = $32,854 Mil.
Gross Profit was 3871 + 3841 + 3888 + 3762 = $15,362 Mil.
Total Current Assets was $12,620 Mil.
Total Assets was $80,811 Mil.
Property, Plant and Equipment(Net PPE) was $25,490 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,816 Mil.
Selling, General, & Admin. Expense(SGA) was $3,131 Mil.
Total Current Liabilities was $15,717 Mil.
Long-Term Debt & Capital Lease Obligation was $14,112 Mil.
Net Income was 1543 + 1565 + 1575 + 1516 = $6,199 Mil.
Non Operating Income was -148 + 49 + -4 + 22 = $-81 Mil.
Cash Flow from Operations was 2727 + 2520 + 2150 + 1908 = $9,305 Mil.
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Total Receivables was $4,908 Mil.
Revenue was 7899 + 8797 + 8457 + 8211 = $33,364 Mil.
Gross Profit was 3472 + 3512 + 3517 + 3413 = $13,914 Mil.
Total Current Assets was $13,047 Mil.
Total Assets was $79,658 Mil.
Property, Plant and Equipment(Net PPE) was $24,420 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,204 Mil.
Selling, General, & Admin. Expense(SGA) was $2,870 Mil.
Total Current Liabilities was $16,479 Mil.
Long-Term Debt & Capital Lease Obligation was $12,852 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) |
| = | (5092 / 32854) | / | (4908 / 33364) |
| = | 0.154989 | / | 0.147105 |
| | = | 1.0536 |
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) |
| = | (13914 / 33364) | / | (15362 / 32854) |
| = | 0.417036 | / | 0.467584 |
| | = | 0.8919 |
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 - (12620 + 25490) / 80811) | / | (1 - (13047 + 24420) / 79658) |
| = | 0.528406 | / | 0.529652 |
| | = | 0.9976 |
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 |
| = | 32854 | / | 33364 |
| | = | 0.9847 |
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)) |
| = | (4204 / (4204 + 24420)) | / | (3816 / (3816 + 25490)) |
| = | 0.14687 | / | 0.130212 |
| | = | 1.1279 |
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) |
| = | (3131 / 32854) | / | (2870 / 33364) |
| = | 0.0953 | / | 0.086021 |
| | = | 1.1079 |
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) |
| = | ((14112 + 15717) / 80811) | / | ((12852 + 16479) / 79658) |
| = | 0.369121 | / | 0.368212 |
| | = | 1.0025 |
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 |
| = | (6199 - -81 | - | 9305) | / | 80811 |
| | = | -0.037433 |
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.
Linde has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.
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