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Electrolux Professional AB (OSTO:EPRO B) Beneish M-Score : -2.54 (As of May. 14, 2024)


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What is Electrolux Professional AB 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Electrolux Professional AB's Beneish M-Score or its related term are showing as below:

OSTO:EPRO B' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99   Med: -2.48   Max: -1.97
Current: -2.54

During the past 8 years, the highest Beneish M-Score of Electrolux Professional AB was -1.97. The lowest was -2.99. And the median was -2.48.


Electrolux Professional AB Beneish M-Score Historical Data

The historical data trend for Electrolux Professional AB'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.

Electrolux Professional AB Beneish M-Score Chart

Electrolux Professional AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.99 -2.42 -2.21 -2.63

Electrolux Professional AB 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 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 -2.23 -2.34 -2.64 -2.63 -2.54

Competitive Comparison of Electrolux Professional AB's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Electrolux Professional AB'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.


Electrolux Professional AB's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Electrolux Professional AB's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Electrolux Professional AB's Beneish M-Score falls into.



Electrolux Professional AB 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 Electrolux Professional AB 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 * 1.0461+0.528 * 0.9844+0.404 * 1.1463+0.892 * 1.0359+0.115 * 0.9893
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0173+4.679 * -0.03994-0.327 * 0.9941
=-2.54

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was kr2,318 Mil.
Revenue was 3055 + 2975 + 2752 + 3153 = kr11,935 Mil.
Gross Profit was 1054 + 956 + 945 + 1067 = kr4,022 Mil.
Total Current Assets was kr5,591 Mil.
Total Assets was kr13,946 Mil.
Property, Plant and Equipment(Net PPE) was kr2,027 Mil.
Depreciation, Depletion and Amortization(DDA) was kr459 Mil.
Selling, General, & Admin. Expense(SGA) was kr2,894 Mil.
Total Current Liabilities was kr5,055 Mil.
Long-Term Debt & Capital Lease Obligation was kr3,066 Mil.
Net Income was 171 + 169 + 159 + 257 = kr756 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0 Mil.
Cash Flow from Operations was 160 + 531 + 317 + 305 = kr1,313 Mil.
Total Receivables was kr2,139 Mil.
Revenue was 2968 + 3040 + 2782 + 2731 = kr11,521 Mil.
Gross Profit was 1030 + 967 + 925 + 900 = kr3,822 Mil.
Total Current Assets was kr5,503 Mil.
Total Assets was kr12,167 Mil.
Property, Plant and Equipment(Net PPE) was kr1,848 Mil.
Depreciation, Depletion and Amortization(DDA) was kr413 Mil.
Selling, General, & Admin. Expense(SGA) was kr2,746 Mil.
Total Current Liabilities was kr4,448 Mil.
Long-Term Debt & Capital Lease Obligation was kr2,679 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)
=(2318 / 11935) / (2139 / 11521)
=0.194219 / 0.185661
=1.0461

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)
=(3822 / 11521) / (4022 / 11935)
=0.331742 / 0.336992
=0.9844

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 - (5591 + 2027) / 13946) / (1 - (5503 + 1848) / 12167)
=0.45375 / 0.395825
=1.1463

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
=11935 / 11521
=1.0359

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))
=(413 / (413 + 1848)) / (459 / (459 + 2027))
=0.182663 / 0.184634
=0.9893

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)
=(2894 / 11935) / (2746 / 11521)
=0.24248 / 0.238347
=1.0173

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)
=((3066 + 5055) / 13946) / ((2679 + 4448) / 12167)
=0.582318 / 0.585765
=0.9941

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
=(756 - 0 - 1313) / 13946
=-0.03994

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.

Electrolux Professional AB has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.


Electrolux Professional AB Beneish M-Score Related Terms

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Electrolux Professional AB (OSTO:EPRO B) Business Description

Traded in Other Exchanges
Address
Franzengatan 6, Stockholm, SWE, SE-112 51
Electrolux Professional AB is a provider of food service, beverage, and laundry solutions, serving a wide range of customers globally, from restaurants and hotels to healthcare, educational, and other service facilities. The company's products include Combi ovens; Boiling & braising pans; Fry tops; Slicers & food processors; Planetary mixers; Vacuum packers & sealers; Refrigerated counters; Blast chillers; Waste management systems; Coffee grinders; hot, cold, and frozen beverages dispensers; Beer dispensing systems; and others. Its geographical segments are Europe; the Asia Pacific, the Middle East, Africa; and the Americas, of which the majority of its revenue comes from Europe.

Electrolux Professional AB (OSTO:EPRO B) Headlines

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