Pentair Beneish M-Score Historical Data
The historical data trend for Pentair'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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Pentair Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
|
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-2.44 |
-2.85 |
-2.24 |
-2.46 |
-2.40 |
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Pentair 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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-2.46 |
-2.39 |
-2.52 |
-2.59 |
-2.40 |
Competitive Comparison
For the Specialty Industrial Machinery subindustry, Pentair'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.
Pentair Beneish M-Score Distribution
For the Industrial Products industry and Industrials sector, Pentair's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Pentair's Beneish M-Score falls into.
Pentair 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 Pentair 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 * 1.0953 | + | 0.528 * 0.8945 | + | 0.404 * 0.9965 | + | 0.892 * 0.9958 | + | 0.115 * 1.0146 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0088 | + | 4.679 * 0.000838 | - | 0.327 * 0.8634 |
| = | -2.40 |
* 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 $633 Mil.
Revenue was 984.6 + 1008.8 + 1082.5 + 1028.6 = $4,105 Mil.
Gross Profit was 366.1 + 371.8 + 399.5 + 381.8 = $1,519 Mil.
Total Current Assets was $1,569 Mil.
Total Assets was $6,563 Mil.
Property, Plant and Equipment(Net PPE) was $464 Mil.
Depreciation, Depletion and Amortization(DDA) was $115 Mil.
Selling, General, & Admin. Expense(SGA) was $680 Mil.
Total Current Liabilities was $950 Mil.
Long-Term Debt & Capital Lease Obligation was $2,067 Mil.
Net Income was 208 + 132.1 + 152.9 + 129.7 = $623 Mil.
Non Operating Income was -6.4 + 0.3 + 4.8 + -0.7 = $-2 Mil.
Cash Flow from Operations was 118.5 + 162.2 + 445.1 + -106.6 = $619 Mil.
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Total Receivables was $580 Mil.
Revenue was 1002.9 + 1055.1 + 1064.2 + 999.6 = $4,122 Mil.
Gross Profit was 324.8 + 348.1 + 359.5 + 332.2 = $1,365 Mil.
Total Current Assets was $1,559 Mil.
Total Assets was $6,448 Mil.
Property, Plant and Equipment(Net PPE) was $423 Mil.
Depreciation, Depletion and Amortization(DDA) was $107 Mil.
Selling, General, & Admin. Expense(SGA) was $677 Mil.
Total Current Liabilities was $1,063 Mil.
Long-Term Debt & Capital Lease Obligation was $2,370 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) |
| = | (632.5 / 4104.5) | / | (579.9 / 4121.8) |
| = | 0.154099 | / | 0.140691 |
| | = | 1.0953 |
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) |
| = | (1364.6 / 4121.8) | / | (1519.2 / 4104.5) |
| = | 0.331069 | / | 0.37013 |
| | = | 0.8945 |
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 - (1569 + 464) / 6563.3) | / | (1 - (1558.5 + 423.1) / 6447.5) |
| = | 0.690247 | / | 0.692656 |
| | = | 0.9965 |
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 |
| = | 4104.5 | / | 4121.8 |
| | = | 0.9958 |
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)) |
| = | (106.6 / (106.6 + 423.1)) | / | (114.8 / (114.8 + 464)) |
| = | 0.201246 | / | 0.198341 |
| | = | 1.0146 |
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) |
| = | (680.2 / 4104.5) | / | (677.1 / 4121.8) |
| = | 0.165721 | / | 0.164273 |
| | = | 1.0088 |
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) |
| = | ((2067.4 + 949.6) / 6563.3) | / | ((2369.7 + 1063.1) / 6447.5) |
| = | 0.459677 | / | 0.532423 |
| | = | 0.8634 |
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 |
| = | (622.7 - -2 | - | 619.2) | / | 6563.3 |
| | = | 0.000838 |
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.
Pentair has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.
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