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Twin Disc (Twin Disc) Beneish M-Score

: -2.89 (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 -2.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TWIN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25   Med: -2.57   Max: -1.73
Current: -2.89

During the past 13 years, the highest Beneish M-Score of Twin Disc was -1.73. The lowest was -3.25. And the median was -2.57.


Twin Disc Beneish M-Score Historical Data

The historical data trend for Twin Disc'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.

Twin Disc Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.83 -3.00 -2.99 -2.27 -2.48

Twin Disc 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 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 -2.22 -2.34 -2.48 -2.85 -2.89

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Twin Disc'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.


Twin Disc Beneish M-Score Distribution

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

* The bar in red indicates where Twin Disc's Beneish M-Score falls into.



Twin Disc 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 Twin Disc 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 * 0.9097+0.528 * 1.0266+0.404 * 0.9419+0.892 * 1.156+0.115 * 0.8868
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8987+4.679 * -0.102426-0.327 * 0.9531
=-2.89

* 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 $41.4 Mil.
Revenue was 72.994 + 63.554 + 83.924 + 73.772 = $294.2 Mil.
Gross Profit was 20.656 + 16.637 + 24.747 + 19.265 = $81.3 Mil.
Total Current Assets was $216.6 Mil.
Total Assets was $285.2 Mil.
Property, Plant and Equipment(Net PPE) was $52.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General, & Admin. Expense(SGA) was $65.2 Mil.
Total Current Liabilities was $97.5 Mil.
Long-Term Debt & Capital Lease Obligation was $25.7 Mil.
Net Income was 0.93 + -1.173 + 8.595 + 2.674 = $11.0 Mil.
Non Operating Income was -0.518 + 0.137 + 2.523 + -0.818 = $1.3 Mil.
Cash Flow from Operations was 6.245 + 9.802 + 16.039 + 6.827 = $38.9 Mil.
Total Receivables was $39.4 Mil.
Revenue was 63.351 + 55.913 + 75.974 + 59.289 = $254.5 Mil.
Gross Profit was 17.023 + 13.297 + 24.192 + 17.691 = $72.2 Mil.
Total Current Assets was $210.8 Mil.
Total Assets was $280.3 Mil.
Property, Plant and Equipment(Net PPE) was $52.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.8 Mil.
Selling, General, & Admin. Expense(SGA) was $62.8 Mil.
Total Current Liabilities was $86.8 Mil.
Long-Term Debt & Capital Lease Obligation was $40.2 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)
=(41.428 / 294.244) / (39.392 / 254.527)
=0.140795 / 0.154766
=0.9097

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)
=(72.203 / 254.527) / (81.305 / 294.244)
=0.283675 / 0.276318
=1.0266

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 - (216.577 + 52.351) / 285.19) / (1 - (210.797 + 52.49) / 280.254)
=0.057022 / 0.060542
=0.9419

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
=294.244 / 254.527
=1.156

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))
=(8.802 / (8.802 + 52.49)) / (10.116 / (10.116 + 52.351))
=0.143608 / 0.161942
=0.8868

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)
=(65.247 / 294.244) / (62.801 / 254.527)
=0.221745 / 0.246736
=0.8987

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)
=((25.686 + 97.54) / 285.19) / ((40.205 + 86.845) / 280.254)
=0.432084 / 0.453339
=0.9531

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
=(11.026 - 1.324 - 38.913) / 285.19
=-0.102426

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.

Twin Disc has a M-score of -2.89 suggests that the company is unlikely to be a manipulator.


Twin Disc Beneish M-Score Related Terms

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Twin Disc (Twin Disc) Business Description

Traded in Other Exchanges
Address
222 East Erie Street, Suite 400, Milwaukee, WI, USA, 53202
Twin Disc Inc is a United States-based firm engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. The company operates its business through two reportable segments: Manufacturing and Distribution. Its products portfolio includes marine transmissions, surface drives, propellers, and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems.
Executives
Kevin M. Olsen director C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915
Juliann Larimer director C/O ZEBRA TECHNOLOGIES CORPORATION, 333 CORPORATE WOODS PARKWAY, VERNON HILLS IL 60061
Michael Doar director ONE TECHNOLOGY WAY, INDIANAPOLIS IN 46268
David B Rayburn director
Malcolm F Moore director 143 WATER STREET, 143 WATER STREET, WEST BEND WI 53095
Christopher Daniel Bridleman officer: VP Global Operations 1328 RACINE STREET, RACINE WI 53403
Denise Wilcox officer: VP-HUMAN RESOURCES 1328 RACINE STREET, RACINE WI 53403
Jeffrey Scott Knutson officer: Corporate Controller 1328 RACINE STREET, RACINE WI 53403
John H Batten officer: VP-GM - Marine 1328 RACINE ST., RACINE WI 53403
David R Zimmer director 1255 INDIAN MOUND WEST, BLOOMFIELD MI 48301
Ggcp, Inc. 10 percent owner 189 MASON STREET, GREENWICH CT 06830
Gamco Investors, Inc. Et Al 10 percent owner 191 MASON STREET, GREENWICH CT 06830
Mario J Gabelli 10 percent owner 191 MASON STREET, GREENWICH CT 06830
Associated Capital Group, Inc. 10 percent owner 191 MASON STREET, GREENWICH CT 06830
Janet Plaut Giesselman director 25435 HARVARD RD., BEACHWOOD OH 44122