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WMS (Advanced Drainage Systems) Beneish M-Score : -2.53 (As of Jul. 23, 2025)


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What is Advanced Drainage Systems 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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WMS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Med: -2.78   Max: -2
Current: -2.53

During the past 13 years, the highest Beneish M-Score of Advanced Drainage Systems was -2.00. The lowest was -3.05. And the median was -2.78.


Advanced Drainage Systems Beneish M-Score Historical Data

The historical data trend for Advanced Drainage Systems'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.

Advanced Drainage Systems Beneish M-Score Chart

Advanced Drainage Systems Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.91 -2.00 -3.05 -2.84 -2.53

Advanced Drainage Systems Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -2.84 -2.69 -2.67 -2.50 -2.53

Competitive Comparison of Advanced Drainage Systems's Beneish M-Score

For the Building Products & Equipment subindustry, Advanced Drainage Systems'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.


Advanced Drainage Systems's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Advanced Drainage Systems's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Advanced Drainage Systems's Beneish M-Score falls into.


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Advanced Drainage Systems 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 Advanced Drainage Systems 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 * 1.0193+0.528 * 1.0581+0.404 * 1.0657+0.892 * 1.0104+0.115 * 1.0116
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0155+4.679 * -0.034633-0.327 * 0.8959
=-2.53

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was $333 Mil.
Revenue was 615.761 + 690.538 + 782.61 + 815.336 = $2,904 Mil.
Gross Profit was 226.252 + 241.594 + 293.941 + 332.454 = $1,094 Mil.
Total Current Assets was $1,325 Mil.
Total Assets was $3,690 Mil.
Property, Plant and Equipment(Net PPE) was $1,051 Mil.
Depreciation, Depletion and Amortization(DDA) was $183 Mil.
Selling, General, & Admin. Expense(SGA) was $380 Mil.
Total Current Liabilities was $398 Mil.
Long-Term Debt & Capital Lease Obligation was $1,383 Mil.
Net Income was 77.157 + 81.231 + 130.382 + 161.402 = $450 Mil.
Non Operating Income was -3.079 + 0.477 + -0.617 + -0.292 = $-4 Mil.
Cash Flow from Operations was 41.227 + 189.938 + 166.9 + 183.426 = $581 Mil.
Total Receivables was $324 Mil.
Revenue was 653.84 + 662.367 + 780.22 + 778.046 = $2,874 Mil.
Gross Profit was 251.963 + 259.849 + 302.677 + 331.46 = $1,146 Mil.
Total Current Assets was $1,300 Mil.
Total Assets was $3,269 Mil.
Property, Plant and Equipment(Net PPE) was $876 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General, & Admin. Expense(SGA) was $371 Mil.
Total Current Liabilities was $440 Mil.
Long-Term Debt & Capital Lease Obligation was $1,321 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)
=(333.221 / 2904.245) / (323.576 / 2874.473)
=0.114736 / 0.112569
=1.0193

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)
=(1145.949 / 2874.473) / (1094.241 / 2904.245)
=0.398664 / 0.376773
=1.0581

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 - (1324.783 + 1051.04) / 3690.36) / (1 - (1299.967 + 876.351) / 3268.913)
=0.356208 / 0.334238
=1.0657

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
=2904.245 / 2874.473
=1.0104

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))
=(154.903 / (154.903 + 876.351)) / (183.281 / (183.281 + 1051.04))
=0.150208 / 0.148487
=1.0116

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)
=(380.378 / 2904.245) / (370.714 / 2874.473)
=0.130973 / 0.128968
=1.0155

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)
=((1382.589 + 398.396) / 3690.36) / ((1321.183 + 439.622) / 3268.913)
=0.482605 / 0.538652
=0.8959

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
=(450.172 - -3.511 - 581.491) / 3690.36
=-0.034633

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.

Advanced Drainage Systems has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.


Advanced Drainage Systems Beneish M-Score Related Terms

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Advanced Drainage Systems Business Description

Traded in Other Exchanges
Address
4640 Trueman Boulevard, Hilliard, OH, USA, 43026
Advanced Drainage Systems Inc is the manufacturer of water management solutions in the stormwater and onsite septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplaces. Its products are used across a broad range of end markets and applications, including residential, non-residential, infrastructure and agriculture applications. It operates business in three distinct reportable segments: Pipe; International, and Infiltrator. It generates a greater proportion of revenue from its Pipe segment, which consists of Pipe product sales in the United States. The Infiltrator is a provider of plastic leachfield chambers and systems, septic tanks and accessories, for use in residential applications.
Executives
Darin S. Harvey officer: EVP, Supply Chain & Logistics C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Tim A Makowski officer: SEE REMARKS (A) C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Michael G. Huebert officer: Senior Vice President C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Scott A Cottrill officer: EVP/CFO/Secretary/Treasurer C/O GOODRICH CORPORATION, 2730 WEST TYVOLA ROAD, CHARLOTTE NC 28217
Robert M Klein officer: EVP, Sales C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLARD OH 43026
D. Scott Barbour director, officer: President & CEO C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Anil Seetharam director 200 CLARENDON STREET, FLOOR 35, BOSTON MA 02116
Ross M Jones director ONE BOSTON PLACE, 33RD FL, BOSTON MA 02108
Waun Thomas J. Sr. officer: SVP, International C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Mark Haney director 3010 BRIARPARK DRIVE, HOUSTON TX 77042
Brian W. King officer: Executive Vice President C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Alexander R Fischer director C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLARD OH 43026
Craig J. Taylor officer: Executive Vice President C/O ADVANCED DRAINAGE SYSTEMS, INC., 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026
Perez De La Mesa Manuel J director
Kevin C Talley officer: EVP and CAO C/O ADVANCED DRAINAGE SYSTEMS INC, 4640 TRUEMAN BOULEVARD, HILLIARD OH 43026