ABB Beneish M-Score Historical Data
The historical data trend for ABB'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.
ABB Beneish M-Score Chart
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ABB Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.68 |
-1.81 |
-2.68 |
-2.37 |
-2.63 |
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ABB Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.41 |
-2.45 |
-2.40 |
-2.63 |
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Competitive Comparison of ABB's Beneish M-Score
For the Electrical Equipment & Parts subindustry, ABB'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.
ABB's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, ABB's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where ABB's Beneish M-Score falls into.
ABB 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 ABB 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 * 0.9796 | + | 0.528 * 0.9431 | + | 0.404 * 0.9625 | + | 0.892 * 1.0628 | + | 0.115 * 1.033 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0044 | + | 4.679 * -0.04045 | - | 0.327 * 1.0117 |
| = | -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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was $8,520 Mil.
Revenue was 7870 + 8245 + 7968 + 8163 = $32,246 Mil.
Gross Profit was 2935 + 2848 + 2762 + 2888 = $11,433 Mil.
Total Current Assets was $21,784 Mil.
Total Assets was $41,112 Mil.
Property, Plant and Equipment(Net PPE) was $4,910 Mil.
Depreciation, Depletion and Amortization(DDA) was $790 Mil.
Selling, General, & Admin. Expense(SGA) was $5,585 Mil.
Total Current Liabilities was $17,782 Mil.
Long-Term Debt & Capital Lease Obligation was $6,988 Mil.
Net Income was 905 + 921 + 882 + 906 = $3,614 Mil.
Non Operating Income was 16 + 511 + 8 + 8 = $543 Mil.
Cash Flow from Operations was 726 + 1897 + 1351 + 760 = $4,734 Mil.
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Total Receivables was $8,183 Mil.
Revenue was 7859 + 7824 + 7406 + 7251 = $30,340 Mil.
Gross Profit was 2716 + 2658 + 2481 + 2290 = $10,145 Mil.
Total Current Assets was $20,692 Mil.
Total Assets was $40,039 Mil.
Property, Plant and Equipment(Net PPE) was $4,758 Mil.
Depreciation, Depletion and Amortization(DDA) was $795 Mil.
Selling, General, & Admin. Expense(SGA) was $5,232 Mil.
Total Current Liabilities was $17,949 Mil.
Long-Term Debt & Capital Lease Obligation was $5,896 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) |
| = | (8520 / 32246) | / | (8183 / 30340) |
| = | 0.264219 | / | 0.26971 |
| | = | 0.9796 |
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) |
| = | (10145 / 30340) | / | (11433 / 32246) |
| = | 0.334377 | / | 0.354556 |
| | = | 0.9431 |
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 - (21784 + 4910) / 41112) | / | (1 - (20692 + 4758) / 40039) |
| = | 0.350701 | / | 0.36437 |
| | = | 0.9625 |
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 |
| = | 32246 | / | 30340 |
| | = | 1.0628 |
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)) |
| = | (795 / (795 + 4758)) | / | (790 / (790 + 4910)) |
| = | 0.143166 | / | 0.138596 |
| | = | 1.033 |
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) |
| = | (5585 / 32246) | / | (5232 / 30340) |
| = | 0.1732 | / | 0.172446 |
| | = | 1.0044 |
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) |
| = | ((6988 + 17782) / 41112) | / | ((5896 + 17949) / 40039) |
| = | 0.6025 | / | 0.595544 |
| | = | 1.0117 |
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 |
| = | (3614 - 543 | - | 4734) | / | 41112 |
| | = | -0.04045 |
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.
ABB has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.
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