AHEXY (Adecco Group AG) Beneish M-Score : -2.66 (As of Dec. 13, 2024)

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What is Adecco Group AG 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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AHEXY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25 Med: -2.6 Max: -2.12
Current: -2.66

During the past 13 years, the highest Beneish M-Score of Adecco Group AG was -2.12. The lowest was -3.25. And the median was -2.60.

Adecco Group AG Beneish M-Score Historical Data

The historical data trend for Adecco Group AG'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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Adecco Group AG Beneish M-Score Chart

Adecco Group AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.59

-3.04

-2.60

-2.25

-2.64

Adecco Group AG Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.64	-2.64	-2.62	-2.69	-2.66

Competitive Comparison of Adecco Group AG's Beneish M-Score

For the Staffing & Employment Services subindustry, Adecco Group AG'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.

Adecco Group AG's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Adecco Group AG's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Adecco Group AG's Beneish M-Score falls into.

Adecco Group AG 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 Adecco Group AG for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9299

0.528 * 1.0223

0.404 * 1.0454

0.892 * 0.9904

0.115 * 1.0407

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9709

4.679 * -0.019416

0.327 * 1.0116

-2.61

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $4,612 Mil.
Revenue was 6330.744 + 6290.635 + 6214.13 + 6661.941 = $25,497 Mil.
Gross Profit was 1226.415 + 1218.515 + 1228.261 + 1449.291 = $5,122 Mil.
Total Current Assets was $5,498 Mil.
Total Assets was $13,171 Mil.
Property, Plant and Equipment(Net PPE) was $1,090 Mil.
Depreciation, Depletion and Amortization(DDA) was $276 Mil.
Selling, General, & Admin. Expense(SGA) was $4,419 Mil.
Total Current Liabilities was $5,455 Mil.
Long-Term Debt & Capital Lease Obligation was $3,250 Mil.
Net Income was 109.878 + 62.433 + 79.348 + 74.155 = $326 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 134.295 + 174.381 + -72.826 + 345.692 = $582 Mil.

Total Receivables was $5,007 Mil.
Revenue was 6358.591 + 6498.375 + 6308.351 + 6580.508 = $25,746 Mil.
Gross Profit was 1292.423 + 1305.525 + 1310.493 + 1379.237 = $5,288 Mil.
Total Current Assets was $5,980 Mil.
Total Assets was $13,551 Mil.
Property, Plant and Equipment(Net PPE) was $1,093 Mil.
Depreciation, Depletion and Amortization(DDA) was $291 Mil.
Selling, General, & Admin. Expense(SGA) was $4,596 Mil.
Total Current Liabilities was $5,219 Mil.
Long-Term Debt & Capital Lease Obligation was $3,634 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)
	=	(4611.543 / 25497.45)	/	(5007.471 / 25745.825)
	=	0.180863	/	0.194496
	=	0.9299

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)
	=	(5287.678 / 25745.825)	/	(5122.482 / 25497.45)
	=	0.20538	/	0.200902
	=	1.0223

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 - (5498.335 + 1089.9) / 13170.921)	/	(1 - (5979.723 + 1092.85) / 13550.694)
	=	0.499789	/	0.478066
	=	1.0454

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
	=	25497.45	/	25745.825
	=	0.9904

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))
	=	(290.957 / (290.957 + 1092.85))	/	(275.942 / (275.942 + 1089.9))
	=	0.210258	/	0.202031
	=	1.0407

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)
	=	(4418.921 / 25497.45)	/	(4595.539 / 25745.825)
	=	0.173308	/	0.178496
	=	0.9709

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)
	=	((3249.723 + 5455.05) / 13170.921)	/	((3633.938 + 5218.783) / 13550.694)
	=	0.660908	/	0.653304
	=	1.0116

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
	=	(325.814 - 0	-	581.542)	/	13170.921
	=	-0.019416

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.

Adecco Group AG has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

Adecco Group AG Beneish M-Score Related Terms

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Adecco Group AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Adecco Group AG (OTCPK:AHEXY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AHEXF:USA ADENz:UK 0QNM:UK ADIA:Germany ADEN:Switzerland

Address

Bellerivestrasse 30, Zurich, CHE, CH-8008

Website

https://www.adeccogroup.com

Adecco Group AG is a provider of human capital solutions including Flexible placement, Permanent placement, Career Transition, Outsourcing, Consulting Services in engineering, Digital and IT, Talent services, Training, Up/ Re-skilling and Other services. It is organised into three business units Adecco, Akkodis and LHH. The company provides services to businesses and organisations located throughout Europe, North America, Asia Pacific, South America, and North Africa.