ATLKY (Atlas Copco AB) Beneish M-Score : -2.51 (As of Mar. 22, 2025)

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What is Atlas Copco AB 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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ATLKY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85 Med: -2.51 Max: 1.6
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Atlas Copco AB was 1.60. The lowest was -2.85. And the median was -2.51.

Atlas Copco AB Beneish M-Score Historical Data

The historical data trend for Atlas Copco AB'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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Atlas Copco AB Beneish M-Score Chart

Atlas Copco AB Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.74

-2.50

-2.10

-2.40

-2.56

Atlas Copco AB Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.40	-2.39	-2.58	-2.65	-2.56

Competitive Comparison of Atlas Copco AB's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Atlas Copco AB'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.

Atlas Copco AB's Beneish M-Score Distribution in the Industrial Products Industry

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

* The bar in red indicates where Atlas Copco AB's Beneish M-Score falls into.

Atlas Copco AB 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 Atlas Copco AB 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 * 0.938

0.528 * 1.015

0.404 * 1

0.892 * 1.0347

0.115 * 1.0225

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.011

4.679 * -0.035041

0.327 * 0.9071

-2.63

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $4,061 Mil.
Revenue was 4186.436 + 4213.999 + 4272.242 + 4118.122 = $16,791 Mil.
Gross Profit was 1736.004 + 1831.069 + 1827.024 + 1804.194 = $7,198 Mil.
Total Current Assets was $8,695 Mil.
Total Assets was $18,984 Mil.
Property, Plant and Equipment(Net PPE) was $2,806 Mil.
Depreciation, Depletion and Amortization(DDA) was $834 Mil.
Selling, General, & Admin. Expense(SGA) was $2,954 Mil.
Total Current Liabilities was $5,045 Mil.
Long-Term Debt & Capital Lease Obligation was $2,880 Mil.
Net Income was 709.877 + 700.948 + 728.712 + 688.867 = $2,828 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1070.642 + 886.597 + 809.669 + 726.71 = $3,494 Mil.

Total Receivables was $4,184 Mil.
Revenue was 4382.507 + 4013.153 + 4026.706 + 3804.874 = $16,227 Mil.
Gross Profit was 1918.382 + 1720.554 + 1756.6 + 1665.664 = $7,061 Mil.
Total Current Assets was $8,404 Mil.
Total Assets was $17,810 Mil.
Property, Plant and Equipment(Net PPE) was $2,385 Mil.
Depreciation, Depletion and Amortization(DDA) was $730 Mil.
Selling, General, & Admin. Expense(SGA) was $2,824 Mil.
Total Current Liabilities was $5,285 Mil.
Long-Term Debt & Capital Lease Obligation was $2,910 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)
	=	(4060.628 / 16790.799)	/	(4183.922 / 16227.24)
	=	0.241836	/	0.257833
	=	0.938

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)
	=	(7061.2 / 16227.24)	/	(7198.291 / 16790.799)
	=	0.435145	/	0.428704
	=	1.015

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 - (8694.675 + 2806.099) / 18983.887)	/	(1 - (8404.208 + 2385.158) / 17809.624)
	=	0.394182	/	0.394183
	=	1

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
	=	16790.799	/	16227.24
	=	1.0347

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))
	=	(729.803 / (729.803 + 2385.158))	/	(834.048 / (834.048 + 2806.099))
	=	0.23429	/	0.229125
	=	1.0225

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)
	=	(2953.83 / 16790.799)	/	(2823.654 / 16227.24)
	=	0.17592	/	0.174007
	=	1.011

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)
	=	((2879.563 + 5044.606) / 18983.887)	/	((2909.94 + 5285.057) / 17809.624)
	=	0.417416	/	0.460144
	=	0.9071

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
	=	(2828.404 - 0	-	3493.618)	/	18983.887
	=	-0.035041

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.

Atlas Copco AB has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Atlas Copco AB Beneish M-Score Related Terms

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Atlas Copco AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Atlas Copco AB (OTCPK:ATLKY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ATLFF:USA ATLPF:USA ATLCY:USA ATCO B:Sweden ATCO A:Sweden ATCOAs:UK 0XXT:UK 0XXV:UK ACO4:Germany

Address

Sickla Industrivag 19, Nacka, Stockholm, SWE, SE-105 23

Website

https://www.atlascopcogroup.com

Atlas Copco is a 140-year-old Swedish company that pioneered air compression technology and remains a leading air compressor manufacturer. Atlas Copco is also a leading manufacturer of vacuum pump equipment, industrial power tools, and portable power and air compression equipment. The company's operations match the geographic breadth of its customers, with a presence in 180 countries. Atlas Copco's revenue is derived from three sources: initial equipment sales, spare parts, and maintenance.