Brown-Forman Beneish M-Score Historical Data
The historical data trend for Brown-Forman'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.
Brown-Forman Beneish M-Score Chart
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Brown-Forman Annual Data
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Apr15 |
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Apr19 |
Apr20 |
Apr21 |
Apr22 |
Apr23 |
Apr24 |
| Beneish M-Score |
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-2.44 |
-2.20 |
-2.44 |
-2.14 |
-2.46 |
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Brown-Forman Quarterly Data
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Jul19 |
Oct19 |
Jan20 |
Apr20 |
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Oct21 |
Jan22 |
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Jan23 |
Apr23 |
Jul23 |
Oct23 |
Jan24 |
Apr24 |
| Beneish M-Score |
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-2.14 |
-2.13 |
-2.06 |
-2.41 |
-2.46 |
Competitive Comparison of Brown-Forman's Beneish M-Score
For the Beverages - Wineries & Distilleries subindustry, Brown-Forman'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.
Brown-Forman's Beneish M-Score Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Brown-Forman's Beneish M-Score falls into.
Brown-Forman 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 Brown-Forman 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 * 0.9102 | + | 0.528 * 0.9757 | + | 0.404 * 0.9883 | + | 0.892 * 0.9882 | + | 0.115 * 1.2438 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0987 | + | 4.679 * 0.024859 | - | 0.327 * 0.9951 |
| = | -2.46 |
* 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 (Apr24) TTM: | Last Year (Apr23) TTM: |
Total Receivables was $769 Mil.
Revenue was 964 + 1069 + 1107 + 1038 = $4,178 Mil.
Gross Profit was 569 + 635 + 671 + 651 = $2,526 Mil.
Total Current Assets was $4,036 Mil.
Total Assets was $8,166 Mil.
Property, Plant and Equipment(Net PPE) was $1,074 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General, & Admin. Expense(SGA) was $1,355 Mil.
Total Current Liabilities was $1,559 Mil.
Long-Term Debt & Capital Lease Obligation was $2,372 Mil.
Net Income was 266 + 285 + 242 + 231 = $1,024 Mil.
Non Operating Income was 176 + -1 + 0 + -1 = $174 Mil.
Cash Flow from Operations was 285 + 265 + 59 + 38 = $647 Mil.
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Total Receivables was $855 Mil.
Revenue was 1046 + 1081 + 1094 + 1007 = $4,228 Mil.
Gross Profit was 635 + 624 + 613 + 622 = $2,494 Mil.
Total Current Assets was $3,801 Mil.
Total Assets was $7,777 Mil.
Property, Plant and Equipment(Net PPE) was $1,031 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General, & Admin. Expense(SGA) was $1,248 Mil.
Total Current Liabilities was $1,084 Mil.
Long-Term Debt & Capital Lease Obligation was $2,678 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) |
| = | (769 / 4178) | / | (855 / 4228) |
| = | 0.184059 | / | 0.202223 |
| | = | 0.9102 |
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) |
| = | (2494 / 4228) | / | (2526 / 4178) |
| = | 0.589877 | / | 0.604596 |
| | = | 0.9757 |
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 - (4036 + 1074) / 8166) | / | (1 - (3801 + 1031) / 7777) |
| = | 0.374235 | / | 0.378681 |
| | = | 0.9883 |
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 |
| = | 4178 | / | 4228 |
| | = | 0.9882 |
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)) |
| = | (80 / (80 + 1031)) | / | (66 / (66 + 1074)) |
| = | 0.072007 | / | 0.057895 |
| | = | 1.2438 |
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) |
| = | (1355 / 4178) | / | (1248 / 4228) |
| = | 0.324318 | / | 0.295175 |
| | = | 1.0987 |
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) |
| = | ((2372 + 1559) / 8166) | / | ((2678 + 1084) / 7777) |
| = | 0.481386 | / | 0.483734 |
| | = | 0.9951 |
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 |
| = | (1024 - 174 | - | 647) | / | 8166 |
| | = | 0.024859 |
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.
Brown-Forman has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.
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