BFFAF (Basf SE) Beneish M-Score : -3.16 (As of Mar. 02, 2025)

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What is Basf SE 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 -3.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BFFAF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4 Med: -2.68 Max: -1.97
Current: -3.16

During the past 13 years, the highest Beneish M-Score of Basf SE was -1.97. The lowest was -3.40. And the median was -2.68.

Basf SE Beneish M-Score Historical Data

The historical data trend for Basf SE'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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Basf SE Beneish M-Score Chart

Basf SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.25

-2.80

-2.26

-3.00

-3.15

Basf SE 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															-3.40	-3.15	-3.13	-3.14	-3.16

Competitive Comparison of Basf SE's Beneish M-Score

For the Chemicals subindustry, Basf SE'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.

Basf SE's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Basf SE's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Basf SE's Beneish M-Score falls into.

Basf SE 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 Basf SE 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 * 0.9613

0.528 * 0.9388

0.404 * 0.9415

0.892 * 0.9197

0.115 * 0.8967

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.084

4.679 * -0.090046

0.327 * 1.0722

-3.11

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $15,897 Mil.
Revenue was 17468.368 + 17342.304 + 19079.348 + 17307.525 = $71,198 Mil.
Gross Profit was 4247.503 + 4511.302 + 5379.348 + 4039.258 = $18,177 Mil.
Total Current Assets was $35,203 Mil.
Total Assets was $88,079 Mil.
Property, Plant and Equipment(Net PPE) was $28,498 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,600 Mil.
Selling, General, & Admin. Expense(SGA) was $11,185 Mil.
Total Current Liabilities was $18,855 Mil.
Long-Term Debt & Capital Lease Obligation was $21,134 Mil.
Net Income was 318.535 + 462.863 + 1486.957 + -1730.643 = $538 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2277.469 + 2100.108 + -557.609 + 4648.855 = $8,469 Mil.

Total Receivables was $17,981 Mil.
Revenue was 16792.956 + 18748.646 + 21403.64 + 20470.339 = $77,416 Mil.
Gross Profit was 3850.587 + 4488.624 + 5617.773 + 4598.517 = $18,556 Mil.
Total Current Assets was $36,756 Mil.
Total Assets was $88,157 Mil.
Property, Plant and Equipment(Net PPE) was $25,487 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,402 Mil.
Selling, General, & Admin. Expense(SGA) was $11,219 Mil.
Total Current Liabilities was $18,461 Mil.
Long-Term Debt & Capital Lease Obligation was $18,869 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)
	=	(15896.781 / 71197.545)	/	(17980.79 / 77415.581)
	=	0.223277	/	0.232263
	=	0.9613

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)
	=	(18555.501 / 77415.581)	/	(18177.411 / 71197.545)
	=	0.239687	/	0.25531
	=	0.9388

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 - (35203.108 + 28498.335) / 88078.801)	/	(1 - (36755.603 + 25486.66) / 88156.884)
	=	0.276768	/	0.29396
	=	0.9415

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
	=	71197.545	/	77415.581
	=	0.9197

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))
	=	(4402.116 / (4402.116 + 25486.66))	/	(5600.4 / (5600.4 + 28498.335))
	=	0.147283	/	0.164241
	=	0.8967

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)
	=	(11185.027 / 71197.545)	/	(11219.423 / 77415.581)
	=	0.157098	/	0.144925
	=	1.084

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)
	=	((21134.295 + 18854.606) / 88078.801)	/	((18868.73 + 18461.046) / 88156.884)
	=	0.454013	/	0.423447
	=	1.0722

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
	=	(537.712 - 0	-	8468.823)	/	88078.801
	=	-0.090046

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.

Basf SE has a M-score of -3.11 suggests that the company is unlikely to be a manipulator.

Basf SE Beneish M-Score Related Terms

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Basf SE Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Basf SE (OTCPK:BFFAF) » Definitions » Beneish M-Score

Traded in Other Exchanges

BASFY:USA BAS N:Mexico 1BAS:Italy BASF:Hungary BASd:UK 0BFA:UK BAS:Germany BASA:Germany BAS:Germany BAS:Germany BASA:Germany BAS:Germany BAS:Bulgaria BAS:Austria

Address

Carl-Bosch-Strasse 38, Ludwigshafen am Rhein, DEU, 67056

Website

https://www.basf.com

Founded in 1865 and based in Germany, BASF is the world's largest chemical company, with products spanning the full chemical spectrum of commodity to specialty. In addition, the company is a strong player in agricultural crop protection chemicals and emissions control catalysts for cars and trucks. Given its sheer size, BASF has a top-three market position in approximately 70% of its businesses. The company is undergoing a transformation where it will divest the surface technologies and agricultural solutions businesses over the next several years. These two segments combine to generate nearly 40% of total revenue.