BIRK (Birkenstock Holding) Beneish M-Score : -2.62 (As of Mar. 19, 2025)

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What is Birkenstock Holding 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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BIRK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.62 Med: -2.51 Max: -2.07
Current: -2.62

During the past 5 years, the highest Beneish M-Score of Birkenstock Holding was -2.07. The lowest was -2.62. And the median was -2.51.

Birkenstock Holding Beneish M-Score Historical Data

The historical data trend for Birkenstock Holding'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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Birkenstock Holding Beneish M-Score Chart

Birkenstock Holding Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

Sep24

Beneish M-Score

-2.07

-2.33

Birkenstock Holding Quarterly Data
	Sep20	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial									-	-2.58	-2.51	-2.33	-2.62

Competitive Comparison of Birkenstock Holding's Beneish M-Score

For the Footwear & Accessories subindustry, Birkenstock Holding'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.

Birkenstock Holding's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Birkenstock Holding's Beneish M-Score distribution charts can be found below:

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

Birkenstock Holding 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 Birkenstock Holding 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 * 0.8138

0.528 * 1.0548

0.404 * 0.9494

0.892 * 1.2096

0.115 * 0.9141

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7701

4.679 * -0.046953

0.327 * 0.9328

-2.62

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $96 Mil.
Revenue was 378.763 + 505.842 + 607.92 + 523.091 = $2,016 Mil.
Gross Profit was 228.308 + 298.251 + 361.598 + 294.739 = $1,183 Mil.
Total Current Assets was $1,217 Mil.
Total Assets was $5,241 Mil.
Property, Plant and Equipment(Net PPE) was $526 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General, & Admin. Expense(SGA) was $589 Mil.
Total Current Liabilities was $428 Mil.
Long-Term Debt & Capital Lease Obligation was $1,391 Mil.
Net Income was 21.067 + 58.23 + 80.344 + 77.883 = $238 Mil.
Non Operating Income was -12.534 + 3.111 + -4.475 + -5.96 = $-20 Mil.
Cash Flow from Operations was -12.194 + 158.277 + 302.995 + 54.388 = $503 Mil.

Total Receivables was $98 Mil.
Revenue was 330.342 + 399.726 + 512.671 + 423.643 = $1,666 Mil.
Gross Profit was 201.601 + 261.427 + 316.431 + 252.088 = $1,032 Mil.
Total Current Assets was $1,027 Mil.
Total Assets was $5,085 Mil.
Property, Plant and Equipment(Net PPE) was $484 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General, & Admin. Expense(SGA) was $632 Mil.
Total Current Liabilities was $347 Mil.
Long-Term Debt & Capital Lease Obligation was $1,545 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)
	=	(96.19 / 2015.616)	/	(97.715 / 1666.382)
	=	0.047722	/	0.058639
	=	0.8138

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)
	=	(1031.547 / 1666.382)	/	(1182.896 / 2015.616)
	=	0.619034	/	0.586866
	=	1.0548

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 - (1217.096 + 525.955) / 5241.035)	/	(1 - (1026.541 + 483.695) / 5085.001)
	=	0.667422	/	0.703002
	=	0.9494

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
	=	2015.616	/	1666.382
	=	1.2096

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))
	=	(92.995 / (92.995 + 483.695))	/	(112.662 / (112.662 + 525.955))
	=	0.161256	/	0.176416
	=	0.9141

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)
	=	(588.723 / 2015.616)	/	(632.017 / 1666.382)
	=	0.292081	/	0.379275
	=	0.7701

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)
	=	((1391.445 + 428.382) / 5241.035)	/	((1545.37 + 347.466) / 5085.001)
	=	0.347227	/	0.372239
	=	0.9328

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
	=	(237.524 - -19.858	-	503.466)	/	5241.035
	=	-0.046953

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.

Birkenstock Holding has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.

Birkenstock Holding Beneish M-Score Related Terms

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Birkenstock Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Birkenstock Holding PLC (NYSE:BIRK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

7PV:Germany

Address

1-2 Berkeley Square, London, GBR, W1J 6EA

Website

https://www.birkenstock-holding.com

Birkenstock Holding PLC is a company that manufactures and sells footbed-based products, including sandals, closed-toe silhouettes, and other products, such as skincare and accessories, for everyday, leisure, and work. It sells its products through two main channels: business-to-business (B2B) which comprises sales made to established third-party store networks, and direct-to-consumer (DTC) which comprises sales made on globally owned online stores through the Birkenstock.com domain and sales made in Birkenstock retail stores. The company's reportable segments are based on its regional hubs and include: the Americas which is also its key revenue-generating segment; Europe; and Australia, Japan, India, China, and the United Arab Emirates (APMA).