LyondellBasell Industries NV (BSP:L1YB34) Beneish M-Score : -2.70 (As of May. 01, 2024)

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What is LyondellBasell Industries NV 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:L1YB34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46 Med: -2.74 Max: -1.72
Current: -2.7

During the past 13 years, the highest Beneish M-Score of LyondellBasell Industries NV was -1.72. The lowest was -3.46. And the median was -2.74.

LyondellBasell Industries NV Beneish M-Score Historical Data

The historical data trend for LyondellBasell Industries NV'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.

* Premium members only.

LyondellBasell Industries NV Beneish M-Score Chart

LyondellBasell Industries NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.04

-2.11

-2.51

-2.68

-2.87

LyondellBasell Industries NV Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.72	-2.88	-2.88	-2.87	-2.70

Competitive Comparison of LyondellBasell Industries NV's Beneish M-Score

For the Specialty Chemicals subindustry, LyondellBasell Industries NV'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.

LyondellBasell Industries NV's Beneish M-Score Distribution in the Chemicals Industry

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

* The bar in red indicates where LyondellBasell Industries NV's Beneish M-Score falls into.

LyondellBasell Industries NV 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 LyondellBasell Industries NV 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 * 1.26

0.528 * 1.0117

0.404 * 0.9322

0.892 * 0.8152

0.115 * 0.9113

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3599

4.679 * -0.049346

0.327 * 0.983

-2.72

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$20,870 Mil.
Revenue was 49424.515 + 48650.114 + 52473.688 + 50022.232 = R$200,571 Mil.
Gross Profit was 5786.528 + 4845.902 + 7151.238 + 6979.621 = R$24,763 Mil.
Total Current Assets was R$64,115 Mil.
Total Assets was R$182,380 Mil.
Property, Plant and Equipment(Net PPE) was R$84,721 Mil.
Depreciation, Depletion and Amortization(DDA) was R$7,390 Mil.
Selling, General, & Admin. Expense(SGA) was R$7,860 Mil.
Total Current Liabilities was R$30,312 Mil.
Long-Term Debt & Capital Lease Obligation was R$61,764 Mil.
Net Income was 2345.486 + 896.663 + 3679.332 + 3465.542 = R$10,387 Mil.
Non Operating Income was -109.556 + -1455.241 + -246.935 + -92.22 = R$-1,904 Mil.
Cash Flow from Operations was -567.697 + 7369.299 + 8227.874 + 6261.273 = R$21,291 Mil.

Total Receivables was R$20,319 Mil.
Revenue was 53372.524 + 53534.552 + 64234.1 + 74897.773 = R$246,039 Mil.
Gross Profit was 7203.494 + 4458.59 + 6093.063 + 12977.637 = R$30,733 Mil.
Total Current Assets was R$62,628 Mil.
Total Assets was R$188,838 Mil.
Property, Plant and Equipment(Net PPE) was R$88,952 Mil.
Depreciation, Depletion and Amortization(DDA) was R$7,017 Mil.
Selling, General, & Admin. Expense(SGA) was R$7,091 Mil.
Total Current Liabilities was R$33,924 Mil.
Long-Term Debt & Capital Lease Obligation was R$63,066 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)
	=	(20870.342 / 200570.549)	/	(20318.749 / 246038.949)
	=	0.104055	/	0.082583
	=	1.26

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)
	=	(30732.784 / 246038.949)	/	(24763.289 / 200570.549)
	=	0.12491	/	0.123464
	=	1.0117

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 - (64114.925 + 84721.337) / 182380.195)	/	(1 - (62628.206 + 88952.471) / 188837.793)
	=	0.183923	/	0.197297
	=	0.9322

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
	=	200570.549	/	246038.949
	=	0.8152

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))
	=	(7016.536 / (7016.536 + 88952.471))	/	(7389.851 / (7389.851 + 84721.337))
	=	0.073113	/	0.080228
	=	0.9113

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)
	=	(7860.456 / 200570.549)	/	(7090.676 / 246038.949)
	=	0.03919	/	0.028819
	=	1.3599

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)
	=	((61764.459 + 30312.043) / 182380.195)	/	((63065.729 + 33923.612) / 188837.793)
	=	0.50486	/	0.513612
	=	0.983

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
	=	(10387.023 - -1903.952	-	21290.749)	/	182380.195
	=	-0.049346

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.

LyondellBasell Industries NV has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

LyondellBasell Industries NV Beneish M-Score Related Terms

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LyondellBasell Industries NV (BSP:L1YB34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » LyondellBasell Industries NV (BSP:L1YB34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LYB:USA DLY:Germany DLY:Germany

Address

Delftseplein 27E, 4th Floor, Rotterdam, ZH, NLD, 3013 AA

Website

https://www.lyondellbasell.com

LyondellBasell is a petrochemical producer with operations in the United States, Europe, and Asia. The company is the world's largest producer of polypropylene and is also a major producer of polyethylene and propylene oxide. Its chemicals are used in various consumer and industrial end products. Well over half of LyondellBasell's production come from its North American operations.

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