Medtronic (BUE:MDT) Beneish M-Score : -2.55 (As of Apr. 26, 2024)

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What is Medtronic 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BUE:MDT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82 Med: -2.55 Max: -1.45
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Medtronic was -1.45. The lowest was -2.82. And the median was -2.55.

Medtronic Beneish M-Score Historical Data

The historical data trend for Medtronic'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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Medtronic Beneish M-Score Chart

Medtronic Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Beneish M-Score

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-2.57

-2.82

-2.44

-2.60

-2.51

Medtronic Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Beneish M-Score	Get a 7-Day Free Trial															-2.52	-2.51	-2.51	-2.47	-2.55

Competitive Comparison of Medtronic's Beneish M-Score

For the Medical Devices subindustry, Medtronic'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.

Medtronic's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Medtronic's Beneish M-Score distribution charts can be found below:

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

Medtronic 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 Medtronic 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 * 1.5567

0.528 * 1.0111

0.404 * 1.0224

0.892 * 2.977

0.115 * 1.551

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9774

4.679 * -0.016559

0.327 * 0.9603

-0.19

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was ARS4,824,830 Mil.
Revenue was 6539551.92 + 2794399.958 + 1977103.488 + 1511173.381 = ARS12,822,229 Mil.
Gross Profit was 4290444.065 + 1828049.973 + 1302495.858 + 984340.671 = ARS8,405,331 Mil.
Total Current Assets was ARS18,200,634 Mil.
Total Assets was ARS73,436,363 Mil.
Property, Plant and Equipment(Net PPE) was ARS4,719,731 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,052,467 Mil.
Selling, General, & Admin. Expense(SGA) was ARS4,234,481 Mil.
Total Current Liabilities was ARS7,917,151 Mil.
Long-Term Debt & Capital Lease Obligation was ARS19,526,492 Mil.
Net Income was 1068770.879 + 318149.995 + 203049.709 + 208504.788 = ARS1,798,475 Mil.
Non Operating Income was 126926.647 + 17150 + -4620.6 + -16093.245 = ARS123,363 Mil.
Cash Flow from Operations was 2000105.26 + 231349.997 + 224612.51 + 435048.159 = ARS2,891,116 Mil.

Total Receivables was ARS1,041,109 Mil.
Revenue was 1366511.026 + 1117346.334 + 924323.418 + 898849.706 = ARS4,307,030 Mil.
Gross Profit was 890964.481 + 743915.489 + 608817.012 + 610937.777 = ARS2,854,635 Mil.
Total Current Assets was ARS4,485,594 Mil.
Total Assets was ARS16,647,489 Mil.
Property, Plant and Equipment(Net PPE) was ARS961,527 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS379,143 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,455,339 Mil.
Total Current Liabilities was ARS2,550,514 Mil.
Long-Term Debt & Capital Lease Obligation was ARS3,927,813 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)
	=	(4824829.504 / 12822228.747)	/	(1041109.151 / 4307030.484)
	=	0.376286	/	0.241723
	=	1.5567

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)
	=	(2854634.759 / 4307030.484)	/	(8405330.567 / 12822228.747)
	=	0.662785	/	0.655528
	=	1.0111

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 - (18200634.488 + 4719731.006) / 73436362.738)	/	(1 - (4485594.105 + 961527.17) / 16647489.178)
	=	0.687888	/	0.672796
	=	1.0224

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
	=	12822228.747	/	4307030.484
	=	2.977

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))
	=	(379143.139 / (379143.139 + 961527.17))	/	(1052466.81 / (1052466.81 + 4719731.006))
	=	0.282801	/	0.182334
	=	1.551

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)
	=	(4234480.502 / 12822228.747)	/	(1455339.089 / 4307030.484)
	=	0.330245	/	0.337898
	=	0.9774

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)
	=	((19526492.461 + 7917150.692) / 73436362.738)	/	((3927812.848 + 2550514.043) / 16647489.178)
	=	0.373706	/	0.389147
	=	0.9603

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
	=	(1798475.371 - 123362.802	-	2891115.926)	/	73436362.738
	=	-0.016559

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.

Medtronic has a M-score of -0.19 signals that the company is likely to be a manipulator.

Medtronic Beneish M-Score Related Terms

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Medtronic (BUE:MDT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Medtronic PLC (BUE:MDT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MDT:USA MDTN:Mexico 1MDT:Italy 2M6:Germany 2M6:Germany 2M6:Germany 2M6:Germany MDTC34:Brazil MDT:Austria

Address

Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2

Website

https://www.medtronic.com

One of the largest medical-device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for roughly 50% of the company's total sales.