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Fresenius SE KGaA (CHIX:FRED) Beneish M-Score : -3.52 (As of Oct. 31, 2024)


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What is Fresenius SE KGaA 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 -3.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHIX:FREd' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Med: -2.59   Max: -1.55
Current: -3.52

During the past 13 years, the highest Beneish M-Score of Fresenius SE KGaA was -1.55. The lowest was -3.52. And the median was -2.59.


Fresenius SE KGaA Beneish M-Score Historical Data

The historical data trend for Fresenius SE KGaA'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.

Fresenius SE KGaA Beneish M-Score Chart

Fresenius SE KGaA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.60 -2.83 -2.59 -2.63 -3.52

Fresenius SE KGaA Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.55 -3.46 -3.52 -3.51 -3.52

Competitive Comparison of Fresenius SE KGaA's Beneish M-Score

For the Medical Care Facilities subindustry, Fresenius SE KGaA'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.


Fresenius SE KGaA's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Fresenius SE KGaA's Beneish M-Score distribution charts can be found below:

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



Fresenius SE KGaA 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 Fresenius SE KGaA 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 * 0.4881+0.528 * 1.0312+0.404 * 0.9882+0.892 * 1.0235+0.115 * 0.1128
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.951+4.679 * -0.11307-0.327 * 0.9303
=-3.52

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was €3,852 Mil.
Revenue was 5460 + 5704 + 5678 + 5518 = €22,360 Mil.
Gross Profit was 1223 + 1406 + 1297 + 1272 = €5,198 Mil.
Total Current Assets was €11,943 Mil.
Total Assets was €43,513 Mil.
Property, Plant and Equipment(Net PPE) was €9,863 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,579 Mil.
Selling, General, & Admin. Expense(SGA) was €3,176 Mil.
Total Current Liabilities was €9,246 Mil.
Long-Term Debt & Capital Lease Obligation was €11,530 Mil.
Net Income was -373 + 278 + -614 + -406 = €-1,115 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 708 + 2 + 1687 + 1408 = €3,805 Mil.
Total Receivables was €7,710 Mil.
Revenue was 5245 + 5546 + 5670 + 5386 = €21,847 Mil.
Gross Profit was 1104 + 1358 + 1430 + 1345 = €5,237 Mil.
Total Current Assets was €19,305 Mil.
Total Assets was €76,413 Mil.
Property, Plant and Equipment(Net PPE) was €18,535 Mil.
Depreciation, Depletion and Amortization(DDA) was €293 Mil.
Selling, General, & Admin. Expense(SGA) was €3,263 Mil.
Total Current Liabilities was €16,057 Mil.
Long-Term Debt & Capital Lease Obligation was €23,163 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)
=(3852 / 22360) / (7710 / 21847)
=0.172272 / 0.352909
=0.4881

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)
=(5237 / 21847) / (5198 / 22360)
=0.239713 / 0.232469
=1.0312

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 - (11943 + 9863) / 43513) / (1 - (19305 + 18535) / 76413)
=0.498862 / 0.504796
=0.9882

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
=22360 / 21847
=1.0235

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))
=(293 / (293 + 18535)) / (1579 / (1579 + 9863))
=0.015562 / 0.138
=0.1128

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)
=(3176 / 22360) / (3263 / 21847)
=0.142039 / 0.149357
=0.951

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)
=((11530 + 9246) / 43513) / ((23163 + 16057) / 76413)
=0.477467 / 0.513263
=0.9303

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
=(-1115 - 0 - 3805) / 43513
=-0.11307

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.

Fresenius SE KGaA has a M-score of -3.52 suggests that the company is unlikely to be a manipulator.


Fresenius SE KGaA Beneish M-Score Related Terms

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Fresenius SE KGaA Business Description

Address
Else-Kroener-Strasse 1, Bad Homburg, HE, DEU, 61352
Fresenius SE is a healthcare holding company based in Germany. The company owns a minority stake in dialysis service provider and equipment manufacturer Fresenius Medical Care. The Kabi segment manufactures intravenous drugs, nutrition products, infusion and transfusion therapies, and related pumps. The Helios segment operates private hospitals primarily in Germany and Spain. Vamed provides a variety of services such as healthcare facility construction and operation management, including post-acute care rehabilitation.

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