Procter & Gamble Co (CHIX:PRGD) Beneish M-Score : -2.64 (As of Dec. 15, 2024)

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What is Procter & Gamble Co 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHIX:PRGd' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99 Med: -2.61 Max: -2.3
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Procter & Gamble Co was -2.30. The lowest was -2.99. And the median was -2.61.

Procter & Gamble Co Beneish M-Score Historical Data

The historical data trend for Procter & Gamble Co'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.

Procter & Gamble Co Beneish M-Score Chart

Procter & Gamble Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-2.87

-2.50

-2.45

-2.55

-2.59

Procter & Gamble Co 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															-2.55	-2.59	-2.56	-2.59	-2.64

Competitive Comparison of Procter & Gamble Co's Beneish M-Score

For the Household & Personal Products subindustry, Procter & Gamble Co'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.

Procter & Gamble Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Procter & Gamble Co's Beneish M-Score falls into.

Procter & Gamble Co 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 Procter & Gamble Co 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 * 0.9885

0.528 * 0.9544

0.404 * 0.9761

0.892 * 0.9882

0.115 * 0.9648

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0539

4.679 * -0.029026

0.327 * 0.9836

-2.68

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €5,689 Mil.
Revenue was 19585.037 + 19074.228 + 18579.4 + 19661.397 = €76,900 Mil.
Gross Profit was 10195.716 + 9460.936 + 9512.8 + 10359.349 = €39,529 Mil.
Total Current Assets was €24,732 Mil.
Total Assets was €113,960 Mil.
Property, Plant and Equipment(Net PPE) was €20,278 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,679 Mil.
Selling, General, & Admin. Expense(SGA) was €21,298 Mil.
Total Current Liabilities was €32,814 Mil.
Long-Term Debt & Capital Lease Obligation was €23,195 Mil.
Net Income was 3567.059 + 2914.273 + 3453.68 + 3180.156 = €13,115 Mil.
Non Operating Income was -499.154 + 91.042 + 239.2 + -1067.388 = €-1,236 Mil.
Cash Flow from Operations was 3876.102 + 5345.466 + 3760.96 + 4676.7 = €17,659 Mil.

Total Receivables was €5,823 Mil.
Revenue was 20493.127 + 18970.419 + 18743.512 + 19609.712 = €77,817 Mil.
Gross Profit was 10653.69 + 9174.62 + 9026.176 + 9322.944 = €38,177 Mil.
Total Current Assets was €23,369 Mil.
Total Assets was €114,812 Mil.
Property, Plant and Equipment(Net PPE) was €20,273 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,572 Mil.
Selling, General, & Admin. Expense(SGA) was €20,448 Mil.
Total Current Liabilities was €34,817 Mil.
Long-Term Debt & Capital Lease Obligation was €22,553 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)
	=	(5688.914 / 76900.062)	/	(5823.455 / 77816.77)
	=	0.073978	/	0.074835
	=	0.9885

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)
	=	(38177.43 / 77816.77)	/	(39528.801 / 76900.062)
	=	0.490607	/	0.514028
	=	0.9544

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 - (24731.549 + 20277.906) / 113960.282)	/	(1 - (23368.78 + 20272.932) / 114811.547)
	=	0.605043	/	0.619884
	=	0.9761

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
	=	76900.062	/	77816.77
	=	0.9882

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))
	=	(2572.172 / (2572.172 + 20272.932))	/	(2679.094 / (2679.094 + 20277.906))
	=	0.112592	/	0.116701
	=	0.9648

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)
	=	(21297.664 / 76900.062)	/	(20448.49 / 77816.77)
	=	0.276952	/	0.262777
	=	1.0539

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)
	=	((23195.344 + 32814.42) / 113960.282)	/	((22552.653 + 34817.046) / 114811.547)
	=	0.491485	/	0.499686
	=	0.9836

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
	=	(13115.168 - -1236.3	-	17659.228)	/	113960.282
	=	-0.029026

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.

Procter & Gamble Co has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Procter & Gamble Co Beneish M-Score Related Terms

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Procter & Gamble Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Procter & Gamble Co (CHIX:PRGd) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PG:USA PG:Peru PG:Mexico 1PG:Italy PRG:Germany PRG:Germany PRG:Germany PRG:Germany PG:Canada PGCO34:Brazil PG:Austria PG:Argentina

Address

One Procter and Gamble Plaza, Cincinnati, OH, USA, 45202

Website

https://us.pg.com

Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, generating more than $80 billion in annual sales. It operates with a lineup of leading brands, including more than 20 that generate north of $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. Sales outside its home turf represent more than half of the firm's consolidated total.

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