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Clean Harbors (Clean Harbors) Beneish M-Score : -2.61 (As of May. 05, 2024)


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What is Clean Harbors 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CLH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Med: -2.78   Max: -1.88
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Clean Harbors was -1.88. The lowest was -3.15. And the median was -2.78.


Clean Harbors Beneish M-Score Historical Data

The historical data trend for Clean Harbors'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.

Clean Harbors Beneish M-Score Chart

Clean Harbors 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 -2.80 -2.89 -2.30 -2.41 -2.71

Clean Harbors 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 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 -2.56 -2.69 -2.72 -2.71 -2.61

Competitive Comparison of Clean Harbors's Beneish M-Score

For the Waste Management subindustry, Clean Harbors'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.


Clean Harbors's Beneish M-Score Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Clean Harbors's Beneish M-Score distribution charts can be found below:

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



Clean Harbors 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 Clean Harbors 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 * 1.0599+0.528 * 1.0205+0.404 * 1.0138+0.892 * 1.0327+0.115 * 1.0603
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0335+4.679 * -0.050483-0.327 * 1.0003
=-2.61

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $1,205 Mil.
Revenue was 1376.695 + 1338.169 + 1365.696 + 1397.9 = $5,478 Mil.
Gross Profit was 405.625 + 415.022 + 421.745 + 450.388 = $1,693 Mil.
Total Current Assets was $2,106 Mil.
Total Assets was $6,940 Mil.
Property, Plant and Equipment(Net PPE) was $2,537 Mil.
Depreciation, Depletion and Amortization(DDA) was $376 Mil.
Selling, General, & Admin. Expense(SGA) was $686 Mil.
Total Current Liabilities was $1,018 Mil.
Long-Term Debt & Capital Lease Obligation was $2,924 Mil.
Net Income was 69.832 + 98.349 + 91.34 + 115.766 = $375 Mil.
Non Operating Income was -1.141 + 2.63 + 0.334 + -1.283 = $1 Mil.
Cash Flow from Operations was 18.549 + 278.86 + 220.119 + 207.565 = $725 Mil.
Total Receivables was $1,101 Mil.
Revenue was 1307.387 + 1278.098 + 1363.086 + 1356.312 = $5,305 Mil.
Gross Profit was 375.873 + 386.674 + 452.438 + 457.843 = $1,673 Mil.
Total Current Assets was $1,903 Mil.
Total Assets was $6,084 Mil.
Property, Plant and Equipment(Net PPE) was $2,195 Mil.
Depreciation, Depletion and Amortization(DDA) was $348 Mil.
Selling, General, & Admin. Expense(SGA) was $643 Mil.
Total Current Liabilities was $927 Mil.
Long-Term Debt & Capital Lease Obligation was $2,528 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)
=(1205.355 / 5478.46) / (1101.166 / 5304.883)
=0.220017 / 0.207576
=1.0599

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)
=(1672.828 / 5304.883) / (1692.78 / 5478.46)
=0.315337 / 0.308988
=1.0205

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 - (2105.796 + 2537.061) / 6939.823) / (1 - (1903.047 + 2194.657) / 6084.008)
=0.330983 / 0.32648
=1.0138

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
=5478.46 / 5304.883
=1.0327

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))
=(348.054 / (348.054 + 2194.657)) / (376.068 / (376.068 + 2537.061))
=0.136883 / 0.129094
=1.0603

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)
=(686.276 / 5478.46) / (642.971 / 5304.883)
=0.125268 / 0.121204
=1.0335

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)
=((2924.168 + 1017.523) / 6939.823) / ((2527.728 + 926.837) / 6084.008)
=0.567981 / 0.567811
=1.0003

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
=(375.287 - 0.54 - 725.093) / 6939.823
=-0.050483

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.

Clean Harbors has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


Clean Harbors Beneish M-Score Related Terms

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Clean Harbors (Clean Harbors) Business Description

Traded in Other Exchanges
Address
42 Longwater Drive, Norwell, MA, USA, 02061-9149
Clean Harbors Inc is an environmental and industrial services provider. It provides parts cleaning and related environmental services to commercial, industrial, and automotive customers. Its business segments are Environmental Services and Safety-Kleen Sustainability Solutions. The company generates the majority of its revenues from the Environmental Services segment.
Executives
Alan S Mckim director, officer: Chrmn. of Bd., Pres.and CEO
Robert W. Harrison officer: EVP, EHS 42 LONGWATER DRIVE, NORWELL MA 02061
Eric W Gerstenberg officer: Chief Operating Officer 24 MACFARLANE DRIVE, KINGSTON MA 02364
Eric J. Dugas officer: VP, Corp. Contr and CAO C/O CLEAN HARBORS, INC., 42 LONGWATER DRIVE, NORWELL MA 02061
Robert Speights officer: EVP (CHESI) C/O CLEAN HARBORS ENVIRONMENTAL SERVICES, 42 LONGWATER DRIVE, NORWELL MA 02061
George L Curtis officer: Exec. Vice President (CHESI)
Rebecca Underwood officer: President & EVP Facilities 42 LONGWATER DRIVE, NORWELL MA 02061
Loan Nguyen Mansy officer: President Env Sales & Service C/O HUDSON TECHNOLOGIES, INC., 300 TICE BOULEVARD, SUITE 290, WOODCLIFF LAKE NJ 07677
John T Preston director C/O MOLTEN METAL TECHNOLOTY INC, 400-2 TOTTEN POND ROAD, WALTHAM MA 02154
Andrea Robertson director 129 SHELTER ROCK ROAD, STAMFORD CT 06903
Michael Louis Battles officer: SVP & CAO 45 WILLIAM STREET, WELLESLEY MA 02481
Sharon M. Gabriel officer: EVP/CIO (CHESI) 42 LONGWATER DRIVE, NORWELL MA 02061
Brian P Weber officer: EVP (CHESI) 88 PINE STREET, WALPOLE MA 02081
Eugene G Banucci director
Melkeya Mcduffie officer: EVP, Human Resources Officer C/O CLEAN HARBORS INC., 42 LONGWATER DRIVE, NORWELL MA 02061