FMCQF (Fresenius Medical Care AG) Beneish M-Score : -2.75 (As of Dec. 15, 2024)

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What is Fresenius Medical Care AG 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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FMCQF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05 Med: -2.61 Max: -2.34
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Fresenius Medical Care AG was -2.34. The lowest was -3.05. And the median was -2.61.

Fresenius Medical Care AG Beneish M-Score Historical Data

The historical data trend for Fresenius Medical Care AG'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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Fresenius Medical Care AG Beneish M-Score Chart

Fresenius Medical Care AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.72

-3.05

-2.49

-2.59

-2.77

Fresenius Medical Care AG 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															-2.85	-2.77	-2.75	-2.53	-2.75

Competitive Comparison of Fresenius Medical Care AG's Beneish M-Score

For the Medical Care Facilities subindustry, Fresenius Medical Care AG'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 Medical Care AG's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where Fresenius Medical Care AG's Beneish M-Score falls into.

Fresenius Medical Care AG 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 Medical Care AG 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 * 0.9013

0.528 * 0.9827

0.404 * 1.2288

0.892 * 1.0078

0.115 * 0.5794

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0089

4.679 * -0.041658

0.327 * 0.9573

-2.71

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $3,600 Mil.
Revenue was 5283.019 + 5130.248 + 5135.35 + 5439.059 = $20,988 Mil.
Gross Profit was 1271.92 + 1255.113 + 1275.708 + 1471.107 = $5,274 Mil.
Total Current Assets was $8,980 Mil.
Total Assets was $36,083 Mil.
Property, Plant and Equipment(Net PPE) was $3,842 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,845 Mil.
Selling, General, & Admin. Expense(SGA) was $3,434 Mil.
Total Current Liabilities was $6,536 Mil.
Long-Term Debt & Capital Lease Obligation was $10,609 Mil.
Net Income was 236.404 + 201.292 + 77.129 + 205.013 = $720 Mil.
Non Operating Income was 45.505 + 35.522 + -125.509 + -223.78 = $-268 Mil.
Cash Flow from Operations was 1093.23 + 475.78 + 138.378 + 783.862 = $2,491 Mil.

Total Receivables was $3,964 Mil.
Revenue was 5267.876 + 5227.519 + 5036.403 + 5293.222 = $20,825 Mil.
Gross Profit was 1311.633 + 1296.858 + 1230.193 + 1303.786 = $5,142 Mil.
Total Current Assets was $9,663 Mil.
Total Assets was $38,031 Mil.
Property, Plant and Equipment(Net PPE) was $8,416 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,948 Mil.
Selling, General, & Admin. Expense(SGA) was $3,377 Mil.
Total Current Liabilities was $7,064 Mil.
Long-Term Debt & Capital Lease Obligation was $11,811 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)
	=	(3600.444 / 20987.676)	/	(3963.961 / 20825.02)
	=	0.17155	/	0.190346
	=	0.9013

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)
	=	(5142.47 / 20825.02)	/	(5273.848 / 20987.676)
	=	0.246937	/	0.251283
	=	0.9827

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 - (8980.022 + 3842.397) / 36083.241)	/	(1 - (9662.973 + 8415.658) / 38030.625)
	=	0.644643	/	0.52463
	=	1.2288

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
	=	20987.676	/	20825.02
	=	1.0078

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))
	=	(1947.501 / (1947.501 + 8415.658))	/	(1844.565 / (1844.565 + 3842.397))
	=	0.187925	/	0.32435
	=	0.5794

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)
	=	(3433.934 / 20987.676)	/	(3377.338 / 20825.02)
	=	0.163617	/	0.162177
	=	1.0089

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)
	=	((10608.515 + 6536.071) / 36083.241)	/	((11811.204 + 7064.387) / 38030.625)
	=	0.47514	/	0.496326
	=	0.9573

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
	=	(719.838 - -268.262	-	2491.25)	/	36083.241
	=	-0.041658

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 Medical Care AG has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.

Fresenius Medical Care AG Beneish M-Score Related Terms

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Fresenius Medical Care AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Fresenius Medical Care AG (OTCPK:FMCQF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

FMS:USA 1FME:Italy FMEd:UK 0H9X:UK FME:Germany FMEA:Germany FME:Germany FME:Germany FMEA:Germany FME:Germany FMSC34:Brazil FME:Austria

Address

Else-Kroener-Strasse 1, Bad Homburg, HE, DEU, 61352

Website

https://www.freseniusmedicalcare.com

Fresenius Medical Care is the largest dialysis company in the world, treating over 300,000 patients from roughly 3,750 clinics across the globe as of mid-2024. In addition to providing dialysis services, the firm is a leading supplier of dialysis products, including machines, dialyzers, and concentrates. Fresenius accounts for about 35% of the global dialysis products market and benefits from being the world's only fully integrated dialysis business. Services account for roughly 80% of firmwide revenue, including care coordination and ancillary operations, while products account for the other roughly 20%.