Zep Beneish M-Score Historical Data
The historical data trend for Zep'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.
Zep Beneish M-Score Chart
|
Zep Annual Data
|
|
Trend |
Aug05 |
Aug06 |
Aug07 |
Aug08 |
Aug09 |
Aug10 |
Aug11 |
Aug12 |
Aug13 |
Aug14 |
| Beneish M-Score |
|
Get a 7-Day Free Trial
|
|
|
-2.45 |
-2.44 |
-2.51 |
-2.60 |
-2.67 |
|
Zep Quarterly Data
|
|
May10 |
Aug10 |
Nov10 |
Feb11 |
May11 |
Aug11 |
Nov11 |
Feb12 |
May12 |
Aug12 |
Nov12 |
Feb13 |
May13 |
Aug13 |
Nov13 |
Feb14 |
May14 |
Aug14 |
Nov14 |
Feb15 |
| Beneish M-Score |
Get a 7-Day Free Trial
|
|
|
|
|
|
|
|
|
|
|
|
|
-2.85 |
-2.70 |
-2.67 |
-2.43 |
-2.51 |
Competitive Comparison of Zep's Beneish M-Score
For the Specialty Chemicals subindustry, Zep'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.
Zep's Beneish M-Score Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Zep's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Zep's Beneish M-Score falls into.
Zep 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 Zep 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 * 1.2272 | + | 0.528 * 1.0198 | + | 0.404 * 0.9593 | + | 0.892 * 1.0672 | + | 0.115 * 1.0243 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9983 | + | 4.679 * 0.000195 | - | 0.327 * 0.9786 |
| = | -2.21 |
* 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.
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) |
| = | (92.65 / 552.447) | / | (70.745 / 517.684) |
| = | 0.167708 | / | 0.136657 |
| | = | 1.2272 |
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) |
| = | (243.859 / 517.684) | / | (255.18 / 552.447) |
| = | 0.471058 | / | 0.461909 |
| | = | 1.0198 |
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 - (187.991 + 64.27) / 471.648) | / | (1 - (146.244 + 59.288) / 399.011) |
| = | 0.46515 | / | 0.484896 |
| | = | 0.9593 |
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 |
| = | 552.447 | / | 517.684 |
| | = | 1.0672 |
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)) |
| = | (16.394 / (16.394 + 59.288)) | / | (17.237 / (17.237 + 64.27)) |
| = | 0.216617 | / | 0.211479 |
| | = | 1.0243 |
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) |
| = | (230.846 / 552.447) | / | (216.693 / 517.684) |
| = | 0.417861 | / | 0.418582 |
| | = | 0.9983 |
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) |
| = | ((167.783 + 106.652) / 471.648) | / | ((139.753 + 97.505) / 399.011) |
| = | 0.581864 | / | 0.594615 |
| | = | 0.9786 |
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 |
| = | (7.105 - 5.637 | - | 1.376) | / | 471.648 |
| | = | 0.000195 |
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.
Zep has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.
Zep (FRA:14Z) Business Description
Traded in Other Exchanges
N/A
Address
Zep Inc. was founded in 1937. It is a producer, marketer, and service provider of a range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer end-markets. Zeps product portfolio includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest and weed control products. It continually refreshes its product portfolio and service offerings. Zep reaches its customers through an experienced, international organization of sales representatives supported by highly skilled marketing, research and development and technical services teams, who collectively provide creative solutions for its customers' diverse cleaning and maintenance needs by utilizing their product expertise and providing customized value added services that it distinguish Zep among its competitors. Through its direct sales organization, Zep provides convenient, highly effective cleaning and maintenance solutions to customers in a broad array of commercial, industrial, and institutional end-markets, including transportation, food processing and service, manufacturing, government, and housekeeping. These customers include government entities and businesses ranging from small sole proprietorships to large corporations. It sells its products to customers mainly in the United States, Canada and Western Europe. Zep markes these products and services under well recognized and established brand names, such as Zep , Zep Commercial, Zep Professional, Enforcer, and Selig. Zep is its flagship brand and represents largest portfolio of cleaning and maintenance solutions for commercial, industrial, and institutional customers needing highly effective product solutions and professional technical support. Zep Commercial provides professional cleaning and plumbing chemical products targeted to contractors and small business owners and are currently sold through The Home Depot, HD Supply and other retailers. Zep Professional was introduced in fiscal year 2009 and represents its portfolio of cleaning and maintenance solutions that are offered to customers in the commercial, industrial, and institutional end-markets who prefer to acquire product through the distribution channel. Selig offers a limited assortment of cleaning solutions targeted to commercial, industrial and institutional customers. It produces a range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer customers. Zeps commercial, industrial, and institutional customers include government entities and businesses ranging from small sole proprietorships to large corporations as well as distributors. Its sales and service organization covers the United States, Canada, Italy, Belgium, Luxemburg, the Netherlands and certain other smaller markets. It manufactures products at six facilities located in the United States, Canada, the Netherlands, and Italy.The key raw materi
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:14Z has been successfully added to your