Applied Industrial Technologies (FRA:AT4) Beneish M-Score : -2.55 (As of Dec. 13, 2024)

View and export this data going back to 1984. Start your Free Trial

What is Applied Industrial Technologies 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:AT4' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03 Med: -2.48 Max: -2
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Applied Industrial Technologies was -2.00. The lowest was -3.03. And the median was -2.48.

Applied Industrial Technologies Beneish M-Score Historical Data

The historical data trend for Applied Industrial Technologies'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.

Applied Industrial Technologies Beneish M-Score Chart

Applied Industrial Technologies Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

Get a 7-Day Free Trial

-2.93

-2.43

-2.08

-2.39

-2.41

Applied Industrial Technologies 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															-2.46	-2.55	-2.59	-2.41	-2.55

Competitive Comparison of Applied Industrial Technologies's Beneish M-Score

For the Industrial Distribution subindustry, Applied Industrial Technologies'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.

Applied Industrial Technologies's Beneish M-Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Applied Industrial Technologies's Beneish M-Score falls into.

Applied Industrial Technologies 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 Applied Industrial Technologies 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 * 0.9667

0.528 * 0.9846

0.404 * 0.9561

0.892 * 0.9898

0.115 * 1.1644

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0282

4.679 * -0.019101

0.327 * 0.9048

-2.59

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €623 Mil.
Revenue was 990.149 + 1078.267 + 1054.679 + 987.749 = €4,111 Mil.
Gross Profit was 292.899 + 330.942 + 311.186 + 290.772 = €1,226 Mil.
Total Current Assets was €1,630 Mil.
Total Assets was €2,706 Mil.
Property, Plant and Equipment(Net PPE) was €238 Mil.
Depreciation, Depletion and Amortization(DDA) was €48 Mil.
Selling, General, & Admin. Expense(SGA) was €778 Mil.
Total Current Liabilities was €431 Mil.
Long-Term Debt & Capital Lease Obligation was €516 Mil.
Net Income was 82.949 + 96.143 + 89.44 + 83.656 = €352 Mil.
Non Operating Income was 2.055 + 0.89 + 1.61 + 2.681 = €7 Mil.
Cash Flow from Operations was 115.1 + 110.768 + 77.457 + 93.312 = €397 Mil.

Total Receivables was €651 Mil.
Revenue was 1026.191 + 1068.902 + 1057.321 + 1000.904 = €4,153 Mil.
Gross Profit was 304.602 + 312.49 + 311.132 + 291.229 = €1,219 Mil.
Total Current Assets was €1,541 Mil.
Total Assets was €2,577 Mil.
Property, Plant and Equipment(Net PPE) was €202 Mil.
Depreciation, Depletion and Amortization(DDA) was €50 Mil.
Selling, General, & Admin. Expense(SGA) was €764 Mil.
Total Current Liabilities was €437 Mil.
Long-Term Debt & Capital Lease Obligation was €559 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)
	=	(623.052 / 4110.844)	/	(651.142 / 4153.318)
	=	0.151563	/	0.156776
	=	0.9667

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)
	=	(1219.453 / 4153.318)	/	(1225.799 / 4110.844)
	=	0.293609	/	0.298187
	=	0.9846

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 - (1630.405 + 237.958) / 2705.893)	/	(1 - (1540.676 + 202.25) / 2577.229)
	=	0.309521	/	0.323721
	=	0.9561

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
	=	4110.844	/	4153.318
	=	0.9898

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))
	=	(49.524 / (49.524 + 202.25))	/	(48.369 / (48.369 + 237.958))
	=	0.1967	/	0.168929
	=	1.1644

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)
	=	(777.848 / 4110.844)	/	(764.36 / 4153.318)
	=	0.189219	/	0.184036
	=	1.0282

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)
	=	((515.631 + 430.948) / 2705.893)	/	((559.279 + 437.165) / 2577.229)
	=	0.349821	/	0.386634
	=	0.9048

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
	=	(352.188 - 7.236	-	396.637)	/	2705.893
	=	-0.019101

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.

Applied Industrial Technologies has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Applied Industrial Technologies Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Applied Industrial Technologies's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Applied Industrial Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Applied Industrial Technologies Inc (FRA:AT4) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AIT:USA 0HGR:UK AT4:Germany

Address

1 Applied Plaza, Cleveland, OH, USA, 44115

Website

https://www.applied.com

Applied Industrial Technologies Inc is a distributor of industrial products to the maintenance, repair, and operations market and the original equipment manufacturing industry. Further, the company provides engineering and design services for industrial and fluid power applications. The products include bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, safety products, oilfield supplies, and other industrial and maintenance supplies. The company's reportable segments are; Service Center Based Distribution which derives key revenue, and Engineered Solutions. Geographically, the company derives its key revenue from the United States and the rest from Canada and other countries.

Applied Industrial Technologies Headlines

No Headlines