MillerKnoll (FRA:MHR) Beneish M-Score : -3.00 (As of Apr. 29, 2024)

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What is MillerKnoll 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 -3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:MHR' s Beneish M-Score Range Over the Past 10 Years
Min: -3 Med: -2.62 Max: -1.7
Current: -3

During the past 13 years, the highest Beneish M-Score of MillerKnoll was -1.70. The lowest was -3.00. And the median was -2.62.

MillerKnoll Beneish M-Score Historical Data

The historical data trend for MillerKnoll'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.

MillerKnoll Beneish M-Score Chart

MillerKnoll Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Beneish M-Score

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-2.46

-2.88

-2.71

-1.70

-2.53

MillerKnoll Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-2.36	-2.53	-2.86	-2.93	-3.00

Competitive Comparison of MillerKnoll's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, MillerKnoll'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.

MillerKnoll's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, MillerKnoll's Beneish M-Score distribution charts can be found below:

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

MillerKnoll 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 MillerKnoll 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 * 0.97

0.528 * 0.8958

0.404 * 1.0504

0.892 * 0.8368

0.115 * 1.0085

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.119

4.679 * -0.061862

0.327 * 0.9869

-2.99

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was €295 Mil.
Revenue was 808.622 + 877.338 + 841.531 + 880.164 = €3,408 Mil.
Gross Profit was 312.399 + 343.728 + 328.378 + 326.324 = €1,311 Mil.
Total Current Assets was €1,004 Mil.
Total Assets was €3,796 Mil.
Property, Plant and Equipment(Net PPE) was €819 Mil.
Depreciation, Depletion and Amortization(DDA) was €139 Mil.
Selling, General, & Admin. Expense(SGA) was €1,036 Mil.
Total Current Liabilities was €631 Mil.
Long-Term Debt & Capital Lease Obligation was €1,525 Mil.
Net Income was 20.579 + 30.954 + 15.314 + -0.092 = €67 Mil.
Non Operating Income was 0.093 + 0.554 + -6.786 + -29.716 = €-36 Mil.
Cash Flow from Operations was 56.083 + 76.23 + 120.035 + 85.1 = €337 Mil.

Total Receivables was €364 Mil.
Revenue was 919.71 + 1046.629 + 1064.776 + 1041.073 = €4,072 Mil.
Gross Profit was 313.45 + 360.616 + 367.263 + 361.845 = €1,403 Mil.
Total Current Assets was €1,192 Mil.
Total Assets was €4,094 Mil.
Property, Plant and Equipment(Net PPE) was €876 Mil.
Depreciation, Depletion and Amortization(DDA) was €150 Mil.
Selling, General, & Admin. Expense(SGA) was €1,106 Mil.
Total Current Liabilities was €685 Mil.
Long-Term Debt & Capital Lease Obligation was €1,671 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)
	=	(295.435 / 3407.655)	/	(363.98 / 4072.188)
	=	0.086697	/	0.089382
	=	0.97

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)
	=	(1403.174 / 4072.188)	/	(1310.829 / 3407.655)
	=	0.344575	/	0.384672
	=	0.8958

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 - (1004.312 + 818.541) / 3796.158)	/	(1 - (1191.877 + 875.905) / 4093.535)
	=	0.519816	/	0.494866
	=	1.0504

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
	=	3407.655	/	4072.188
	=	0.8368

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))
	=	(150.264 / (150.264 + 875.905))	/	(139.033 / (139.033 + 818.541))
	=	0.146432	/	0.145193
	=	1.0085

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)
	=	(1035.612 / 3407.655)	/	(1105.939 / 4072.188)
	=	0.303908	/	0.271583
	=	1.119

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)
	=	((1525.471 + 630.823) / 3796.158)	/	((1671.206 + 684.809) / 4093.535)
	=	0.56802	/	0.575545
	=	0.9869

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
	=	(66.755 - -35.855	-	337.448)	/	3796.158
	=	-0.061862

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.

MillerKnoll has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.

MillerKnoll Beneish M-Score Related Terms

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MillerKnoll (FRA:MHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » MillerKnoll Inc (FRA:MHR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MLKN:USA

Address

855 East Main Avenue, P.O. Box 302, Zeeland, MI, USA, 49464

Website

https://www.millerknoll.com

MillerKnoll Inc, formerly Herman Miller Inc researches, designs, manufactures, sells, and distributes interior furnishings across the globe. The Company has three reportable segments: Americas Contract , International Contract & Specialty International & Specialty and Global Retail. The company's products are sold through a variety of sources, including owned and independent contract furniture dealers, direct customer sales, owned and independent retailers, direct-mail catalogs, and the company's online stores. The independent retailer division generates the majority of the firm's overall sales.

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