AutoNation (FRA:RWI) Beneish M-Score : -2.28 (As of Apr. 05, 2025)

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What is AutoNation 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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:RWI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89 Med: -2.48 Max: -2.2
Current: -2.28

During the past 13 years, the highest Beneish M-Score of AutoNation was -2.20. The lowest was -2.89. And the median was -2.48.

AutoNation Beneish M-Score Historical Data

The historical data trend for AutoNation'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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AutoNation Beneish M-Score Chart

AutoNation Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.89

-2.66

-2.46

-2.20

-2.28

AutoNation Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.20	-2.16	-2.35	-2.19	-2.28

Competitive Comparison of AutoNation's Beneish M-Score

For the Auto & Truck Dealerships subindustry, AutoNation'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.

AutoNation's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, AutoNation's Beneish M-Score distribution charts can be found below:

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

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AutoNation 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 AutoNation 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 * 1.0755

0.528 * 1.0657

0.404 * 1.0881

0.892 * 0.9924

0.115 * 0.9575

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0097

4.679 * 0.024625

0.327 * 0.9963

-2.24

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €1,018 Mil.
Revenue was 6888.606 + 5934.076 + 6020.292 + 5966.844 = €24,810 Mil.
Gross Profit was 1185.728 + 1065.703 + 1080.52 + 1102.068 = €4,434 Mil.
Total Current Assets was €4,487 Mil.
Total Assets was €12,417 Mil.
Property, Plant and Equipment(Net PPE) was €3,995 Mil.
Depreciation, Depletion and Amortization(DDA) was €223 Mil.
Selling, General, & Admin. Expense(SGA) was €3,024 Mil.
Total Current Liabilities was €6,028 Mil.
Long-Term Debt & Capital Lease Obligation was €3,599 Mil.
Net Income was 177.726 + 167.406 + 120.956 + 174.892 = €641 Mil.
Non Operating Income was 31.42 + 1.892 + -0.093 + 6.44 = €40 Mil.
Cash Flow from Operations was 143.059 + -63.07 + -55.368 + 270.94 = €296 Mil.

Total Receivables was €954 Mil.
Revenue was 6205.706 + 6458.46 + 6359.562 + 5976.386 = €25,000 Mil.
Gross Profit was 1114.338 + 1213.04 + 1232.482 + 1201.498 = €4,761 Mil.
Total Current Assets was €3,949 Mil.
Total Assets was €10,986 Mil.
Property, Plant and Equipment(Net PPE) was €3,836 Mil.
Depreciation, Depletion and Amortization(DDA) was €205 Mil.
Selling, General, & Admin. Expense(SGA) was €3,018 Mil.
Total Current Liabilities was €5,119 Mil.
Long-Term Debt & Capital Lease Obligation was €3,430 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)
	=	(1018.317 / 24809.818)	/	(954.047 / 25000.114)
	=	0.041045	/	0.038162
	=	1.0755

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)
	=	(4761.358 / 25000.114)	/	(4434.019 / 24809.818)
	=	0.190453	/	0.17872
	=	1.0657

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 - (4486.59 + 3994.765) / 12416.624)	/	(1 - (3949.427 + 3836.453) / 10985.66)
	=	0.316936	/	0.291269
	=	1.0881

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
	=	24809.818	/	25000.114
	=	0.9924

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))
	=	(204.538 / (204.538 + 3836.453))	/	(222.96 / (222.96 + 3994.765))
	=	0.050616	/	0.052863
	=	0.9575

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)
	=	(3023.985 / 24809.818)	/	(3017.934 / 25000.114)
	=	0.121887	/	0.120717
	=	1.0097

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)
	=	((3598.631 + 6028.151) / 12416.624)	/	((3430.222 + 5119.152) / 10985.66)
	=	0.775314	/	0.77823
	=	0.9963

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
	=	(640.98 - 39.659	-	295.561)	/	12416.624
	=	0.024625

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.

AutoNation has a M-score of -2.24 suggests that the company is unlikely to be a manipulator.

AutoNation Beneish M-Score Related Terms

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AutoNation Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » AutoNation Inc (FRA:RWI) » Definitions » Beneish M-Score

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AN:USA

Address

200 South West 1st Avenue, Fort Lauderdale, FL, USA, 33301

Website

https://www.autonation.com

AutoNation is the second-largest automotive dealer in the United States, with 2024 revenue of about $27 billion and over 240 dealerships, plus 52 collision centers. The firm also has 26 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) divested its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

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