Lincoln Electric Holdings Beneish M-Score Historical Data
The historical data trend for Lincoln Electric Holdings'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.
Lincoln Electric Holdings Beneish M-Score Chart
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Lincoln Electric Holdings Annual Data
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Trend |
Dec14 |
Dec15 |
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Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.68 |
-2.70 |
-2.26 |
-2.10 |
-2.68 |
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Lincoln Electric Holdings Quarterly Data
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Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
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Sep21 |
Dec21 |
Mar22 |
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Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
| Beneish M-Score |
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-2.52 |
-2.68 |
-2.75 |
-2.69 |
-2.67 |
Competitive Comparison of Lincoln Electric Holdings's Beneish M-Score
For the Tools & Accessories subindustry, Lincoln Electric Holdings'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.
Lincoln Electric Holdings's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's Beneish M-Score falls into.
Lincoln Electric Holdings 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 Lincoln Electric Holdings 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 * 0.9662 | + | 0.528 * 0.9462 | + | 0.404 * 1.0706 | + | 0.892 * 0.9953 | + | 0.115 * 1.0535 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0709 | + | 4.679 * -0.031016 | - | 0.327 * 0.9983 |
| = | -2.67 |
* 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.
| This Year (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was $517 Mil.
Revenue was 983.759 + 1021.683 + 981.197 + 1058.514 = $4,045 Mil.
Gross Profit was 352.078 + 383.813 + 368.399 + 371.03 = $1,475 Mil.
Total Current Assets was $1,757 Mil.
Total Assets was $3,665 Mil.
Property, Plant and Equipment(Net PPE) was $624 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General, & Admin. Expense(SGA) was $782 Mil.
Total Current Liabilities was $951 Mil.
Long-Term Debt & Capital Lease Obligation was $1,151 Mil.
Net Income was 100.756 + 101.708 + 123.415 + 156.643 = $483 Mil.
Non Operating Income was -21.871 + -28.043 + -2.343 + 23.593 = $-29 Mil.
Cash Flow from Operations was 199.201 + 170.687 + 133.294 + 121.662 = $625 Mil.
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Total Receivables was $538 Mil.
Revenue was 1033.214 + 1060.565 + 1039.343 + 930.934 = $4,064 Mil.
Gross Profit was 365.63 + 373.428 + 355.357 + 307.984 = $1,402 Mil.
Total Current Assets was $1,672 Mil.
Total Assets was $3,326 Mil.
Property, Plant and Equipment(Net PPE) was $566 Mil.
Depreciation, Depletion and Amortization(DDA) was $84 Mil.
Selling, General, & Admin. Expense(SGA) was $734 Mil.
Total Current Liabilities was $808 Mil.
Long-Term Debt & Capital Lease Obligation was $1,103 Mil.
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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) |
| = | (517.035 / 4045.153) | / | (537.637 / 4064.056) |
| = | 0.127816 | / | 0.132291 |
| | = | 0.9662 |
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) |
| = | (1402.399 / 4064.056) | / | (1475.32 / 4045.153) |
| = | 0.345074 | / | 0.364713 |
| | = | 0.9462 |
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 - (1757.101 + 624.403) / 3664.545) | / | (1 - (1672.294 + 565.875) / 3325.895) |
| = | 0.350123 | / | 0.327048 |
| | = | 1.0706 |
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 |
| = | 4045.153 | / | 4064.056 |
| | = | 0.9953 |
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)) |
| = | (83.751 / (83.751 + 565.875)) | / | (87.064 / (87.064 + 624.403)) |
| = | 0.128922 | / | 0.122373 |
| | = | 1.0535 |
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) |
| = | (782.454 / 4045.153) | / | (734.092 / 4064.056) |
| = | 0.19343 | / | 0.18063 |
| | = | 1.0709 |
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) |
| = | ((1150.616 + 951.336) / 3664.545) | / | ((1102.858 + 808.142) / 3325.895) |
| = | 0.573592 | / | 0.574582 |
| | = | 0.9983 |
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 |
| = | (482.522 - -28.664 | - | 624.844) | / | 3664.545 |
| | = | -0.031016 |
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.
Lincoln Electric Holdings has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.
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