Rolls-Royce Holdings Beneish M-Score Historical Data
The historical data trend for Rolls-Royce 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.
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Rolls-Royce Holdings Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
Array
(
[0] => -
[1] => -
[2] => -
[3] => -
[4] => -
[5] => -2.77
[6] => -4.90
[7] => -2.98
[8] => -2.82
[9] => -2.45
)
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-2.77 |
-4.90 |
-2.98 |
-2.82 |
-2.45 |
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Rolls-Royce Holdings Semi-Annual Data
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Jun14 |
Dec14 |
Jun15 |
Dec15 |
Jun16 |
Dec16 |
Jun17 |
Dec17 |
Jun18 |
Dec18 |
Jun19 |
Dec19 |
Jun20 |
Dec20 |
Jun21 |
Dec21 |
Jun22 |
Dec22 |
Jun23 |
Dec23 |
| Beneish M-Score |
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-2.98 |
- |
-2.82 |
- |
-2.45 |
Competitive Comparison
For the Aerospace & Defense subindustry, Rolls-Royce 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.
Rolls-Royce Holdings Beneish M-Score Distribution
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's Beneish M-Score falls into.
Rolls-Royce 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 Rolls-Royce 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 * 0.8481 | + | 0.528 * 0.9287 | + | 0.404 * 0.9586 | + | 0.892 * 1.2194 | + | 0.115 * 0.9421 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8452 | + | 4.679 * -0.002317 | - | 0.327 * 0.9545 |
| = | -2.45 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was £6,622 Mil.
Revenue was £16,486 Mil.
Gross Profit was £3,620 Mil.
Total Current Assets was £18,220 Mil.
Total Assets was £31,512 Mil.
Property, Plant and Equipment(Net PPE) was £4,633 Mil.
Depreciation, Depletion and Amortization(DDA) was £948 Mil.
Selling, General, & Admin. Expense(SGA) was £1,110 Mil.
Total Current Liabilities was £14,981 Mil.
Long-Term Debt & Capital Lease Obligation was £4,950 Mil.
Net Income was £2,412 Mil.
Gross Profit was £0 Mil.
Cash Flow from Operations was £2,485 Mil.
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Total Receivables was £6,403 Mil.
Revenue was £13,520 Mil.
Gross Profit was £2,757 Mil.
Total Current Assets was £16,011 Mil.
Total Assets was £29,450 Mil.
Property, Plant and Equipment(Net PPE) was £4,997 Mil.
Depreciation, Depletion and Amortization(DDA) was £952 Mil.
Selling, General, & Admin. Expense(SGA) was £1,077 Mil.
Total Current Liabilities was £13,918 Mil.
Long-Term Debt & Capital Lease Obligation was £5,597 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) |
| = | (6622 / 16486) | / | (6403 / 13520) |
| = | 0.401674 | / | 0.473595 |
| | = | 0.8481 |
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) |
| = | (2757 / 13520) | / | (3620 / 16486) |
| = | 0.20392 | / | 0.21958 |
| | = | 0.9287 |
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 - (18220 + 4633) / 31512) | / | (1 - (16011 + 4997) / 29450) |
| = | 0.274784 | / | 0.286655 |
| | = | 0.9586 |
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 |
| = | 16486 | / | 13520 |
| | = | 1.2194 |
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)) |
| = | (952 / (952 + 4997)) | / | (948 / (948 + 4633)) |
| = | 0.160027 | / | 0.169862 |
| | = | 0.9421 |
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) |
| = | (1110 / 16486) | / | (1077 / 13520) |
| = | 0.06733 | / | 0.07966 |
| | = | 0.8452 |
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) |
| = | ((4950 + 14981) / 31512) | / | ((5597 + 13918) / 29450) |
| = | 0.632489 | / | 0.662649 |
| | = | 0.9545 |
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 |
| = | (2412 - 0 | - | 2485) | / | 31512 |
| | = | -0.002317 |
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.
Rolls-Royce Holdings has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.
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