A.O. Smith Beneish M-Score Historical Data
The historical data trend for A.O. Smith'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.
A.O. Smith Beneish M-Score Chart
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A.O. Smith Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.69 |
-2.78 |
-2.62 |
-2.12 |
-2.60 |
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A.O. Smith Quarterly Data
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Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
| Beneish M-Score |
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-2.28 |
-2.60 |
-2.57 |
-2.37 |
-2.53 |
Competitive Comparison of A.O. Smith's Beneish M-Score
For the Specialty Industrial Machinery subindustry, A.O. Smith'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.
A.O. Smith's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where A.O. Smith's Beneish M-Score falls into.
A.O. Smith 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 A.O. Smith 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 * 0.9276 | + | 0.528 * 1.0078 | + | 0.404 * 1.0178 | + | 0.892 * 1.0245 | + | 0.115 * 1.0332 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0187 | + | 4.679 * -0.007197 | - | 0.327 * 0.9524 |
| = | -2.53 |
* 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 $558 Mil.
Revenue was 902.6 + 1024.3 + 978.8 + 988.1 = $3,894 Mil.
Gross Profit was 337.3 + 396 + 384.7 + 369.8 = $1,488 Mil.
Total Current Assets was $1,413 Mil.
Total Assets was $3,154 Mil.
Property, Plant and Equipment(Net PPE) was $657 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General, & Admin. Expense(SGA) was $742 Mil.
Total Current Liabilities was $844 Mil.
Long-Term Debt & Capital Lease Obligation was $133 Mil.
Net Income was 120.1 + 156.2 + 147.6 + 137.3 = $561 Mil.
Non Operating Income was -2.6 + 0.9 + 1.2 + -6.8 = $-7 Mil.
Cash Flow from Operations was 195.9 + 57.4 + 106.6 + 231.3 = $591 Mil.
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Total Receivables was $587 Mil.
Revenue was 937.5 + 960.8 + 966.4 + 936.1 = $3,801 Mil.
Gross Profit was 356.2 + 384.7 + 374.1 + 348.6 = $1,464 Mil.
Total Current Assets was $1,505 Mil.
Total Assets was $3,200 Mil.
Property, Plant and Equipment(Net PPE) was $614 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General, & Admin. Expense(SGA) was $711 Mil.
Total Current Liabilities was $896 Mil.
Long-Term Debt & Capital Lease Obligation was $146 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) |
| = | (558.2 / 3893.8) | / | (587.4 / 3800.8) |
| = | 0.143356 | / | 0.154546 |
| | = | 0.9276 |
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) |
| = | (1463.6 / 3800.8) | / | (1487.8 / 3893.8) |
| = | 0.385077 | / | 0.382095 |
| | = | 1.0078 |
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 - (1412.5 + 657) / 3154.2) | / | (1 - (1504.5 + 614.4) / 3200.1) |
| = | 0.343891 | / | 0.337864 |
| | = | 1.0178 |
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 |
| = | 3893.8 | / | 3800.8 |
| | = | 1.0245 |
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)) |
| = | (77.9 / (77.9 + 614.4)) | / | (80.3 / (80.3 + 657)) |
| = | 0.112523 | / | 0.108911 |
| | = | 1.0332 |
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) |
| = | (742.3 / 3893.8) | / | (711.3 / 3800.8) |
| = | 0.190636 | / | 0.187145 |
| | = | 1.0187 |
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) |
| = | ((133.2 + 844.2) / 3154.2) | / | ((145.6 + 895.6) / 3200.1) |
| = | 0.309873 | / | 0.325365 |
| | = | 0.9524 |
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 |
| = | (561.2 - -7.3 | - | 591.2) | / | 3154.2 |
| | = | -0.007197 |
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.
A.O. Smith has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.
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