Avery Dennison (MEX:AVY) Beneish M-Score : -2.61 (As of Apr. 05, 2025)

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What is Avery Dennison 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:AVY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66 Med: -2.57 Max: -2.36
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Avery Dennison was -2.36. The lowest was -2.66. And the median was -2.57.

Avery Dennison Beneish M-Score Historical Data

The historical data trend for Avery Dennison'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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Avery Dennison Beneish M-Score Chart

Avery Dennison Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.54

-2.41

-2.64

-2.55

-2.61

Avery Dennison 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															-2.55	-2.57	-2.60	-2.54	-2.61

Competitive Comparison of Avery Dennison's Beneish M-Score

For the Packaging & Containers subindustry, Avery Dennison'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.

Avery Dennison's Beneish M-Score Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Avery Dennison's Beneish M-Score distribution charts can be found below:

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

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Avery Dennison 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 Avery Dennison 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 * 1.1207

0.528 * 0.9433

0.404 * 0.9642

0.892 * 1.1361

0.115 * 1.0469

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0169

4.679 * -0.02335

0.327 * 0.9954

-2.40

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN30,579 Mil.
Revenue was 45584.303 + 42991.801 + 40950.926 + 35703.523 = MXN165,231 Mil.
Gross Profit was 12705.292 + 12337.942 + 12140.732 + 10492.152 = MXN47,676 Mil.
Total Current Assets was MXN64,208 Mil.
Total Assets was MXN175,275 Mil.
Property, Plant and Equipment(Net PPE) was MXN33,092 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN5,892 Mil.
Selling, General, & Admin. Expense(SGA) was MXN23,735 Mil.
Total Current Liabilities was MXN59,702 Mil.
Long-Term Debt & Capital Lease Obligation was MXN53,389 Mil.
Net Income was 3628.892 + 3577.728 + 3238.994 + 2861.194 = MXN13,307 Mil.
Non Operating Income was -193.958 + -204.779 + -388.386 + -66.385 = MXN-854 Mil.
Cash Flow from Operations was 7324.522 + 5318.35 + 3621.884 + 1988.231 = MXN18,253 Mil.

Total Receivables was MXN24,017 Mil.
Revenue was 35824.15 + 36550.072 + 35839.323 + 37221.625 = MXN145,435 Mil.
Gross Profit was 10116.652 + 10203.99 + 9487.434 + 9774.957 = MXN39,583 Mil.
Total Current Assets was MXN47,460 Mil.
Total Assets was MXN139,355 Mil.
Property, Plant and Equipment(Net PPE) was MXN27,597 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN5,187 Mil.
Selling, General, & Admin. Expense(SGA) was MXN20,544 Mil.
Total Current Liabilities was MXN45,822 Mil.
Long-Term Debt & Capital Lease Obligation was MXN44,508 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)
	=	(30578.627 / 165230.553)	/	(24016.863 / 145435.17)
	=	0.185066	/	0.165138
	=	1.1207

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)
	=	(39583.033 / 145435.17)	/	(47676.118 / 165230.553)
	=	0.27217	/	0.288543
	=	0.9433

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 - (64208.444 + 33091.739) / 175275.474)	/	(1 - (47459.997 + 27596.732) / 139355.181)
	=	0.444873	/	0.4614
	=	0.9642

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
	=	165230.553	/	145435.17
	=	1.1361

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))
	=	(5187.032 / (5187.032 + 27596.732))	/	(5891.579 / (5891.579 + 33091.739))
	=	0.15822	/	0.151131
	=	1.0469

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)
	=	(23735.271 / 165230.553)	/	(20543.981 / 145435.17)
	=	0.143649	/	0.141259
	=	1.0169

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)
	=	((53388.506 + 59701.527) / 175275.474)	/	((44508.176 + 45821.982) / 139355.181)
	=	0.645213	/	0.648201
	=	0.9954

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
	=	(13306.808 - -853.508	-	18252.987)	/	175275.474
	=	-0.02335

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.

Avery Dennison has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Avery Dennison Beneish M-Score Related Terms

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Avery Dennison Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Avery Dennison Corp (MEX:AVY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AVY:USA 0HJR:UK AV3:Germany AVY:Argentina

Address

8080 Norton Parkway, Mentor, OH, USA, 44060

Website

https://www.averydennison.com

Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.