Deere (MEX:DE) Beneish M-Score : -2.67 (As of Apr. 03, 2025)

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What is Deere 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:DE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.57 Max: -2.17
Current: -2.67

During the past 13 years, the highest Beneish M-Score of Deere was -2.17. The lowest was -2.86. And the median was -2.57.

Deere Beneish M-Score Historical Data

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

Deere Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

Beneish M-Score

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-2.86

-2.45

-2.26

-2.41

-2.65

Deere Quarterly Data
	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25
Beneish M-Score	Get a 7-Day Free Trial															-2.46	-2.51	-2.63	-2.65	-2.67

Competitive Comparison of Deere's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, Deere'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.

Deere's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Beneish M-Score distribution charts can be found below:

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

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Deere 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 Deere 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 * 1.3674

0.528 * 0.9784

0.404 * 1.0684

0.892 * 0.8438

0.115 * 1.0943

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2781

4.679 * -0.034707

0.327 * 1.0113

-2.47

This Year (Jan25) TTM:

Last Year (Jan24) TTM:

Total Receivables was MXN1,187,467 Mil.
Revenue was 170436.798 + 216879.968 + 238940.68 + 255911.807 = MXN882,169 Mil.
Gross Profit was 66528.525 + 80305.883 + 92987.5 + 99654.928 = MXN339,477 Mil.
Total Current Assets was MXN1,544,473 Mil.
Total Assets was MXN2,127,242 Mil.
Property, Plant and Equipment(Net PPE) was MXN300,812 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN40,985 Mil.
Selling, General, & Admin. Expense(SGA) was MXN83,413 Mil.
Total Current Liabilities was MXN702,025 Mil.
Long-Term Debt & Capital Lease Obligation was MXN898,517 Mil.
Net Income was 17926.601 + 24939.093 + 32248.065 + 40442.154 = MXN115,556 Mil.
Non Operating Income was 5074.734 + 4927.724 + 5653.64 + 4061.28 = MXN19,717 Mil.
Cash Flow from Operations was -23352.028 + 101999.889 + 59419.013 + 31602.898 = MXN169,670 Mil.

Total Receivables was MXN1,029,198 Mil.
Revenue was 203469.265 + 273629.321 + 259752.227 + 308629.525 = MXN1,045,480 Mil.
Gross Profit was 79800.625 + 99345.659 + 98855.308 + 115623.65 = MXN393,625 Mil.
Total Current Assets was MXN1,290,448 Mil.
Total Assets was MXN1,741,169 Mil.
Property, Plant and Equipment(Net PPE) was MXN234,713 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN35,449 Mil.
Selling, General, & Admin. Expense(SGA) was MXN77,345 Mil.
Total Current Liabilities was MXN609,532 Mil.
Long-Term Debt & Capital Lease Obligation was MXN685,897 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)
	=	(1187467.127 / 882169.253)	/	(1029197.905 / 1045480.338)
	=	1.346076	/	0.984426
	=	1.3674

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)
	=	(393625.242 / 1045480.338)	/	(339476.836 / 882169.253)
	=	0.376502	/	0.384821
	=	0.9784

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 - (1544472.601 + 300812.078) / 2127241.85)	/	(1 - (1290447.907 + 234712.773) / 1741168.572)
	=	0.132546	/	0.124059
	=	1.0684

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
	=	882169.253	/	1045480.338
	=	0.8438

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))
	=	(35448.779 / (35448.779 + 234712.773))	/	(40984.772 / (40984.772 + 300812.078))
	=	0.131213	/	0.11991
	=	1.0943

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)
	=	(83413.435 / 882169.253)	/	(77345.118 / 1045480.338)
	=	0.094555	/	0.07398
	=	1.2781

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)
	=	((898516.724 + 702025.499) / 2127241.85)	/	((685897.195 + 609531.81) / 1741168.572)
	=	0.752403	/	0.744
	=	1.0113

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
	=	(115555.913 - 19717.378	-	169669.772)	/	2127241.85
	=	-0.034707

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.

Deere has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

Deere Beneish M-Score Related Terms

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Deere Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Deere & Co (MEX:DE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DE:USA 1DE:Italy 0R2P:UK DCO0:Germany DCO:Germany DCO:Germany DCO:Germany DCO:Germany DEER:Canada DEEC34:Brazil DEER:Austria DE:Argentina

Address

One John Deere Place, Moline, IL, USA, 61265

Website

https://www.deere.com

Deere is the world's leading manufacturer of agricultural equipment and a major producer of construction machinery. The company is divided into four reporting segments: production & precision agriculture (PPA), small agriculture & turf (SAT), construction & forestry (CF), and financial services (FS), its captive finance subsidiary. The core PPA business is the largest contributor to sales and profits by far. Geographically, Deere sales are 60% US/Canada, 17% Europe, 14% Latin America, and 9% rest of world. Deere goes to market through a robust dealer network that includes over 2,000 dealer locations in North America with reach into over 100 countries. John Deere financial provides retail financing for machinery to its customers and wholesale financing for dealers.