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Koninklijke Philips NV (MIL:1PHIA) Beneish M-Score : -2.90 (As of Mar. 16, 2025)


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What is Koninklijke Philips NV 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 -2.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:1PHIA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.52   Max: -2.14
Current: -2.9

During the past 13 years, the highest Beneish M-Score of Koninklijke Philips NV was -2.14. The lowest was -2.97. And the median was -2.52.


Koninklijke Philips NV Beneish M-Score Historical Data

The historical data trend for Koninklijke Philips NV'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.

* Premium members only.

Koninklijke Philips NV Beneish M-Score Chart

Koninklijke Philips NV Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.85 -2.14 -2.47 -2.97 -2.90

Koninklijke Philips NV 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.97 - - - -2.90

Competitive Comparison of Koninklijke Philips NV's Beneish M-Score

For the Medical Devices subindustry, Koninklijke Philips NV'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.


Koninklijke Philips NV's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Koninklijke Philips NV's Beneish M-Score distribution charts can be found below:

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



Koninklijke Philips NV 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 Koninklijke Philips NV 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 * 0.976+0.528 * 0.9504+0.404 * 0.9861+0.892 * 0.9919+0.115 * 0.9314
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9956+4.679 * -0.073785-0.327 * 1.0113
=-2.90

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was €4,115 Mil.
Revenue was €18,021 Mil.
Gross Profit was €7,773 Mil.
Total Current Assets was €10,022 Mil.
Total Assets was €28,976 Mil.
Property, Plant and Equipment(Net PPE) was €2,453 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,389 Mil.
Selling, General, & Admin. Expense(SGA) was €5,068 Mil.
Total Current Liabilities was €8,144 Mil.
Long-Term Debt & Capital Lease Obligation was €7,048 Mil.
Net Income was €-702 Mil.
Gross Profit was €-133 Mil.
Cash Flow from Operations was €1,569 Mil.
Total Receivables was €4,251 Mil.
Revenue was €18,169 Mil.
Gross Profit was €7,448 Mil.
Total Current Assets was €9,940 Mil.
Total Assets was €29,406 Mil.
Property, Plant and Equipment(Net PPE) was €2,484 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,261 Mil.
Selling, General, & Admin. Expense(SGA) was €5,132 Mil.
Total Current Liabilities was €8,286 Mil.
Long-Term Debt & Capital Lease Obligation was €6,959 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)
=(4115 / 18021) / (4251 / 18169)
=0.228345 / 0.23397
=0.976

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)
=(7448 / 18169) / (7773 / 18021)
=0.409929 / 0.43133
=0.9504

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 - (10022 + 2453) / 28976) / (1 - (9940 + 2484) / 29406)
=0.569471 / 0.577501
=0.9861

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
=18021 / 18169
=0.9919

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))
=(1261 / (1261 + 2484)) / (1389 / (1389 + 2453))
=0.336716 / 0.36153
=0.9314

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)
=(5068 / 18021) / (5132 / 18169)
=0.281227 / 0.282459
=0.9956

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)
=((7048 + 8144) / 28976) / ((6959 + 8286) / 29406)
=0.524296 / 0.518432
=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
=(-702 - -133 - 1569) / 28976
=-0.073785

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.

Koninklijke Philips NV has a M-score of -2.90 suggests that the company is unlikely to be a manipulator.


Koninklijke Philips NV Beneish M-Score Related Terms

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Koninklijke Philips NV Business Description

Address
Philips Center, Amstelplein 2, Amsterdam, NLD, 1096 BC
Koninklijke Philips is a diversified global healthcare company operating in three segments: diagnosis and treatment, connected care, and personal health. Nearly 50% of the company's revenue comes from the diagnosis and treatment segment, which features imaging systems, ultrasound equipment, and image-guided therapy solutions. The connected care segment (around 30% of revenue) encompasses monitoring and analytics systems for hospitals, informatics business, and also houses the sleep and respiratory care segment. Personal health business (remainder of revenue) is mainly oral health and personal care product lines, which include electric toothbrushes and men's grooming and personal care products.

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