Ferrari NV (MIL:RACE) Beneish M-Score : -2.59 (As of Mar. 13, 2025)

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What is Ferrari 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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:RACE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48 Med: -2.67 Max: -2.34
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Ferrari NV was -2.34. The lowest was -3.48. And the median was -2.67.

Ferrari NV Beneish M-Score Historical Data

The historical data trend for Ferrari 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.

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Ferrari NV Beneish M-Score Chart

Ferrari NV Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.74

-2.55

-2.52

-2.67

-2.59

Ferrari 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															-2.67	-2.65	-2.64	-2.75	-2.59

Competitive Comparison of Ferrari NV's Beneish M-Score

For the Auto Manufacturers subindustry, Ferrari 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.

Ferrari NV's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ferrari NV's Beneish M-Score distribution charts can be found below:

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

Ferrari 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 Ferrari NV 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 * 1.041

0.528 * 0.9937

0.404 * 0.9017

0.892 * 1.1183

0.115 * 1.1079

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0847

4.679 * -0.041977

0.327 * 1.0358

-2.59

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €2,084 Mil.
Revenue was 1735.541 + 1644.439 + 1712.059 + 1584.629 = €6,677 Mil.
Gross Profit was 871.326 + 817.365 + 855.498 + 802.996 = €3,347 Mil.
Total Current Assets was €5,020 Mil.
Total Assets was €9,497 Mil.
Property, Plant and Equipment(Net PPE) was €1,829 Mil.
Depreciation, Depletion and Amortization(DDA) was €667 Mil.
Selling, General, & Admin. Expense(SGA) was €561 Mil.
Total Current Liabilities was €1,491 Mil.
Long-Term Debt & Capital Lease Obligation was €3,352 Mil.
Net Income was 384.216 + 374.173 + 412.114 + 351.374 = €1,522 Mil.
Non Operating Income was 4.085 + 0.842 + -0.56 + -10.48 = €-6 Mil.
Cash Flow from Operations was 495.019 + 611.221 + 315.715 + 504.701 = €1,927 Mil.

Total Receivables was €1,790 Mil.
Revenue was 1523.4 + 1544.032 + 1473.708 + 1429.006 = €5,970 Mil.
Gross Profit was 743.62 + 765.283 + 747.396 + 717.97 = €2,974 Mil.
Total Current Assets was €3,986 Mil.
Total Assets was €8,051 Mil.
Property, Plant and Equipment(Net PPE) was €1,575 Mil.
Depreciation, Depletion and Amortization(DDA) was €662 Mil.
Selling, General, & Admin. Expense(SGA) was €463 Mil.
Total Current Liabilities was €1,487 Mil.
Long-Term Debt & Capital Lease Obligation was €2,477 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)
	=	(2083.563 / 6676.668)	/	(1789.683 / 5970.146)
	=	0.312066	/	0.299772
	=	1.041

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)
	=	(2974.269 / 5970.146)	/	(3347.185 / 6676.668)
	=	0.49819	/	0.501326
	=	0.9937

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 - (5019.903 + 1828.784) / 9497.146)	/	(1 - (3986.007 + 1575.2) / 8051.312)
	=	0.278869	/	0.309279
	=	0.9017

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
	=	6676.668	/	5970.146
	=	1.1183

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))
	=	(662.305 / (662.305 + 1575.2))	/	(666.777 / (666.777 + 1828.784))
	=	0.296002	/	0.267185
	=	1.1079

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)
	=	(561.144 / 6676.668)	/	(462.58 / 5970.146)
	=	0.084046	/	0.077482
	=	1.0847

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)
	=	((3351.888 + 1491.01) / 9497.146)	/	((2477.186 + 1486.556) / 8051.312)
	=	0.509932	/	0.49231
	=	1.0358

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
	=	(1521.877 - -6.113	-	1926.656)	/	9497.146
	=	-0.041977

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.

Ferrari NV has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Ferrari NV Beneish M-Score Related Terms

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Ferrari NV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ferrari NV (MIL:RACE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RACE:USA RACEN:Mexico RACEm:UK 0RDT:UK 2FE:Germany 2FE:Bulgaria RACE:Austria

Address

Via Abetone Inferiore n. 4, Maranello, ITA, I-41053

Website

https://www.ferrari.com

Ferrari designs, engineers, and manufactures some of the world's most expensive luxury cars. With supply carefully controlled to be below demand and a brand steeped in decades of motor racing history, a Ferrari is viewed as a status symbol. In 2023, the company sold 13,663 vehicles at an average price over EUR 400,000 with more than 70% of its vehicles being sold to existing Ferrari clients. Eighty-six percent of revenue is generated from the sale of cars and spare parts and 10% from sponsorship, commercial, and brand activities including racing and lifestyle activities. In 2023, the Europe, Middle East, and Africa region accounted for 48% of revenue, the Americas was 30%, mainland China, Hong Kong, and Taiwan was 10%, and the rest of Asia was 13%.