3M Co Beneish M-Score Historical Data
The historical data trend for 3M Co'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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3M Co Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.65 |
-2.82 |
-2.62 |
-2.73 |
-3.98 |
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3M Co Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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|
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-2.73 |
-2.80 |
-3.62 |
-4.07 |
-3.98 |
Competitive Comparison
For the Conglomerates subindustry, 3M Co'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.
3M Co Beneish M-Score Distribution
For the Conglomerates industry and Industrials sector, 3M Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where 3M Co's Beneish M-Score falls into.
3M Co 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 3M Co 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 * 1.0991 | + | 0.528 * 1.0081 | + | 0.404 * 1.0249 | + | 0.892 * 0.9548 | + | 0.115 * 0.9267 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 2.5464 | + | 4.679 * -0.268762 | - | 0.327 * 1.1008 |
| = | -3.98 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $4,864 Mil.
Revenue was 8013 + 8312 + 8325 + 8031 = $32,681 Mil.
Gross Profit was 3335 + 3732 + 3719 + 3418 = $14,204 Mil.
Total Current Assets was $16,379 Mil.
Total Assets was $50,580 Mil.
Property, Plant and Equipment(Net PPE) was $9,918 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,987 Mil.
Selling, General, & Admin. Expense(SGA) was $21,397 Mil.
Total Current Liabilities was $15,297 Mil.
Long-Term Debt & Capital Lease Obligation was $13,682 Mil.
Net Income was 945 + -2075 + -6841 + 976 = $-6,995 Mil.
Non Operating Income was 0 + 36 + -65 + -52 = $-81 Mil.
Cash Flow from Operations was 1986 + 1910 + 1509 + 1275 = $6,680 Mil.
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Total Receivables was $4,635 Mil.
Revenue was 8079 + 8619 + 8702 + 8829 = $34,229 Mil.
Gross Profit was 3494 + 3891 + 3609 + 4003 = $14,997 Mil.
Total Current Assets was $14,688 Mil.
Total Assets was $46,455 Mil.
Property, Plant and Equipment(Net PPE) was $10,007 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,831 Mil.
Selling, General, & Admin. Expense(SGA) was $8,801 Mil.
Total Current Liabilities was $9,523 Mil.
Long-Term Debt & Capital Lease Obligation was $14,656 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) |
| = | (4864 / 32681) | / | (4635 / 34229) |
| = | 0.148833 | / | 0.135411 |
| | = | 1.0991 |
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) |
| = | (14997 / 34229) | / | (14204 / 32681) |
| = | 0.438137 | / | 0.434626 |
| | = | 1.0081 |
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 - (16379 + 9918) / 50580) | / | (1 - (14688 + 10007) / 46455) |
| = | 0.480091 | / | 0.46841 |
| | = | 1.0249 |
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 |
| = | 32681 | / | 34229 |
| | = | 0.9548 |
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)) |
| = | (1831 / (1831 + 10007)) | / | (1987 / (1987 + 9918)) |
| = | 0.154671 | / | 0.166905 |
| | = | 0.9267 |
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) |
| = | (21397 / 32681) | / | (8801 / 34229) |
| = | 0.654723 | / | 0.257121 |
| | = | 2.5464 |
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) |
| = | ((13682 + 15297) / 50580) | / | ((14656 + 9523) / 46455) |
| = | 0.572934 | / | 0.520482 |
| | = | 1.1008 |
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 |
| = | (-6995 - -81 | - | 6680) | / | 50580 |
| | = | -0.268762 |
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.
3M Co has a M-score of -3.98 suggests that the company is unlikely to be a manipulator.
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