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 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
| Beneish M-Score |
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-2.72 |
-2.65 |
-2.82 |
-2.62 |
-2.72 |
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3M Co Quarterly Data
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Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
| Beneish M-Score |
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-2.62 |
-2.57 |
-2.67 |
-2.68 |
-2.72 |
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 in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.
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 * 1.0037 | + | 0.528 * 1.0691 | + | 0.404 * 1.0312 | + | 0.892 * 0.9682 | + | 0.115 * 1.0147 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.3226 | + | 4.679 * -0.047358 | - | 0.327 * 0.9505 |
| = | -2.72 |
* 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 (Dec22) TTM: | Last Year (Dec21) TTM: |
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 $8,734 Mil.
Total Current Liabilities was $9,523 Mil.
Long-Term Debt & Capital Lease Obligation was $14,656 Mil.
Net Income was 541 + 3859 + 78 + 1299 = $5,777 Mil.
Non Operating Income was -470 + 2789 + 67 + 0 = $2,386 Mil.
Cash Flow from Operations was 1922 + 1531 + 1127 + 1011 = $5,591 Mil.
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Total Receivables was $4,770 Mil.
Revenue was 8612 + 8942 + 8950 + 8851 = $35,355 Mil.
Gross Profit was 3914 + 4089 + 4231 + 4326 = $16,560 Mil.
Total Current Assets was $15,403 Mil.
Total Assets was $47,072 Mil.
Property, Plant and Equipment(Net PPE) was $10,287 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,915 Mil.
Selling, General, & Admin. Expense(SGA) was $6,821 Mil.
Total Current Liabilities was $9,035 Mil.
Long-Term Debt & Capital Lease Obligation was $16,740 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) |
| = | (4635 / 34229) | / | (4770 / 35355) |
| = | 0.135411 | / | 0.134917 |
| | = | 1.0037 |
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) |
| = | (16560 / 35355) | / | (14997 / 34229) |
| = | 0.468392 | / | 0.438137 |
| | = | 1.0691 |
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 - (14688 + 10007) / 46455) | / | (1 - (15403 + 10287) / 47072) |
| = | 0.46841 | / | 0.45424 |
| | = | 1.0312 |
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 |
| = | 34229 | / | 35355 |
| | = | 0.9682 |
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)) |
| = | (1915 / (1915 + 10287)) | / | (1831 / (1831 + 10007)) |
| = | 0.156941 | / | 0.154671 |
| | = | 1.0147 |
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) |
| = | (8734 / 34229) | / | (6821 / 35355) |
| = | 0.255164 | / | 0.192929 |
| | = | 1.3226 |
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) |
| = | ((14656 + 9523) / 46455) | / | ((16740 + 9035) / 47072) |
| = | 0.520482 | / | 0.547565 |
| | = | 0.9505 |
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 |
| = | (5777 - 2386 | - | 5591) | / | 46455 |
| | = | -0.047358 |
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 -2.72 suggests that the company is unlikely to be a manipulator.
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