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Grifols Beneish M-Score

: -1.62 (As of Today)
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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.

Warning Sign:

Beneish M-Score -1.62 higher than -1.78, which implies that the company might have manipulated its financial results.

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

GRFS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.34   Med: -2.57   Max: -1.62
Current: -1.62

During the past 13 years, the highest Beneish M-Score of Grifols was -1.62. The lowest was -4.34. And the median was -2.57.


Grifols Beneish M-Score Historical Data

The historical data trend for Grifols'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.

Grifols Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.80 -2.16 -3.73 -2.44 -2.63

Grifols Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Dec21 Jun22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.44 -4.34 -2.44 -2.63 -1.62

Competitive Comparison

For the Drug Manufacturers - General subindustry, Grifols'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.

   

Grifols Beneish M-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, Grifols's Beneish M-Score distribution charts can be found below:

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



Grifols 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 Grifols 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 * 1.7613+0.528 * 1.0157+0.404 * 0.9868+0.892 * 0.7564+0.115 * 2.1609
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0817+4.679 * -0.0064-0.327 * 0.9902
=-1.90

* 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 (Jun22) TTM:Last Year (Dec20) TTM:
Total Receivables was $817 Mil.
Revenue was 1630.9714587738 + 0 + 1628.7927710843 + 1410.3976190476 = $4,670 Mil.
Gross Profit was 610.94080338266 + 0 + 699.75421686747 + 634.9130952381 = $1,946 Mil.
Total Current Assets was $4,686 Mil.
Total Assets was $22,240 Mil.
Property, Plant and Equipment(Net PPE) was $4,469 Mil.
Depreciation, Depletion and Amortization(DDA) was $200 Mil.
Selling, General, & Admin. Expense(SGA) was $933 Mil.
Total Current Liabilities was $1,751 Mil.
Long-Term Debt & Capital Lease Obligation was $9,678 Mil.
Net Income was 95.496828752643 + 0 + 164.91686746988 + 154.68452380952 = $415 Mil.
Non Operating Income was 94.07399577167 + 0 + 5.4879518072289 + 51.259523809524 = $151 Mil.
Cash Flow from Operations was 0 + 0 + 194.73855421687 + 211.51071428571 = $406 Mil.
Total Receivables was $613 Mil.
Revenue was 1592.8527980535 + 1594.0777385159 + 1558.5833333333 + 1429.0817679558 = $6,175 Mil.
Gross Profit was 718.40267639903 + 737.36160188457 + 503.81081081081 + 653.29723756906 = $2,613 Mil.
Total Current Assets was $3,850 Mil.
Total Assets was $18,582 Mil.
Property, Plant and Equipment(Net PPE) was $3,653 Mil.
Depreciation, Depletion and Amortization(DDA) was $372 Mil.
Selling, General, & Admin. Expense(SGA) was $1,141 Mil.
Total Current Liabilities was $1,624 Mil.
Long-Term Debt & Capital Lease Obligation was $8,019 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)
=(817.10147991543 / 4670.1618489057) / (613.38199513382 / 6174.5956378586)
=0.17496213 / 0.09933962
=1.7613

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)
=(2612.8723266635 / 6174.5956378586) / (1945.6081154882 / 4670.1618489057)
=0.42316493 / 0.416604
=1.0157

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 - (4685.8065539112 + 4469.2706131078) / 22240.035940803) / (1 - (3850.3090024331 + 3653.0450121655) / 18582.452554745)
=0.58835151 / 0.59621293
=0.9868

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
=4670.1618489057 / 6174.5956378586
=0.7564

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))
=(372.08379979159 / (372.08379979159 + 3653.0450121655)) / (199.73554216867 / (199.73554216867 + 4469.2706131078))
=0.09244022 / 0.04277903
=2.1609

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)
=(933.23792575921 / 4670.1618489057) / (1140.6669050874 / 6174.5956378586)
=0.19982989 / 0.18473548
=1.0817

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)
=((9677.5909090909 + 1750.8773784355) / 22240.035940803) / ((8019.2554744526 + 1624.2554744526) / 18582.452554745)
=0.51386915 / 0.51895792
=0.9902

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
=(415.09822003205 - 150.82147138842 - 406.24926850258) / 22240.035940803
=-0.0064

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.

Grifols has a M-score of -1.90 suggests that the company is unlikely to be a manipulator.


Grifols Beneish M-Score Related Terms

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Grifols Business Description

Grifols logo
Address
Avinguda de la Generalitat, 152-158, Parc de Negocis Can Sant Joan, Sant Cugat del Valles, Barcelona, ESP, 08174
As a vertically integrated plasma derivative producer, Spain-based Grifols collects plasma and then manufactures and sells plasma-derived products globally. By acquiring Talecris in 2011, Grifols dramatically expanded its plasma-derived product portfolio, and the firm's bioscience business contributed 77% of sales in 2021. Grifols also has smaller segments including diagnostics, hospital supplies, and biosupplies. Diagnostics is now roughly 15% of revenue following the Novartis and Hologic deals.

Grifols Headlines

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