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Newell Brands Beneish M-Score

: -2.41 (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.

Good Sign:

Beneish M-Score -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NWL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Med: -2.51   Max: 5.63
Current: -2.41

During the past 13 years, the highest Beneish M-Score of Newell Brands was 5.63. The lowest was -3.51. And the median was -2.51.


Newell Brands Beneish M-Score Historical Data

The historical data trend for Newell Brands'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.

Newell Brands 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 -2.54 -2.11 -2.41 -2.78 -2.57

Newell Brands Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 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 -2.56 -2.60 -2.57 -2.47 -2.41

Competitive Comparison

For the Household & Personal Products subindustry, Newell Brands'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.

   

Newell Brands Beneish M-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Newell Brands's Beneish M-Score distribution charts can be found below:

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



Newell Brands 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 Newell Brands 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 * 0.8986+0.528 * 1.0632+0.404 * 0.9722+0.892 * 1.0124+0.115 * 1.1402
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9576+4.679 * 0.0226-0.327 * 0.9929
=-2.41

* 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 (Jun21) TTM:
Total Receivables was $1,562 Mil.
Revenue was 2534 + 2388 + 2805 + 2787 = $10,514 Mil.
Gross Profit was 825 + 740 + 835 + 848 = $3,248 Mil.
Total Current Assets was $4,757 Mil.
Total Assets was $14,448 Mil.
Property, Plant and Equipment(Net PPE) was $1,701 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General, & Admin. Expense(SGA) was $2,190 Mil.
Total Current Liabilities was $4,630 Mil.
Long-Term Debt & Capital Lease Obligation was $4,293 Mil.
Net Income was 204 + 234 + 96 + 190 = $724 Mil.
Non Operating Income was -12 + 119 + -60 + -7 = $40 Mil.
Cash Flow from Operations was -178 + -272 + 394 + 414 = $358 Mil.
Total Receivables was $1,717 Mil.
Revenue was 2709 + 2288 + 2689 + 2699 = $10,385 Mil.
Gross Profit was 882 + 731 + 884 + 914 = $3,411 Mil.
Total Current Assets was $4,655 Mil.
Total Assets was $14,620 Mil.
Property, Plant and Equipment(Net PPE) was $1,649 Mil.
Depreciation, Depletion and Amortization(DDA) was $347 Mil.
Selling, General, & Admin. Expense(SGA) was $2,259 Mil.
Total Current Liabilities was $3,776 Mil.
Long-Term Debt & Capital Lease Obligation was $5,318 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)
=(1562 / 10514) / (1717 / 10385)
=0.14856382 / 0.16533462
=0.8986

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)
=(3411 / 10385) / (3248 / 10514)
=0.3284545 / 0.30892144
=1.0632

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 - (4757 + 1701) / 14448) / (1 - (4655 + 1649) / 14620)
=0.55301772 / 0.56880985
=0.9722

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
=10514 / 10385
=1.0124

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))
=(347 / (347 + 1649)) / (306 / (306 + 1701))
=0.1738477 / 0.15246637
=1.1402

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)
=(2190 / 10514) / (2259 / 10385)
=0.2082937 / 0.21752528
=0.9576

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)
=((4293 + 4630) / 14448) / ((5318 + 3776) / 14620)
=0.61759413 / 0.62202462
=0.9929

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
=(724 - 40 - 358) / 14448
=0.0226

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.

Newell Brands has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.


Newell Brands Beneish M-Score Related Terms

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Newell Brands Business Description

Newell Brands logo
Address
6655 Peachtree Dunwoody Road, Atlanta, GA, USA, 30328
Newell Brands Inc is an American global consumer goods company. The business activities of the group function through five segments namely, Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, Outdoor and Recreation. Learning and Development segment generates most of the revenue for the firm which offers baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products and labeling solutions.
Executives
Mejia Maria Fernanda officer: CEO, International ONE KELLOGG SQUARE PO BOX 3599 BATTLE CREEK MI 49016-3599
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Icahn Carl C 10 percent owner C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH-1 SUNNY ISLES BEACH FL 33160
Geller Michal J. officer: President, eCommerce & Digital 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Sesplankis Jeffrey M officer: Chief Accounting Officer 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Johnson Jay Lecoryelle director C/O DIAMONDROCK HOSPITALITY COMPANY 2 BETHESDA METRO CENTER, SUITE 1400 BETHESDA MD 20814
Robins Christine Marie officer: Business Unit CEO - A&C 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Mcdermott Michael P officer: Business Unit CEO - Commercial 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Pisani James Anthony officer: Bus. Unit CEO - Outdoor & Rec. 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Malkoski Kristine Kay officer: Business Unit CEO - Food 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Hayes Michael Mchugh officer: Chief Customer Officer 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
Hammer David Mark officer: Business Unit CEO - A&C 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328
High River Limited Partnership 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Parsons Stephen B officer: Chief Human Resources Officer NEWELL BRANDS INC. 6655 PEACHTEE DUNWOODY ROAD ATLANTA GA 30328

Newell Brands Headlines

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