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Nexeo Solutions (Nexeo Solutions) Beneish M-Score : 0.00 (As of May. 13, 2024)


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What is Nexeo Solutions 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.

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

During the past 5 years, the highest Beneish M-Score of Nexeo Solutions was 0.00. The lowest was 0.00. And the median was 0.00.


Nexeo Solutions Beneish M-Score Historical Data

The historical data trend for Nexeo Solutions'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.

Nexeo Solutions Beneish M-Score Chart

Nexeo Solutions Annual Data
Trend Dec14 Dec15 Sep16 Sep17 Sep18
Beneish M-Score
- - - -1.61 -2.59

Nexeo Solutions Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
Beneish M-Score Get a 7-Day Free Trial 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 -1.83 -2.41 -2.49 -2.59 -2.64

Competitive Comparison of Nexeo Solutions's Beneish M-Score

For the Chemicals subindustry, Nexeo Solutions'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.


Nexeo Solutions's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nexeo Solutions's Beneish M-Score distribution charts can be found below:

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



Nexeo Solutions 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 Nexeo Solutions 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 * 0.9181+0.528 * 0.9978+0.404 * 0.9967+0.892 * 1.0712+0.115 * 0.9598
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0071+4.679 * -0.030747-0.327 * 0.9779
=-2.64

* 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 (Dec18) TTM:Last Year (Dec17) TTM:
Total Receivables was $556 Mil.
Revenue was 935.8 + 1017.2 + 1046.4 + 1041 = $4,040 Mil.
Gross Profit was 98.7 + 117.3 + 120.2 + 115.7 = $452 Mil.
Total Current Assets was $988 Mil.
Total Assets was $2,179 Mil.
Property, Plant and Equipment(Net PPE) was $279 Mil.
Depreciation, Depletion and Amortization(DDA) was $73 Mil.
Selling, General, & Admin. Expense(SGA) was $348 Mil.
Total Current Liabilities was $413 Mil.
Long-Term Debt & Capital Lease Obligation was $805 Mil.
Net Income was 16.2 + -15 + 17.5 + 0.4 = $19 Mil.
Non Operating Income was 0.1 + 0.1 + 0.4 + -12.2 = $-12 Mil.
Cash Flow from Operations was -50.2 + 80.9 + 32.8 + 34.2 = $98 Mil.
Total Receivables was $565 Mil.
Revenue was 929.6 + 981.7 + 942.7 + 917.7 = $3,772 Mil.
Gross Profit was 106.9 + 109.1 + 102.7 + 102.2 = $421 Mil.
Total Current Assets was $995 Mil.
Total Assets was $2,245 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $76 Mil.
Selling, General, & Admin. Expense(SGA) was $322 Mil.
Total Current Liabilities was $431 Mil.
Long-Term Debt & Capital Lease Obligation was $853 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)
=(555.9 / 4040.4) / (565.2 / 3771.7)
=0.137585 / 0.149853
=0.9181

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)
=(420.9 / 3771.7) / (451.9 / 4040.4)
=0.111594 / 0.111845
=0.9978

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 - (987.9 + 279.1) / 2179.1) / (1 - (995.1 + 306.8) / 2244.5)
=0.418567 / 0.41996
=0.9967

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
=4040.4 / 3771.7
=1.0712

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))
=(75.8 / (75.8 + 306.8)) / (72.6 / (72.6 + 279.1))
=0.198118 / 0.206426
=0.9598

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)
=(347.5 / 4040.4) / (322.1 / 3771.7)
=0.086006 / 0.085399
=1.0071

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)
=((805.1 + 413.4) / 2179.1) / ((852.6 + 430.8) / 2244.5)
=0.559176 / 0.571798
=0.9779

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
=(19.1 - -11.6 - 97.7) / 2179.1
=-0.030747

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.

Nexeo Solutions has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.


Nexeo Solutions Beneish M-Score Related Terms

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Nexeo Solutions (Nexeo Solutions) Business Description

Traded in Other Exchanges
N/A
Address
Nexeo Solutions Inc distributes chemicals and plastic products across North America and Asia. The company operates its business through three segments that are; Chemicals, Plastics, and Environmental Services. The firm through its operating segments distributes specialty and industrial chemicals, additives and solvents to industrial users, commodity polymer products and prime engineering resins to companies engaged in plastics processing. Nexeo also provides its customers with on-site and off-site hazardous and non-hazardous waste collection, recovery and arrangement for disposal services or recycling. It generates the majority of the revenues from the sale of chemicals and plastic materials.
Executives
James G Coulter 10 percent owner, other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Thomas E Zacharias director C/O W P CAREY & CO LLC, 50 ROCKEFELLER PLAZA, NEW YORK NY 10020
Brian Herington officer: Executive VP, Chemicals 3 WATERWAY SQUARE PLACE, SUITE 1000, THE WOODLANDS TX 77380
Steven T Romick 10 percent owner 11400 W OLYMPIC BLVD, STE 1200, LOS ANGELES CA 90064
Mark Landecker 10 percent owner 11400 W. OLYMPIC BLVD., STE. 1200, LOS ANGELES CA 90064
J Richard Atwood 10 percent owner
Brian A. Selmo 10 percent owner 11400 W. OLYMPIC BLVD., STE. 1200, LOS ANGELES CA 90064
Gabriela Garcia officer: Controller 1301 RIVERPLACE BOULEVARD, SUITE 2300, JACKSONVILLE FL 32207
David A. Bradley director, officer: President & CEO 15710 JOHN F. KENNDEY BLVD, SUITE 300, HOUSTON TX 77032
Dan F Smith director 1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010
Kenneth Michael Burke director 11742 RIVERVIEW DRIVE, HOUSTON TX 77007
Ross Crane officer: EVP & CFO 3 WATERWAY SQUARE PLACE, SUITE 1000, THE WOODLANDS TX 77380
Tpg Advisors Vi, Inc. other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Tpg Group Holdings (sbs) Advisors, Inc. other: Former 10% Owner C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
David Bonderman other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102

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