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Patrick Industries Beneish M-Score

: -2.08 (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 -2.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PATK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.98   Med: -2.47   Max: 2.51
Current: -2.08

During the past 13 years, the highest Beneish M-Score of Patrick Industries was 2.51. The lowest was -3.98. And the median was -2.47.


Patrick Industries Beneish M-Score Historical Data

The historical data trend for Patrick Industries'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.

Patrick Industries 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 -1.74 -2.66 -2.75 -2.33 -2.25

Patrick Industries 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 -1.86 -1.94 -2.25 -1.83 -2.08

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Patrick Industries'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.

   

Patrick Industries Beneish M-Score Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Patrick Industries's Beneish M-Score distribution charts can be found below:

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



Patrick Industries 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 Patrick Industries 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 * 0.8946+0.528 * 0.9121+0.404 * 0.9315+0.892 * 1.503+0.115 * 0.872
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0759+4.679 * 0.033-0.327 * 1.0092
=-2.08

* 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 $355 Mil.
Revenue was 1475.693 + 1342.175 + 1147.479 + 1060.177 = $5,026 Mil.
Gross Profit was 327.104 + 295.345 + 227.024 + 208.161 = $1,058 Mil.
Total Current Assets was $1,223 Mil.
Total Assets was $3,025 Mil.
Property, Plant and Equipment(Net PPE) was $505 Mil.
Depreciation, Depletion and Amortization(DDA) was $119 Mil.
Selling, General, & Admin. Expense(SGA) was $308 Mil.
Total Current Liabilities was $473 Mil.
Long-Term Debt & Capital Lease Obligation was $1,600 Mil.
Net Income was 116.524 + 112.673 + 61.02 + 57.397 = $348 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 97.335 + -23.039 + 104.713 + 68.672 = $248 Mil.
Total Receivables was $264 Mil.
Revenue was 1019.953 + 850.483 + 772.613 + 700.707 = $3,344 Mil.
Gross Profit was 204.477 + 161.532 + 142.318 + 133.497 = $642 Mil.
Total Current Assets was $764 Mil.
Total Assets was $2,225 Mil.
Property, Plant and Equipment(Net PPE) was $438 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General, & Admin. Expense(SGA) was $190 Mil.
Total Current Liabilities was $329 Mil.
Long-Term Debt & Capital Lease Obligation was $1,182 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)
=(355.352 / 5025.524) / (264.296 / 3343.756)
=0.07070944 / 0.07904165
=0.8946

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)
=(641.824 / 3343.756) / (1057.634 / 5025.524)
=0.19194702 / 0.21045248
=0.9121

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 - (1223.372 + 505.255) / 3024.831) / (1 - (763.624 + 437.598) / 2224.707)
=0.42852113 / 0.46005384
=0.9315

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
=5025.524 / 3343.756
=1.503

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))
=(87.296 / (87.296 + 437.598)) / (119.068 / (119.068 + 505.255))
=0.16631167 / 0.19071538
=0.872

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)
=(307.995 / 5025.524) / (190.476 / 3343.756)
=0.06128615 / 0.05696468
=1.0759

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)
=((1599.941 + 473.411) / 3024.831) / ((1182.268 + 328.792) / 2224.707)
=0.68544391 / 0.67921753
=1.0092

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
=(347.614 - 0 - 247.681) / 3024.831
=0.033

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.

Patrick Industries has a M-score of -2.08 suggests that the company is unlikely to be a manipulator.


Patrick Industries Beneish M-Score Related Terms

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Patrick Industries Business Description

Patrick Industries logo
Traded in Other Exchanges
Address
107 W. Franklin Street, P.O. Box 638, Elkhart, IN, USA, 46515
Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured-housing industries. One of the firm's RV customers makes up a significant portion of revenue. Nearly all of Patrick Industries' revenue comes from North America.
Executives
Duthie Joel D officer: Chief Legal Officer/Secretary 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Petkovich Jacob R officer: EVP Finance, CFO & Treasurer 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Rose James E other: Principal Accounting Officer 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Mayes Derrick B director 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Klyn Pamela R director 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Suggs Denis director 7701 FORSYTH BOULEVARD, SUITE 800 ST. LOUIS MO 63105
Forbes John A director 107 W. FRANKLIN STREET, P.O. BOX 638 ELKHART IN 46515
Welch M Scott director 6 LONGWOOD COURT ELKHART IN 46516
Wells Walter E director 221 US 20 WEST P 0 BOX 151 MIDDLEBURY IN 46540
Ellis Kip B officer: EVP Operations & COO 107 W. FRANKLIN STREET, P.O. BOX 638 ELKHART IN 46515
Boone Joshua A officer: VP - Finance & CFO 107 W. FRANKLIN STREET P.O. BOX 638 ELKHART IN 46515
Rodino Jeff officer: EVP-Sales, Chief Sales Officer 107 W. FRANKLIN STREET P.O.BOX 638 ELKHART IN 46515
Blosser Courtney officer: Chief Human Resource Officer 107 W. FRANKLIN STREET P.O.BOX 638 ELKHART IN 46515
Kitson Michael A director 107 W. FRANKLIN STREET P.O. BOX 638 ELKHART IN 46515
Hassler Paul E director

Patrick Industries Headlines

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