NVZMF (Novonesis (Novozymes) B) Beneish M-Score : -1.03 (As of Dec. 12, 2024)

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What is Novonesis (Novozymes) B 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.

Warning Sign:

Beneish M-Score -1.03 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Novonesis (Novozymes) B's Beneish M-Score or its related term are showing as below:

NVZMF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4 Med: -2.58 Max: -1.03
Current: -1.03

During the past 13 years, the highest Beneish M-Score of Novonesis (Novozymes) B was -1.03. The lowest was -3.40. And the median was -2.58.

Novonesis (Novozymes) B Beneish M-Score Historical Data

The historical data trend for Novonesis (Novozymes) B'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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Novonesis (Novozymes) B Beneish M-Score Chart

Novonesis (Novozymes) B Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.44

-2.76

-2.33

-2.63

-2.68

Novonesis (Novozymes) B Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-2.36	-2.36	-2.48	-2.68	-1.03

Competitive Comparison of Novonesis (Novozymes) B's Beneish M-Score

For the Specialty Chemicals subindustry, Novonesis (Novozymes) B'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.

Novonesis (Novozymes) B's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Novonesis (Novozymes) B's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Novonesis (Novozymes) B's Beneish M-Score falls into.

Novonesis (Novozymes) B 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 Novonesis (Novozymes) B for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.8478

0.528 * 0.9971

0.404 * 2.9926

0.892 * 0.7741

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9865

4.679 * -0.014104

0.327 * 0.6772

-1.06

This Year (Jun24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $862 Mil.
Revenue was 0 + 681.664 + 636.305 + 613.503 = $1,931 Mil.
Gross Profit was 0 + 368.04 + 342.428 + 339.848 = $1,050 Mil.
Total Current Assets was $1,946 Mil.
Total Assets was $16,418 Mil.
Property, Plant and Equipment(Net PPE) was $3,085 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $354 Mil.
Total Current Liabilities was $1,755 Mil.
Long-Term Debt & Capital Lease Obligation was $1,154 Mil.
Net Income was 0 + 103.541 + 133.658 + 88.163 = $325 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0 + 166.04 + 226.477 + 164.395 = $557 Mil.

Total Receivables was $603 Mil.
Revenue was 664.454 + 640.299 + 581.43 + 608.94 = $2,495 Mil.
Gross Profit was 359.751 + 342.506 + 312.617 + 338 = $1,353 Mil.
Total Current Assets was $1,378 Mil.
Total Assets was $4,065 Mil.
Property, Plant and Equipment(Net PPE) was $1,745 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $464 Mil.
Total Current Liabilities was $1,023 Mil.
Long-Term Debt & Capital Lease Obligation was $41 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)
	=	(862.002 / 1931.472)	/	(602.651 / 2495.123)
	=	0.446293	/	0.241532
	=	1.8478

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)
	=	(1352.874 / 2495.123)	/	(1050.316 / 1931.472)
	=	0.542207	/	0.54379
	=	0.9971

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 - (1945.748 + 3085.361) / 16417.869)	/	(1 - (1378.495 + 1744.57) / 4065.2)
	=	0.693559	/	0.231756
	=	2.9926

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
	=	1931.472	/	2495.123
	=	0.7741

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))
	=	(0 / (0 + 1744.57))	/	(0 / (0 + 3085.361))
	=	0	/	0
	=	1

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)
	=	(354.271 / 1931.472)	/	(463.917 / 2495.123)
	=	0.18342	/	0.18593
	=	0.9865

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)
	=	((1154.467 + 1755.221) / 16417.869)	/	((41.106 + 1022.768) / 4065.2)
	=	0.177227	/	0.261703
	=	0.6772

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
	=	(325.362 - 0	-	556.912)	/	16417.869
	=	-0.014104

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.

Novonesis (Novozymes) B has a M-score of -1.06 signals that the company is likely to be a manipulator.

Novonesis (Novozymes) B Beneish M-Score Related Terms

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Novonesis (Novozymes) B Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

NVZMY:USA NSISBc:UK 0Q4U:UK NSIS B:Denmark NZM2:Germany

Address

Krogshoejvej 36, Bagsvaerd, DNK, 2880

Website

https://www.novozymes.com

Novonesis was formed in 2024 through the merger of Novozymes and Chr. Hansen. Following the merger, the company became the world leader in industrial enzymes and microbial solutions, with a nearly 50% market share in both. The firm supplies a wide range of industry groups: household care, food and beverages, bioenergy, agriculture and feed, technical and pharmaceuticals. Its biological solutions create value for its customers by improving yield efficiency and performance, while saving energy and generating less waste. The company is headquartered in Denmark, employs around 10,000 people, and works across more than 30 research and development and application centers and 23 manufacturing sites.