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Albemarle Beneish M-Score

: -1.50 (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 -1.5 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ALB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.35   Med: -2.55   Max: -0.8
Current: -1.5

During the past 13 years, the highest Beneish M-Score of Albemarle was -0.80. The lowest was -3.35. And the median was -2.55.


Albemarle Beneish M-Score Historical Data

The historical data trend for Albemarle'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.

Albemarle 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 -2.37 -2.36 -2.61 -2.72 -2.26

Albemarle 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 -2.70 -2.48 -2.26 -2.30 -1.50

Competitive Comparison

For the Specialty Chemicals subindustry, Albemarle'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.

   

Albemarle Beneish M-Score Distribution

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

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



Albemarle 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 Albemarle 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 * 1.5774+0.528 * 0.9133+0.404 * 0.8148+0.892 * 1.3415+0.115 * 1.0255
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8012+4.679 * 0.078-0.327 * 1.4201
=-1.50

* 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 $1,087 Mil.
Revenue was 1479.593 + 1127.728 + 894.204 + 830.566 = $4,332 Mil.
Gross Profit was 580.424 + 449.03 + 236.594 + 249.273 = $1,515 Mil.
Total Current Assets was $3,350 Mil.
Total Assets was $12,520 Mil.
Property, Plant and Equipment(Net PPE) was $6,208 Mil.
Depreciation, Depletion and Amortization(DDA) was $268 Mil.
Selling, General, & Admin. Expense(SGA) was $468 Mil.
Total Current Liabilities was $1,782 Mil.
Long-Term Debt & Capital Lease Obligation was $3,206 Mil.
Net Income was 406.773 + 253.383 + -3.824 + -392.781 = $264 Mil.
Non Operating Income was 8.767 + 7.096 + -103.923 + -644.18 = $-732 Mil.
Cash Flow from Operations was -145.865 + 206.176 + -146.329 + 104.733 = $19 Mil.
Total Receivables was $513 Mil.
Revenue was 773.896 + 829.291 + 879.147 + 746.868 = $3,229 Mil.
Gross Profit was 248.417 + 263.687 + 265.42 + 254.056 = $1,032 Mil.
Total Current Assets was $2,151 Mil.
Total Assets was $10,797 Mil.
Property, Plant and Equipment(Net PPE) was $5,511 Mil.
Depreciation, Depletion and Amortization(DDA) was $244 Mil.
Selling, General, & Admin. Expense(SGA) was $436 Mil.
Total Current Liabilities was $985 Mil.
Long-Term Debt & Capital Lease Obligation was $2,044 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)
=(1086.624 / 4332.091) / (513.478 / 3229.202)
=0.2508313 / 0.1590108
=1.5774

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)
=(1031.58 / 3229.202) / (1515.321 / 4332.091)
=0.31945354 / 0.34978974
=0.9133

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 - (3350.104 + 6208.024) / 12520.405) / (1 - (2151.354 + 5510.599) / 10796.926)
=0.23659594 / 0.29035792
=0.8148

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
=4332.091 / 3229.202
=1.3415

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))
=(244.132 / (244.132 + 5510.599)) / (267.884 / (267.884 + 6208.024))
=0.04242283 / 0.04136625
=1.0255

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)
=(468.289 / 4332.091) / (435.704 / 3229.202)
=0.10809768 / 0.13492621
=0.8012

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)
=((3205.73 + 1781.762) / 12520.405) / ((2043.794 + 984.928) / 10796.926)
=0.39834909 / 0.28051707
=1.4201

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
=(263.551 - -732.24 - 18.715) / 12520.405
=0.078

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.

Albemarle has a M-score of -1.50 signals that the company is likely to be a manipulator.


Albemarle Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Albemarle's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Albemarle Business Description

Albemarle logo
Address
4250 Congress Street, Suite 900, Charlotte, NC, USA, 28209
Albemarle is the world's largest lithium producer. Our outlook for robust lithium demand is predicated upon increased demand for electric vehicle batteries. Albemarle produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. Albemarle is also a global leader in the production of bromine, used in flame retardants. The company is also a major producer of oil refining catalysts.
Executives
Cramer Ralf Hans director MIERENDORSFSTRASSE 26 BENSHEIM 2M 64625
Anderson Melissa H. officer: SVP, Chief HR Officer ALBEMARLE CORPORATION 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Barichivich John Clarence Iii officer: VP, Controller & CAO 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Minor Glenda J director 17000 ROTUNDA DRIVE DEARBORN MI 48120
Van Deursen Holly director 21211 NORDHOFF STREET CHATSWORTH CA 91311
Johnson Netha N. officer: President, Bromine Specialties 3489 CRESTMOOR DRIVE WOODBURY MN 55125
Crawford Raphael Goszcz officer: President, Catalysts 4311 GREENBRIAR HILLS PLANTATION RD CHARLOTTE NC 28277
Marlow Deeanne J officer: SVP, Chief HR Officer 4250 CONGRESS STREET SUITE 900 CHARLOTTE NC 28209
Norris Eric officer: President, Lithium 1519 AUDUBON ROAD CHARLOTTE NC 28211
Ryan David Terrence officer: VP, Corp. Strategy & IR 8904 HIGHFIELD ROAD RICHMOND VA 23229
Maine Douglas L director ALBEMARLE CORP 451 FLORIDA ST BATON ROUGE LA 70801
Hernandez William H director 5500 WAYZATA BLVD. SUITE 800 GOLDEN VALLEY MN 55416
Wolff Alejandro Daniel director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Masters J Kent director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Brlas Laurie director C/O ALBEMARLE CORPORATION 4250 CONGRESS ST STE 900 CHARLOTTE NC 28209

Albemarle Headlines

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