Cummins Beneish M-Score Historical Data
The historical data trend for Cummins'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.
|
Cummins Annual Data
|
|
Trend |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
| Beneish M-Score |
|
|
|
|
|
|
-2.65 |
-2.57 |
-2.84 |
-2.75 |
-2.50 |
|
Cummins 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-2.69 |
-2.54 |
-2.50 |
-2.50 |
-2.49 |
Competitive Comparison
For the Specialty Industrial Machinery subindustry, Cummins'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.
Cummins Beneish M-Score Distribution
For the Industrial Products industry and Industrials sector, Cummins's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Cummins's Beneish M-Score falls into.
Cummins 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 Cummins 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 * 0.9393 | + | 0.528 * 1.0144 | + | 0.404 * 1.0537 | + | 0.892 * 1.0708 | + | 0.115 * 1.0686 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9969 | + | 4.679 * -0.011 | - | 0.327 * 1.0041 |
| = | -2.49 |
* 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 $4,156 Mil.
Revenue was 6586 + 6385 + 5850 + 5968 = $24,789 Mil.
Gross Profit was 1726 + 1532 + 1317 + 1414 = $5,989 Mil.
Total Current Assets was $12,762 Mil.
Total Assets was $24,477 Mil.
Property, Plant and Equipment(Net PPE) was $4,819 Mil.
Depreciation, Depletion and Amortization(DDA) was $653 Mil.
Selling, General, & Admin. Expense(SGA) was $2,437 Mil.
Total Current Liabilities was $7,671 Mil.
Long-Term Debt & Capital Lease Obligation was $3,805 Mil.
Net Income was 702 + 418 + 394 + 534 = $2,048 Mil.
Non Operating Income was 47 + -10 + 109 + 108 = $254 Mil.
Cash Flow from Operations was 599 + 164 + 732 + 569 = $2,064 Mil.
|
Total Receivables was $4,132 Mil.
Revenue was 6111 + 6092 + 5830 + 5118 = $23,151 Mil.
Gross Profit was 1478 + 1486 + 1361 + 1349 = $5,674 Mil.
Total Current Assets was $11,931 Mil.
Total Assets was $22,608 Mil.
Property, Plant and Equipment(Net PPE) was $4,632 Mil.
Depreciation, Depletion and Amortization(DDA) was $677 Mil.
Selling, General, & Admin. Expense(SGA) was $2,283 Mil.
Total Current Liabilities was $6,604 Mil.
Long-Term Debt & Capital Lease Obligation was $3,952 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) |
| = | (4156 / 24789) | / | (4132 / 23151) |
| = | 0.16765501 | / | 0.17848041 |
| | = | 0.9393 |
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) |
| = | (5674 / 23151) | / | (5989 / 24789) |
| = | 0.24508661 | / | 0.2415991 |
| | = | 1.0144 |
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 - (12762 + 4819) / 24477) | / | (1 - (11931 + 4632) / 22608) |
| = | 0.28173387 | / | 0.26738323 |
| | = | 1.0537 |
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 |
| = | 24789 | / | 23151 |
| | = | 1.0708 |
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)) |
| = | (677 / (677 + 4632)) | / | (653 / (653 + 4819)) |
| = | 0.12751931 | / | 0.1193348 |
| | = | 1.0686 |
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) |
| = | (2437 / 24789) | / | (2283 / 23151) |
| = | 0.09830973 | / | 0.09861345 |
| | = | 0.9969 |
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) |
| = | ((3805 + 7671) / 24477) | / | ((3952 + 6604) / 22608) |
| = | 0.46884831 | / | 0.46691437 |
| | = | 1.0041 |
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 |
| = | (2048 - 254 | - | 2064) | / | 24477 |
| | = | -0.011 |
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.
Cummins has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.
My Portfolios
Create New Portfolio
Portfolio Contest
My Gurus
Personalize
Premium Gurus 
0.51(0.23%) Volume: 749,646 4:03PM EDT
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
NYSE:CMI has been successfully added to your 
