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 Beneish M-Score Chart
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Cummins Annual Data
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Trend |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
Dec24 |
| Beneish M-Score |
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-2.75 |
-2.51 |
-2.23 |
-2.69 |
-2.42 |
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Cummins Quarterly Data
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Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
Dec24 |
Mar25 |
| Beneish M-Score |
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-2.81 |
-2.58 |
-2.41 |
-2.42 |
-2.25 |
Competitive Comparison of Cummins's Beneish M-Score
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's Beneish M-Score Distribution in the Industrial Products Industry
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 * 1.0441 | + | 0.528 * 0.9618 | + | 0.404 * 1.0093 | + | 0.892 * 0.9958 | + | 0.115 * 1.0409 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9458 | + | 4.679 * 0.036673 | - | 0.327 * 0.9231 |
| = | -2.25 |
* 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 (Mar25) TTM: | Last Year (Mar24) TTM: |
Total Receivables was $5,680 Mil.
Revenue was 8174 + 8447 + 8456 + 8796 = $33,873 Mil.
Gross Profit was 2155 + 2034 + 2171 + 2193 = $8,553 Mil.
Total Current Assets was $15,540 Mil.
Total Assets was $32,531 Mil.
Property, Plant and Equipment(Net PPE) was $6,942 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,069 Mil.
Selling, General, & Admin. Expense(SGA) was $3,192 Mil.
Total Current Liabilities was $11,575 Mil.
Long-Term Debt & Capital Lease Obligation was $5,210 Mil.
Net Income was 824 + 418 + 809 + 726 = $2,777 Mil.
Non Operating Income was 114 + 53 + 116 + 93 = $376 Mil.
Cash Flow from Operations was -3 + 1422 + 640 + -851 = $1,208 Mil.
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Total Receivables was $5,463 Mil.
Revenue was 8403 + 8543 + 8431 + 8638 = $34,015 Mil.
Gross Profit was 2041 + 2001 + 2071 + 2148 = $8,261 Mil.
Total Current Assets was $15,620 Mil.
Total Assets was $31,827 Mil.
Property, Plant and Equipment(Net PPE) was $6,466 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,043 Mil.
Selling, General, & Admin. Expense(SGA) was $3,389 Mil.
Total Current Liabilities was $11,686 Mil.
Long-Term Debt & Capital Lease Obligation was $6,103 Mil.
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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) |
| = | (5680 / 33873) | / | (5463 / 34015) |
| = | 0.167685 | / | 0.160606 |
| | = | 1.0441 |
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) |
| = | (8261 / 34015) | / | (8553 / 33873) |
| = | 0.242863 | / | 0.252502 |
| | = | 0.9618 |
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 - (15540 + 6942) / 32531) | / | (1 - (15620 + 6466) / 31827) |
| = | 0.308905 | / | 0.306061 |
| | = | 1.0093 |
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 |
| = | 33873 | / | 34015 |
| | = | 0.9958 |
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)) |
| = | (1043 / (1043 + 6466)) | / | (1069 / (1069 + 6942)) |
| = | 0.1389 | / | 0.133442 |
| | = | 1.0409 |
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) |
| = | (3192 / 33873) | / | (3389 / 34015) |
| = | 0.094234 | / | 0.099633 |
| | = | 0.9458 |
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) |
| = | ((5210 + 11575) / 32531) | / | ((6103 + 11686) / 31827) |
| = | 0.515969 | / | 0.558928 |
| | = | 0.9231 |
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 |
| = | (2777 - 376 | - | 1208) | / | 32531 |
| | = | 0.036673 |
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 -2.25 suggests that the company is unlikely to be a manipulator.
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