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Deere Beneish M-Score

: -2.37 (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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56   Med: -2.52   Max: -1.86
Current: -2.37

During the past 13 years, the highest Beneish M-Score of Deere was -1.86. The lowest was -3.56. And the median was -2.52.


Deere Beneish M-Score Historical Data

The historical data trend for Deere'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.

Deere Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.27 -2.02 -2.47 -3.02 -2.47

Deere Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22
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 -2.88 -2.73 -2.67 -2.47 -2.37

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Deere'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.

   

Deere Beneish M-Score Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Beneish M-Score distribution charts can be found below:

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



Deere 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 Deere 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 * 0.8041+0.528 * 1.0205+0.404 * 1.0609+0.892 * 1.1987+0.115 * 1.0172
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7907+4.679 * 0.0077-0.327 * 0.9903
=-2.37

* 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 (Jan22) TTM:Last Year (Jan21) TTM:
Accounts Receivable was $4,855 Mil.
Revenue was 9569 + 10885 + 11527 + 12058 = $44,039 Mil.
Gross Profit was 2645 + 2664 + 3709 + 3862 = $12,880 Mil.
Total Current Assets was $56,640 Mil.
Total Assets was $79,614 Mil.
Property, Plant and Equipment(Net PPE) was $12,289 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,998 Mil.
Selling, General, & Admin. Expense(SGA) was $3,447 Mil.
Total Current Liabilities was $25,123 Mil.
Long-Term Debt & Capital Lease Obligation was $32,838 Mil.
Net Income was 903 + 1283 + 1667 + 1790 = $5,643 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -2553 + 3412 + 2528 + 1643 = $5,030 Mil.
Accounts Receivable was $5,037 Mil.
Revenue was 9112 + 9450 + 8925 + 9253 = $36,740 Mil.
Gross Profit was 3036 + 2513 + 2800 + 2617 = $10,966 Mil.
Total Current Assets was $53,160 Mil.
Total Assets was $75,480 Mil.
Property, Plant and Equipment(Net PPE) was $12,771 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,118 Mil.
Selling, General, & Admin. Expense(SGA) was $3,637 Mil.
Total Current Liabilities was $22,716 Mil.
Long-Term Debt & Capital Lease Obligation was $32,772 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(4855 / 44039) / (5037 / 36740)
=0.11024319 / 0.13709853
=0.8041

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)
=(10966 / 36740) / (12880 / 44039)
=0.29847578 / 0.29246804
=1.0205

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 - (56640 + 12289) / 79614) / (1 - (53160 + 12771) / 75480)
=0.13421006 / 0.12651033
=1.0609

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
=44039 / 36740
=1.1987

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))
=(2118 / (2118 + 12771)) / (1998 / (1998 + 12289))
=0.14225267 / 0.13984741
=1.0172

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)
=(3447 / 44039) / (3637 / 36740)
=0.07827153 / 0.09899292
=0.7907

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)
=((32838 + 25123) / 79614) / ((32772 + 22716) / 75480)
=0.72802522 / 0.73513514
=0.9903

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
=(5643 - 0 - 5030) / 79614
=0.0077

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.

Deere has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.


Deere Business Description

Deere logo
Industry
Address
One John Deere Place, Moline, IL, USA, 61265
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through a robust dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
Executives
Howze Marc A officer: Group Pres., Life Sol & CAO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Reed Cory J officer: Pres, Ag & Turf Prod & Prec Ag DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Von Pentz Markwart officer: PresAg Turf Small Ag & Turf DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Kalathur Rajesh officer: President, JD Financial & CIO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Stone John H officer: Pres., WW Const & For & Pow Sy ONE JOHN DEERE PLACE MOLINE IL 61265
Field James M. officer: Pres., C&F Division DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Erwin Tami A. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Holliday Charles O Jr director 1007 MARKET ST WILMINGTON DE 19898
Jones Clayton M director 400 COLLINS ROAD NE CEDAR RAPIDS IA 52498
Smith Sherry M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SMITH SHERRY M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Page Gregory R director EATON CENTER 1111 SUPERIOR AVENUE CLEVELAND OH 44114
Heuberger Alan Cletus director 2365 CARILLON POINT KIRKLAND WA 98033
Talton Sheila director C/O ACCO BRANDS CORPORATION 300 TOWER PARKWAY LINCOLNSHIRE IL 60201
Jain Dipak C director 130 EAST RANDOLPH DRIVE CHICAGO IL 60601
Stockton Dmitri L director 777 LONG RIDGE ROAD SYNCHRONY FINANCIAL C/O CORP. SECRETARY STAMFORD CT 06902

Deere Headlines

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