Element Solutions Beneish M-Score Historical Data
The historical data trend for Element Solutions'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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Element Solutions Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.43 |
-2.50 |
-2.38 |
-2.60 |
-2.64 |
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Element Solutions Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.60 |
-2.78 |
-2.84 |
-2.76 |
-2.64 |
Competitive Comparison
For the Specialty Chemicals subindustry, Element Solutions'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.
Element Solutions Beneish M-Score Distribution
For the Chemicals industry and Basic Materials sector, Element Solutions's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Element Solutions's Beneish M-Score falls into.
Element Solutions 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 Element Solutions 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 * 1.107 | + | 0.528 * 0.9493 | + | 0.404 * 0.9979 | + | 0.892 * 0.9152 | + | 0.115 * 1.023 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.127 | + | 4.679 * -0.028206 | - | 0.327 * 1.0134 |
| = | -2.64 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $462 Mil.
Revenue was 573.4 + 599.3 + 586.1 + 574.4 = $2,333 Mil.
Gross Profit was 220.3 + 241.9 + 228.5 + 227.8 = $919 Mil.
Total Current Assets was $1,198 Mil.
Total Assets was $4,974 Mil.
Property, Plant and Equipment(Net PPE) was $297 Mil.
Depreciation, Depletion and Amortization(DDA) was $167 Mil.
Selling, General, & Admin. Expense(SGA) was $597 Mil.
Total Current Liabilities was $369 Mil.
Long-Term Debt & Capital Lease Obligation was $1,921 Mil.
Net Income was 77.1 + -31.8 + 29.9 + 42.9 = $118 Mil.
Non Operating Income was -5.6 + -82.2 + 7.4 + 5.2 = $-75 Mil.
Cash Flow from Operations was 108.9 + 87.4 + 83.8 + 53.5 = $334 Mil.
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Total Receivables was $456 Mil.
Revenue was 573.8 + 618.5 + 676.9 + 680.2 = $2,549 Mil.
Gross Profit was 218 + 221.9 + 249.8 + 263 = $953 Mil.
Total Current Assets was $1,189 Mil.
Total Assets was $4,904 Mil.
Property, Plant and Equipment(Net PPE) was $277 Mil.
Depreciation, Depletion and Amortization(DDA) was $161 Mil.
Selling, General, & Admin. Expense(SGA) was $579 Mil.
Total Current Liabilities was $344 Mil.
Long-Term Debt & Capital Lease Obligation was $1,884 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) |
| = | (461.8 / 2333.2) | / | (455.8 / 2549.4) |
| = | 0.197926 | / | 0.178787 |
| | = | 1.107 |
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) |
| = | (952.7 / 2549.4) | / | (918.5 / 2333.2) |
| = | 0.373696 | / | 0.393665 |
| | = | 0.9493 |
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 - (1197.5 + 296.9) / 4974.1) | / | (1 - (1188.7 + 277.2) / 4903.7) |
| = | 0.699564 | / | 0.701062 |
| | = | 0.9979 |
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 |
| = | 2333.2 | / | 2549.4 |
| | = | 0.9152 |
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)) |
| = | (161.3 / (161.3 + 277.2)) | / | (166.7 / (166.7 + 296.9)) |
| = | 0.367845 | / | 0.359577 |
| | = | 1.023 |
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) |
| = | (596.8 / 2333.2) | / | (578.6 / 2549.4) |
| = | 0.255786 | / | 0.226955 |
| | = | 1.127 |
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) |
| = | ((1921 + 369.4) / 4974.1) | / | ((1883.8 + 344.4) / 4903.7) |
| = | 0.460465 | / | 0.454392 |
| | = | 1.0134 |
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 |
| = | (118.1 - -75.2 | - | 333.6) | / | 4974.1 |
| | = | -0.028206 |
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.
Element Solutions has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.
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