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Ferro (FOE) Beneish M-Score : 0.00 (As of May. 09, 2024)


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What is Ferro Beneish M-Score?

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.

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

During the past 13 years, the highest Beneish M-Score of Ferro was 0.00. The lowest was 0.00. And the median was 0.00.


Ferro Beneish M-Score Historical Data

The historical data trend for Ferro'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.

Ferro Beneish M-Score Chart

Ferro Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.12 -3.02 -2.48 -2.24 -1.70

Ferro Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
Beneish M-Score Get a 7-Day Free Trial 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 -2.24 -1.88 -1.85 -1.93 -1.70

Competitive Comparison of Ferro's Beneish M-Score

For the Specialty Chemicals subindustry, Ferro'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.


Ferro's Beneish M-Score Distribution in the Chemicals Industry

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

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



Ferro 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 Ferro 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 * 0.7817+0.528 * 1.0011+0.404 * 0.9778+0.892 * 1.1745+0.115 * 0.9743
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9507+4.679 * 0.15785-0.327 * 0.7117
=-1.70

* 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 (Dec21) TTM:Last Year (Dec20) TTM:
Total Receivables was $192 Mil.
Revenue was 266.347 + 277.228 + 294.331 + 288.358 = $1,126 Mil.
Gross Profit was 71.303 + 83.378 + 94.835 + 95.103 = $345 Mil.
Total Current Assets was $540 Mil.
Total Assets was $1,290 Mil.
Property, Plant and Equipment(Net PPE) was $335 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General, & Admin. Expense(SGA) was $179 Mil.
Total Current Liabilities was $304 Mil.
Long-Term Debt & Capital Lease Obligation was $260 Mil.
Net Income was 14.984 + 10.375 + 15.509 + 107.963 = $149 Mil.
Non Operating Income was 15.785 + 1.91 + -4.939 + -6.252 = $7 Mil.
Cash Flow from Operations was 3.646 + -18.539 + -0.947 + -45.463 = $-61 Mil.
Total Receivables was $209 Mil.
Revenue was 259.95 + 241.877 + 204.801 + 252.326 = $959 Mil.
Gross Profit was 79.108 + 70.166 + 63.744 + 80.738 = $294 Mil.
Total Current Assets was $970 Mil.
Total Assets was $1,961 Mil.
Property, Plant and Equipment(Net PPE) was $345 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General, & Admin. Expense(SGA) was $161 Mil.
Total Current Liabilities was $404 Mil.
Long-Term Debt & Capital Lease Obligation was $802 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)
=(192.142 / 1126.264) / (209.28 / 958.954)
=0.170601 / 0.218238
=0.7817

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)
=(293.756 / 958.954) / (344.619 / 1126.264)
=0.30633 / 0.305984
=1.0011

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 - (539.782 + 334.942) / 1290.024) / (1 - (969.804 + 345.491) / 1960.933)
=0.321932 / 0.32925
=0.9778

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
=1126.264 / 958.954
=1.1745

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))
=(40.289 / (40.289 + 345.491)) / (40.214 / (40.214 + 334.942))
=0.104435 / 0.107193
=0.9743

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)
=(179.343 / 1126.264) / (160.616 / 958.954)
=0.159237 / 0.167491
=0.9507

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)
=((260.159 + 304.149) / 1290.024) / ((801.573 + 403.616) / 1960.933)
=0.43744 / 0.6146
=0.7117

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
=(148.831 - 6.504 - -61.303) / 1290.024
=0.15785

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.

Ferro has a M-score of -1.70 signals that the company is likely to be a manipulator.


Ferro (FOE) Business Description

Traded in Other Exchanges
N/A
Address
6060 Parkland Boulevard, Suite 250, Mayfield Heights, OH, USA, 44124
Ferro corp produces specialty materials sold to manufacturers in various industries. The company operates in two segments: functional coatings and color solutions. Its product portfolio includes frits, porcelain and other glass enamels, glazes, stains, decorating colors, pigments, inks, polishing materials, dielectrics, electronic glasses, and other specialty coatings. The functional coatings segment contributes the majority of the company's revenue. Ferro's products have applications in various markets such as electronics, appliances, automotive, consumer, sanitary, and packaging. Its geographical segments are Europe, the Middle East, and Africa; the United States; Asia-Pacific; and Latin America. EMEA generates the most revenue, closely followed by the U.S.
Executives
Andrew T Henke officer: Chief Accounting Officer 6060 PARKLAND BLVD SUITE 250 MAYFIELD HEIGHTS OH 44124
Allen A Spizzo director 1313 N MARKET ST, WILMINGTON DE 19894
Andrew M Ross director 6060 PARKLAND BLVD, MAYFIELD VILLAGE OH 44124
David A Lorber director C/O FRONTFOUR CAPITAL GROUP LLC, 35 MASON STREET, 4TH FLOOR, GREENWICH CT 06830
Benjamin Schlater officer: Chief Financial Officer C/O FERRO CORPORATION 6060 PARKLAND BLVD SUITE 250 MAYFIELD HEIGHTS OH 44124
Ronald P Vargo director 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Marran H. Ogilvie director 599 LEXINGTON AVENUE, NEW YORK NY 10022
Peter T Thomas officer: Vice President 1000 LAKESIDE AVENUE, CLEVELAND OH 44114
Mark Hugo Duesenberg officer: General Counsel 1000 LAKESIDE CLEVELAND OH 44114
James Barna officer: Chief Accounting Officer C/O FERRO CORPORATION 6060 PARKLAND BLVD, SUITE 250, MAYFIELD HEIGHTS OH 44124
Ann Killian officer: Vice President 1000 LAKESIDE AVENUE CLEVELAND OH 44114
Jeffry N Quinn director 12935 NORTH FORTY DRIVE, SUITE 201, ST. LOUIS MO 63141
Jeffrey L Rutherford officer: V.P and CFO 15885 SPRAGUE RD, STRONGSVILLE OH 44136-1799
Timothy K Pistell director PARKER HANNIFIN CORP, 6035 PARKLAND BLVD, CLEVELAND OH 44112
Kong Peter T M director KULICKE AND SOFFA INDUSTRIES INC., 1005 VIRGINIA DRIVE, FT. WASHINGTON PA 19034