International Flavors & Fragrances Beneish M-Score

: -2.34 (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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

IFF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15 Med: -2.5 Max: 3.34
Current: -2.34

During the past 13 years, the highest Beneish M-Score of International Flavors & Fragrances was 3.34. The lowest was -3.15. And the median was -2.50.

International Flavors & Fragrances Beneish M-Score Historical Data

The historical data trend for International Flavors & Fragrances'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.

International Flavors & Fragrances Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Beneish M-Score

-2.43

-1.84

-2.45

-2.54

-1.36

International Flavors & Fragrances 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																-1.34	-1.33	-1.36	-2.01	-2.34

Competitive Comparison

For the Specialty Chemicals subindustry, International Flavors & Fragrances'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.

Annual Data Quarterly Data

International Flavors & Fragrances Beneish M-Score Distribution

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

* The bar in red indicates where International Flavors & Fragrances's Beneish M-Score falls into.

International Flavors & Fragrances 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 International Flavors & Fragrances for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.6862

0.528 * 0.9694

0.404 * 0.9481

0.892 * 1.5614

0.115 * 0.6134

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8531

4.679 * 0.0021

0.327 * 1.0714

-2.34

This Year (Jun22) TTM:

Last Year (Jun21) TTM:

Total Receivables was $2,476 Mil.
Revenue was 3307 + 3226 + 3031 + 3071 = $12,635 Mil.
Gross Profit was 1136 + 1145 + 981 + 1090 = $4,352 Mil.
Total Current Assets was $7,730 Mil.
Total Assets was $39,304 Mil.
Property, Plant and Equipment(Net PPE) was $4,951 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,196 Mil.
Selling, General, & Admin. Expense(SGA) was $1,801 Mil.
Total Current Liabilities was $4,720 Mil.
Long-Term Debt & Capital Lease Obligation was $11,009 Mil.
Net Income was 107 + 244 + 88 + 194 = $633 Mil.
Non Operating Income was -131 + 14 + 7 + 21 = $-89 Mil.
Cash Flow from Operations was -96 + -4 + 311 + 428 = $639 Mil.

Total Receivables was $2,311 Mil.
Revenue was 3089 + 2465 + 1270 + 1268 = $8,092 Mil.
Gross Profit was 910 + 754 + 514 + 524 = $2,702 Mil.
Total Current Assets was $6,297 Mil.
Total Assets was $40,864 Mil.
Property, Plant and Equipment(Net PPE) was $5,372 Mil.
Depreciation, Depletion and Amortization(DDA) was $728 Mil.
Selling, General, & Admin. Expense(SGA) was $1,352 Mil.
Total Current Liabilities was $3,227 Mil.
Long-Term Debt & Capital Lease Obligation was $12,036 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)
	=	(2476 / 12635)	/	(2311 / 8092)
	=	0.19596359	/	0.28559071
	=	0.6862

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)
	=	(2702 / 8092)	/	(4352 / 12635)
	=	0.33391003	/	0.34444005
	=	0.9694

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 - (7730 + 4951) / 39304)	/	(1 - (6297 + 5372) / 40864)
	=	0.67736108	/	0.71444303
	=	0.9481

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
	=	12635	/	8092
	=	1.5614

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))
	=	(728 / (728 + 5372))	/	(1196 / (1196 + 4951))
	=	0.11934426	/	0.19456646
	=	0.6134

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)
	=	(1801 / 12635)	/	(1352 / 8092)
	=	0.14254056	/	0.1670786
	=	0.8531

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)
	=	((11009 + 4720) / 39304)	/	((12036 + 3227) / 40864)
	=	0.40018828	/	0.37350724
	=	1.0714

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
	=	(633 - -89	-	639)	/	39304
	=	0.0021

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.

International Flavors & Fragrances has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

International Flavors & Fragrances Beneish M-Score Related Terms

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International Flavors & Fragrances Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » International Flavors & Fragrances Inc (NYSE:IFF) » Definitions » Beneish M-Score

Comparable Companies

NYSE:DD NYSE:PPG NYSE:LYB NYSE:ALB NYSE:AVTR NYSE:ECL NYSE:WLK NYSE:EMN NYSE:RPM NYSE:APD NYSE:LIN XPAR:AI NYSE:SHW BOM:500820 XSWX:SIKA XSWX:GIVN XSGO:SQM-B XAMS:DSM SZSE:002466 ADX:BOROUGE

Traded in Other Exchanges

IFFT:USA 0RF3:UK IFF:Germany IFF:Germany IFF:Germany I1FF34:Brazil I1CE34:Brazil IFF:Austria IFF:Argentina

Address

521 West 57th Street, New York, NY, USA, 10019-2960

Website

https://www.iff.com

International Flavors & Fragrances produces ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.

Executives

Clyburn Frank	officer: Chief Executive Officer	2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Bruno Barry A.	director	500 CHARLES EWING BLVD EWING NJ 08628
Richter Glenn R	officer: CFO	3333 BEVERLY ROAD B6 277A HOFFMAN ESTATES IL 60179
Fauchon De Villeplee Christophe	officer: President, Scent	INTERNATIONAL FLAVORS & FRANGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Johnson Jennifer Amy	officer: EVP, General Counsel	INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Strzelecki Angela	officer: President, Pharma Solutions	INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Herriott Simon	officer: President Health & Biosciences	INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Davidson Carol Anthony	director
Heinzel Matthias	director	974 CENTRE ROAD CRP 730 WILMINGTON DE 19805
Gordon Ilene S	director	C/O ARTHUR J. GALLAGHER & CO. TWO PIERCE PLACE ITASCA IL 60143
Schultz Kare	director	5 BASEL STREET, PO BOX 3190 PETACH TIKVA L3 4951033
Boor Kathryn Jean	director	3736 S. MAIN STREET MARION NY 14505
Breen Edward D	director	C/O TYCO INTERNATIONAL (US) INC 9 WEST 57TH ST 43RD FL. NEW YORK NY 10019
Fortmann Kathy Lynn	officer: Divisional CEO, Taste	INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Prast Peter	10 percent owner	AEULESTRASSE5 VADUZ N2 9490