GURUFOCUS.COM » STOCK LIST » USA » NYSE » International Flavors & Fragrances Inc (NYSE:IFF) » Definitions » Beneish M-Score
Switch to:

International Flavors & Fragrances Beneish M-Score

: -2.34 (As of Today)
View and export this data going back to 1964. Start your Free Trial

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
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -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 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 -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.

   

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:

M=-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

* 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 (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

Thank you for viewing the detailed overview of International Flavors & Fragrances's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


International Flavors & Fragrances Business Description

International Flavors & Fragrances logo
Address
521 West 57th Street, New York, NY, USA, 10019-2960
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

International Flavors & Fragrances Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)