NewMarket Beneish M-Score Historical Data
The historical data trend for NewMarket'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.
NewMarket Beneish M-Score Chart
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NewMarket Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.66 |
-2.62 |
-2.25 |
-1.93 |
-2.95 |
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NewMarket 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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-1.93 |
-2.33 |
-2.68 |
-2.85 |
-2.95 |
Competitive Comparison of NewMarket's Beneish M-Score
For the Specialty Chemicals subindustry, NewMarket'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.
NewMarket's Beneish M-Score Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, NewMarket's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where NewMarket's Beneish M-Score falls into.
NewMarket 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 NewMarket 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 * 0.9764 | + | 0.528 * 0.8092 | + | 0.404 * 1.1651 | + | 0.892 * 0.976 | + | 0.115 * 1.0507 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0695 | + | 4.679 * -0.100151 | - | 0.327 * 0.7539 |
| = | -2.95 |
* 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 $432 Mil.
Revenue was 643.35 + 667.15 + 685.13 + 702.789 = $2,698 Mil.
Gross Profit was 177.126 + 201.705 + 195.638 + 198.044 = $773 Mil.
Total Current Assets was $1,040 Mil.
Total Assets was $2,309 Mil.
Property, Plant and Equipment(Net PPE) was $760 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General, & Admin. Expense(SGA) was $151 Mil.
Total Current Liabilities was $364 Mil.
Long-Term Debt & Capital Lease Obligation was $719 Mil.
Net Income was 80.41 + 111.247 + 99.624 + 97.583 = $389 Mil.
Non Operating Income was 10.395 + 11.278 + 10.723 + 10.88 = $43 Mil.
Cash Flow from Operations was 171.607 + 142.826 + 152.475 + 109.915 = $577 Mil.
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Total Receivables was $454 Mil.
Revenue was 682.559 + 696.049 + 723.639 + 662.552 = $2,765 Mil.
Gross Profit was 179.551 + 148.307 + 157.476 + 155.163 = $640 Mil.
Total Current Assets was $1,192 Mil.
Total Assets was $2,407 Mil.
Property, Plant and Equipment(Net PPE) was $759 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General, & Admin. Expense(SGA) was $145 Mil.
Total Current Liabilities was $424 Mil.
Long-Term Debt & Capital Lease Obligation was $1,073 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) |
| = | (432.349 / 2698.419) | / | (453.692 / 2764.799) |
| = | 0.160223 | / | 0.164096 |
| | = | 0.9764 |
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) |
| = | (640.497 / 2764.799) | / | (772.513 / 2698.419) |
| = | 0.231661 | / | 0.286284 |
| | = | 0.8092 |
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 - (1039.57 + 760.341) / 2308.871) | / | (1 - (1192.125 + 759.308) / 2406.818) |
| = | 0.220437 | / | 0.189206 |
| | = | 1.1651 |
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 |
| = | 2698.419 | / | 2764.799 |
| | = | 0.976 |
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)) |
| = | (82.285 / (82.285 + 759.308)) | / | (78.01 / (78.01 + 760.341)) |
| = | 0.097773 | / | 0.093052 |
| | = | 1.0507 |
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) |
| = | (151.47 / 2698.419) | / | (145.106 / 2764.799) |
| = | 0.056133 | / | 0.052483 |
| | = | 1.0695 |
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) |
| = | ((718.524 + 364.164) / 2308.871) | / | ((1073.138 + 423.887) / 2406.818) |
| = | 0.468925 | / | 0.621993 |
| | = | 0.7539 |
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 |
| = | (388.864 - 43.276 | - | 576.823) | / | 2308.871 |
| | = | -0.100151 |
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.
NewMarket has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.
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