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On Holding AG Beneish M-Score

: 0.00 (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.

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

During the past 3 years, the highest Beneish M-Score of On Holding AG was 0.00. The lowest was 0.00. And the median was 0.00.


On Holding AG Beneish M-Score Historical Data

The historical data trend for On Holding AG'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.

On Holding AG Annual Data
Trend Dec19 Dec20 Dec21
Beneish M-Score
- - -

On Holding AG Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison

For the Apparel Retail subindustry, On Holding AG'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.

   

On Holding AG Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, On Holding AG's Beneish M-Score distribution charts can be found below:

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



On Holding AG 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 On Holding AG 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 * 1.0018+0.528 * 1.006+0.404 * 0.553+0.892 * 1.5944+0.115 * 0.6366
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3385+4.679 * -0.0064-0.327 * 0.5403
=-2.11

* 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 $193.8 Mil.
Revenue was 300.62049062049 + 253.58403270927 + 207.49077090119 + 236.27763328999 = $998.0 Mil.
Gross Profit was 165.7781900639 + 131.34710565957 + 121.41042345277 + 142.27134807109 = $560.8 Mil.
Total Current Assets was $1,092.8 Mil.
Total Assets was $1,414.4 Mil.
Property, Plant and Equipment(Net PPE) was $245.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $42.4 Mil.
Selling, General, & Admin. Expense(SGA) was $696.8 Mil.
Total Current Liabilities was $243.3 Mil.
Long-Term Debt & Capital Lease Obligation was $181.7 Mil.
Net Income was 50.657596371882 + 15.43361308371 + -203.01737242128 + 14.079973992198 = $-122.8 Mil.
Non Operating Income was 33.263244691816 + 18.495803744351 + -13.274701411509 + -5.4410489813611 = $33.0 Mil.
Cash Flow from Operations was -65.040197897341 + -67.978265547665 + 27.599348534202 + -41.428261811877 = $-146.8 Mil.
Total Receivables was $121.4 Mil.
Revenue was 192.84203569068 + 150.99268659927 + 139.91445294912 + 142.17619411958 = $625.9 Mil.
Gross Profit was 117.14915179555 + 86.934824693482 + 72.353669518235 + 77.409552956607 = $353.8 Mil.
Total Current Assets was $431.8 Mil.
Total Assets was $700.3 Mil.
Property, Plant and Equipment(Net PPE) was $200.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.7 Mil.
Selling, General, & Admin. Expense(SGA) was $326.5 Mil.
Total Current Liabilities was $216.7 Mil.
Long-Term Debt & Capital Lease Obligation was $172.8 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)
=(193.8455988456 / 997.97292752095) / (121.36483807006 / 625.92536935865)
=0.19423934 / 0.19389666
=1.0018

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)
=(353.84719896387 / 625.92536935865) / (560.80706724733 / 997.97292752095)
=0.56531851 / 0.56194617
=1.006

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 - (1092.7520098949 + 245.93382807669) / 1414.3918779633) / (1 - (431.7669090108 + 200.70940735845) / 700.25776602776)
=0.05352551 / 0.096795
=0.553

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
=997.97292752095 / 625.92536935865
=1.5944

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))
=(20.729480583977 / (20.729480583977 + 200.70940735845)) / (42.402717290121 / (42.402717290121 + 245.93382807669))
=0.09361265 / 0.14705981
=0.6366

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)
=(696.82208665306 / 997.97292752095) / (326.51503459119 / 625.92536935865)
=0.69823746 / 0.5216517
=1.3385

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)
=((181.74706246135 + 243.30447330447) / 1414.3918779633) / ((172.77814496585 + 216.70522141441) / 700.25776602776)
=0.30051893 / 0.5562
=0.5403

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
=(-122.84618897349 - 33.043298043297 - -146.84737672268) / 1414.3918779633
=-0.0064

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.

On Holding AG has a M-score of -2.11 suggests that the company is unlikely to be a manipulator.


On Holding AG Beneish M-Score Related Terms

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On Holding AG Business Description

On Holding AG logo
Traded in Other Exchanges
N/A
Address
Pfingstweidstrasse 106, Zurich, CHE, 8005
On Holding AG is a premium performance sports brand rooted in technology, design, and impact. Its shoe, apparel, and accessories products are designed primarily for athletic use, casual, or leisure purposes. It does not manufacture the products or the raw materials and rely instead on third-party suppliers and contract manufacturers.

On Holding AG Headlines

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