Otis Worldwide Beneish M-Score Historical Data
The historical data trend for Otis Worldwide'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.
Otis Worldwide Beneish M-Score Chart
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Otis Worldwide Annual Data
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Trend |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
-3.02 |
-2.67 |
-2.55 |
-2.55 |
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Otis Worldwide 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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-2.55 |
-2.43 |
-2.42 |
-2.43 |
-2.55 |
Competitive Comparison of Otis Worldwide's Beneish M-Score
For the Specialty Industrial Machinery subindustry, Otis Worldwide'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.
Otis Worldwide's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Otis Worldwide's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Otis Worldwide's Beneish M-Score falls into.
Otis Worldwide 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 Otis Worldwide 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 * 1.0192 | + | 0.528 * 0.9707 | + | 0.404 * 0.9961 | + | 0.892 * 1.0383 | + | 0.115 * 0.9729 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0292 | + | 4.679 * -0.02135 | - | 0.327 * 0.9984 |
| = | -2.55 |
* 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 $4,255 Mil.
Revenue was 3620 + 3523 + 3720 + 3346 = $14,209 Mil.
Gross Profit was 1068 + 1046 + 1083 + 996 = $4,193 Mil.
Total Current Assets was $6,400 Mil.
Total Assets was $10,117 Mil.
Property, Plant and Equipment(Net PPE) was $1,143 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General, & Admin. Expense(SGA) was $1,884 Mil.
Total Current Liabilities was $6,479 Mil.
Long-Term Debt & Capital Lease Obligation was $7,158 Mil.
Net Income was 323 + 376 + 376 + 331 = $1,406 Mil.
Non Operating Income was -4 + 0 + -1 + 0 = $-5 Mil.
Cash Flow from Operations was 597 + 306 + 446 + 278 = $1,627 Mil.
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Total Receivables was $4,021 Mil.
Revenue was 3439 + 3344 + 3488 + 3414 = $13,685 Mil.
Gross Profit was 960 + 971 + 983 + 1006 = $3,920 Mil.
Total Current Assets was $6,143 Mil.
Total Assets was $9,819 Mil.
Property, Plant and Equipment(Net PPE) was $1,168 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General, & Admin. Expense(SGA) was $1,763 Mil.
Total Current Liabilities was $6,843 Mil.
Long-Term Debt & Capital Lease Obligation was $6,413 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) |
| = | (4255 / 14209) | / | (4021 / 13685) |
| = | 0.299458 | / | 0.293825 |
| | = | 1.0192 |
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) |
| = | (3920 / 13685) | / | (4193 / 14209) |
| = | 0.286445 | / | 0.295095 |
| | = | 0.9707 |
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 - (6400 + 1143) / 10117) | / | (1 - (6143 + 1168) / 9819) |
| = | 0.254423 | / | 0.255423 |
| | = | 0.9961 |
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 |
| = | 14209 | / | 13685 |
| | = | 1.0383 |
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)) |
| = | (191 / (191 + 1168)) | / | (193 / (193 + 1143)) |
| = | 0.140545 | / | 0.144461 |
| | = | 0.9729 |
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) |
| = | (1884 / 14209) | / | (1763 / 13685) |
| = | 0.132592 | / | 0.128827 |
| | = | 1.0292 |
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) |
| = | ((7158 + 6479) / 10117) | / | ((6413 + 6843) / 9819) |
| = | 1.347929 | / | 1.350036 |
| | = | 0.9984 |
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 |
| = | (1406 - -5 | - | 1627) | / | 10117 |
| | = | -0.02135 |
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.
Otis Worldwide has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.
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