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Welbilt Beneish M-Score

: -2.22 (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 -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:WBT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.93   Med: -1.05   Max: 0.26
Current: -2.22

-3.93
0.26

During the past 9 years, the highest Beneish M-Score of Welbilt was 0.26. The lowest was -3.93. And the median was -1.05.


Welbilt Beneish M-Score Historical Data

The historical data trend for Welbilt'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.

Welbilt Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.32 -0.98 -0.90 -1.19 -2.53

Welbilt Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -2.70 -2.53 -2.59 -2.10 -2.22

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Welbilt'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.

   

Welbilt Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, Welbilt's Beneish M-Score distribution charts can be found below:

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



Welbilt 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 Welbilt 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 * 1.1053+0.528 * 0.9424+0.404 * 0.9374+0.892 * 1.1882+0.115 * 1.0218
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8935+4.679 * 0.0033-0.327 * 0.9617
=-2.22

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $213 Mil.
Revenue was 411.5 + 395.6 + 316.8 + 320 = $1,444 Mil.
Gross Profit was 147.5 + 144.9 + 117.8 + 121.5 = $532 Mil.
Total Current Assets was $660 Mil.
Total Assets was $2,240 Mil.
Property, Plant and Equipment(Net PPE) was $178 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General, & Admin. Expense(SGA) was $315 Mil.
Total Current Liabilities was $357 Mil.
Long-Term Debt & Capital Lease Obligation was $1,410 Mil.
Net Income was 24.9 + 23.7 + 7.9 + 20.2 = $77 Mil.
Non Operating Income was -0.8 + -2.9 + -3.2 + 0.2 = $-7 Mil.
Cash Flow from Operations was 13.5 + 37.1 + -16.4 + 41.9 = $76 Mil.
Accounts Receivable was $162 Mil.
Revenue was 298.5 + 206 + 328.9 + 381.8 = $1,215 Mil.
Gross Profit was 105.3 + 68.4 + 114.8 + 133.2 = $422 Mil.
Total Current Assets was $545 Mil.
Total Assets was $2,151 Mil.
Property, Plant and Equipment(Net PPE) was $169 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General, & Admin. Expense(SGA) was $297 Mil.
Total Current Liabilities was $289 Mil.
Long-Term Debt & Capital Lease Obligation was $1,476 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(212.5 / 1443.9) / (161.8 / 1215.2)
=0.14717086 / 0.13314681
=1.1053

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)
=(421.7 / 1215.2) / (531.7 / 1443.9)
=0.34702107 / 0.3682388
=0.9424

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 - (660.2 + 177.6) / 2240.2) / (1 - (545.2 + 169.2) / 2150.8)
=0.62601553 / 0.66784452
=0.9374

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
=1443.9 / 1215.2
=1.1882

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))
=(62.2 / (62.2 + 169.2)) / (63.4 / (63.4 + 177.6))
=0.26879862 / 0.26307054
=1.0218

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)
=(315.3 / 1443.9) / (297 / 1215.2)
=0.21836692 / 0.24440421
=0.8935

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)
=((1410.4 + 357.4) / 2240.2) / ((1476.2 + 288.6) / 2150.8)
=0.78912597 / 0.8205319
=0.9617

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
=(76.7 - -6.7 - 76.1) / 2240.2
=0.0033

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.

Welbilt has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.


Welbilt Business Description

Welbilt logo
Industry
Industrials » Industrial Products NAICS : 333241 SIC : 3556
Traded in Other Exchanges
Address
2227 Welbilt Boulevard, New Port Richey, FL, USA, 34655
Welbilt Inc is engaged in the designing, manufacturing and supplying of equipment for the commercial foodservice market which is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, resorts, cruise ships, caterers, supermarkets, convenience stores, hospitals, schools, and other institutions. The group offers various products such as grills, induction cookers braising pans, steamers, and others under the brands name such as Cleveland, Convotherm, Delfield, Frymaster, and others. The firm's geographical segments include Americas, EMEA, and APAC. It generates a majority of its revenue from the Americas.
Executives
Agard Martin D. officer: EVP Chief Financial Officer 3000 JOHN DEERE ROAD TOANO VA 23168
Perez Kimberly Ann officer: VP, Chief Accounting Officer 4211 W. BOY SCOUT BLVD. TAMPA FL 33607
Fields Janice L director 800 NORTH LINDBERGH BLVD. ST. LOUIS MO 63167
Egnotovich Cynthia M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EGNOTOVICH CYNTHIA M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Sheffer Richard James officer: VP, IR, Risk Mgmt, Treasurer MANITOWOC FOODSERVICE INC. 2227 WELBILT BLVD. NEW PORT RICHEY FL 34655
Palm Jamie E officer: VP, Corp Controller, CAO 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Caron Richard N. officer: EVP Chief Innovation Officer MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Gudenkauf Jennifer officer: EVP & CHRO 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Johnson William director, officer: President and CEO 3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515
Chow Joan Kai director 215 W DIEHL ROAD NAPERVILLE IL 60563
Horn Joel H. officer: EVP, Gen Counsel and Corp Secy 2227 WELBILT BOULEVARD NEW PORT RICHEY FL 34655
Davis Thomas Dale director MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Gamache Brian R director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: GAMACHE BRIAN R a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Matosevic Josef officer: EVP Chief Operating Officer 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243
Langham Andrew director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160

Welbilt Headlines

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