Westlake Beneish M-Score Historical Data
The historical data trend for Westlake'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.
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Westlake Annual Data
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Trend |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
| Beneish M-Score |
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-2.44 |
-2.58 |
-2.48 |
-2.61 |
-2.26 |
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Westlake Quarterly Data
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Jun17 |
Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
| Beneish M-Score |
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-2.80 |
-2.63 |
-2.72 |
-2.26 |
-2.01 |
Competitive Comparison
For the Specialty Chemicals subindustry, Westlake'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.
Westlake Beneish M-Score Distribution
For the Chemicals industry and Basic Materials sector, Westlake's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Westlake's Beneish M-Score falls into.
Westlake 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 Westlake 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 * 1.0428 | + | 0.528 * 0.4971 | + | 0.404 * 1.3196 | + | 0.892 * 1.6997 | + | 0.115 * 1.0361 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.7781 | + | 4.679 * -0.0162 | - | 0.327 * 1.0787 |
| = | -2.01 |
* 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 (Mar22) TTM: | Last Year (Mar21) TTM: |
Total Receivables was $2,352 Mil.
Revenue was 4056 + 3507 + 3055 + 2859 = $13,477 Mil.
Gross Profit was 1285 + 1096 + 1018 + 872 = $4,271 Mil.
Total Current Assets was $5,405 Mil.
Total Assets was $19,741 Mil.
Property, Plant and Equipment(Net PPE) was $8,907 Mil.
Depreciation, Depletion and Amortization(DDA) was $902 Mil.
Selling, General, & Admin. Expense(SGA) was $615 Mil.
Total Current Liabilities was $2,550 Mil.
Long-Term Debt & Capital Lease Obligation was $5,416 Mil.
Net Income was 756 + 644 + 607 + 522 = $2,529 Mil.
Non Operating Income was 0 + 3 + 7 + 10 = $20 Mil.
Cash Flow from Operations was 700 + 757 + 755 + 617 = $2,829 Mil.
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Total Receivables was $1,327 Mil.
Revenue was 2357 + 1965 + 1898 + 1709 = $7,929 Mil.
Gross Profit was 509 + 323 + 248 + 169 = $1,249 Mil.
Total Current Assets was $3,734 Mil.
Total Assets was $14,050 Mil.
Property, Plant and Equipment(Net PPE) was $7,388 Mil.
Depreciation, Depletion and Amortization(DDA) was $778 Mil.
Selling, General, & Admin. Expense(SGA) was $465 Mil.
Total Current Liabilities was $1,326 Mil.
Long-Term Debt & Capital Lease Obligation was $3,930 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) |
| = | (2352 / 13477) | / | (1327 / 7929) |
| = | 0.17451955 | / | 0.16736032 |
| | = | 1.0428 |
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) |
| = | (1249 / 7929) | / | (4271 / 13477) |
| = | 0.15752302 | / | 0.31691029 |
| | = | 0.4971 |
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 - (5405 + 8907) / 19741) | / | (1 - (3734 + 7388) / 14050) |
| = | 0.2750114 | / | 0.20839858 |
| | = | 1.3196 |
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 |
| = | 13477 | / | 7929 |
| | = | 1.6997 |
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)) |
| = | (778 / (778 + 7388)) | / | (902 / (902 + 8907)) |
| = | 0.09527308 | / | 0.09195637 |
| | = | 1.0361 |
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) |
| = | (615 / 13477) | / | (465 / 7929) |
| = | 0.0456333 | / | 0.05864548 |
| | = | 0.7781 |
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) |
| = | ((5416 + 2550) / 19741) | / | ((3930 + 1326) / 14050) |
| = | 0.40352566 | / | 0.37409253 |
| | = | 1.0787 |
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 |
| = | (2529 - 20 | - | 2829) | / | 19741 |
| | = | -0.0162 |
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.
Westlake has a M-score of -2.01 suggests that the company is unlikely to be a manipulator.
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