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Waste Management Beneish M-Score

: -2.81 (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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37   Med: -2.69   Max: 5.38
Current: -2.81

During the past 13 years, the highest Beneish M-Score of Waste Management was 5.38. The lowest was -3.37. And the median was -2.69.


Waste Management Beneish M-Score Historical Data

The historical data trend for Waste Management'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.

Waste Management Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.86 -2.89 -2.52 -2.84

Waste Management Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.50 -2.61 -2.84 -2.80 -2.81

Competitive Comparison

For the Waste Management subindustry, Waste Management'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.

   

Waste Management Beneish M-Score Distribution

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

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



Waste Management 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 Waste Management 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 * 0.8744+0.528 * 1.0405+0.404 * 0.9686+0.892 * 1.1523+0.115 * 0.9321
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9167+4.679 * -0.0767-0.327 * 1.0337
=-2.81

* 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 $2,665 Mil.
Revenue was 5027 + 4661 + 4678 + 4665 = $19,031 Mil.
Gross Profit was 1885 + 1758 + 1723 + 1759 = $7,125 Mil.
Total Current Assets was $3,987 Mil.
Total Assets was $30,128 Mil.
Property, Plant and Equipment(Net PPE) was $14,382 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,017 Mil.
Selling, General, & Admin. Expense(SGA) was $1,895 Mil.
Total Current Liabilities was $3,722 Mil.
Long-Term Debt & Capital Lease Obligation was $14,046 Mil.
Net Income was 587 + 513 + 506 + 538 = $2,144 Mil.
Non Operating Income was -21 + -29 + 4 + 20 = $-26 Mil.
Cash Flow from Operations was 1047 + 1258 + 991 + 1184 = $4,480 Mil.
Total Receivables was $2,645 Mil.
Revenue was 4476 + 4112 + 4067 + 3861 = $16,516 Mil.
Gross Profit was 1740 + 1598 + 1567 + 1529 = $6,434 Mil.
Total Current Assets was $3,226 Mil.
Total Assets was $29,037 Mil.
Property, Plant and Equipment(Net PPE) was $14,110 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,827 Mil.
Selling, General, & Admin. Expense(SGA) was $1,794 Mil.
Total Current Liabilities was $3,683 Mil.
Long-Term Debt & Capital Lease Obligation was $12,883 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)
=(2665 / 19031) / (2645 / 16516)
=0.14003468 / 0.16014774
=0.8744

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)
=(6434 / 16516) / (7125 / 19031)
=0.38956164 / 0.37438915
=1.0405

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 - (3987 + 14382) / 30128) / (1 - (3226 + 14110) / 29037)
=0.39030138 / 0.40296863
=0.9686

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
=19031 / 16516
=1.1523

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))
=(1827 / (1827 + 14110)) / (2017 / (2017 + 14382))
=0.11463889 / 0.1229953
=0.9321

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)
=(1895 / 19031) / (1794 / 16516)
=0.09957438 / 0.10862194
=0.9167

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)
=((14046 + 3722) / 30128) / ((12883 + 3683) / 29037)
=0.5897504 / 0.57051348
=1.0337

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
=(2144 - -26 - 4480) / 30128
=-0.0767

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.

Waste Management has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.


Waste Management Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Waste Management's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Management Business Description

Waste Management logo
Address
800 Capitol Street, Suite 3000, Houston, TX, USA, 77002
Waste Management ranks as the largest integrated provider of traditional solid waste services in the United States, operating approximately 268 active landfills and about 350 transfer stations (includes acquired Advanced Disposal landfills and transfer stations). The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Executives
Carrasco Rafael officer: SVP Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Sylvester Maryrose director C/O 3700 WEST JUNEAU AVENUE MILWAUKEE WI 53208
Menke Sean E director C/O IHS INC. 15 INVERNESS WAY EAST ENGLEWOOD CO 80112
Plummer William B director C/O UNITED RENTALS INC / DE 100 FIRST STAMFORD PL STE 700 STAMFORD CT 06902
Watson Michael J. officer: Sr. VP-Chief Customer Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Batchelor Steve officer: Sr. Vice President Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Oates-forney Tamla officer: Sr VP and Chief HR Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Hmmer Tara J. officer: SVP Operat Safety Envir Compl 800 CAPITOL STREET 3000 HOUSTON X1 77002
Nagy Leslie K officer: VP & Chief Accounting Officer 5 GREENWAY PLAZA, SUITE 100 HOUSTON TX 77046
Sjoqvist Nikolaj H officer: SVP, Chief Digital Officer 800 CAPITOL STREET 3000 HOUSTON X1 77002
Boettcher Charles C officer: Sr VP Chief Legal Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Shade Darren K officer: VP & Chief Accounting Officer 1001 FANNIN HOUSTON TX 77002
Mazzarella Kathleen M director C/O GRAYBAR ELECTRIC CO., INC 34 N. MERAMEC AVENUE CLAYTON MO 63105
Gluski Andres director 4300 WILSON BOULEVARD ARLINGTON VA 22203
Holt Victoria M director PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272

Waste Management Headlines

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