Assa Abloy AB (Assa Abloy AB) Beneish M-Score : -2.51 (As of Apr. 25, 2024)

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What is Assa Abloy AB Beneish M-Score?

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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASAZF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.5 Max: -2.12
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Assa Abloy AB was -2.12. The lowest was -2.77. And the median was -2.50.

Assa Abloy AB Beneish M-Score Historical Data

The historical data trend for Assa Abloy AB'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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Assa Abloy AB Beneish M-Score Chart

Assa Abloy AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.51

-2.77

-2.40

-2.30

-2.63

Assa Abloy AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.46	-2.53	-2.62	-2.63	-2.51

Competitive Comparison of Assa Abloy AB's Beneish M-Score

For the Security & Protection Services subindustry, Assa Abloy AB'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.

Assa Abloy AB's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Assa Abloy AB's Beneish M-Score distribution charts can be found below:

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

Assa Abloy AB 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 Assa Abloy AB for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0762

0.528 * 0.9714

0.404 * 1.0985

0.892 * 1.1153

0.115 * 0.9988

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9882

4.679 * -0.027377

0.327 * 1.2691

-2.50

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $2,962 Mil.
Revenue was 3380.942 + 3604.157 + 3327.169 + 3201.196 = $13,513 Mil.
Gross Profit was 1395.599 + 1453.459 + 1332.094 + 1320.352 = $5,502 Mil.
Total Current Assets was $5,136 Mil.
Total Assets was $20,178 Mil.
Property, Plant and Equipment(Net PPE) was $1,726 Mil.
Depreciation, Depletion and Amortization(DDA) was $511 Mil.
Selling, General, & Admin. Expense(SGA) was $2,744 Mil.
Total Current Liabilities was $4,551 Mil.
Long-Term Debt & Capital Lease Obligation was $5,420 Mil.
Net Income was 331.563 + 385.958 + 305.463 + 331.875 = $1,355 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 295.736 + 628.412 + 502.219 + 480.913 = $1,907 Mil.

Total Receivables was $2,467 Mil.
Revenue was 3091.836 + 3171.613 + 2916.564 + 2936.352 = $12,116 Mil.
Gross Profit was 1203.669 + 1271.825 + 1157.276 + 1158.955 = $4,792 Mil.
Total Current Assets was $4,544 Mil.
Total Assets was $14,790 Mil.
Property, Plant and Equipment(Net PPE) was $1,360 Mil.
Depreciation, Depletion and Amortization(DDA) was $402 Mil.
Selling, General, & Admin. Expense(SGA) was $2,490 Mil.
Total Current Liabilities was $3,564 Mil.
Long-Term Debt & Capital Lease Obligation was $2,195 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)
	=	(2961.59 / 13513.464)	/	(2467.379 / 12116.365)
	=	0.219158	/	0.20364
	=	1.0762

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)
	=	(4791.725 / 12116.365)	/	(5501.504 / 13513.464)
	=	0.395475	/	0.407113
	=	0.9714

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 - (5135.67 + 1725.625) / 20178.076)	/	(1 - (4544.352 + 1360.499) / 14790.336)
	=	0.659963	/	0.600763
	=	1.0985

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
	=	13513.464	/	12116.365
	=	1.1153

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))
	=	(402.407 / (402.407 + 1360.499))	/	(511.18 / (511.18 + 1725.625))
	=	0.228263	/	0.228531
	=	0.9988

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)
	=	(2744.45 / 13513.464)	/	(2490.123 / 12116.365)
	=	0.20309	/	0.205517
	=	0.9882

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)
	=	((5420.361 + 4551.497) / 20178.076)	/	((2195.05 + 3564.331) / 14790.336)
	=	0.494193	/	0.389402
	=	1.2691

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
	=	(1354.859 - 0	-	1907.28)	/	20178.076
	=	-0.027377

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.

Assa Abloy AB has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.

Assa Abloy AB Beneish M-Score Related Terms

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Assa Abloy AB (Assa Abloy AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Assa Abloy AB (OTCPK:ASAZF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ASAZY:USA ASSA B:Sweden ASSABs:UK 0R87:UK ALZC:Germany ALZC:Germany

Address

Klarabergsviadukten 90, P.O. Box 70340, Stockholm, SWE, SE-107 23

Website

https://www.assaabloy.com

Assa Abloy is the world's largest supplier of locking and physical access solutions, sporting the world's largest installed base of locks that protect some of the most security-sensitive buildings, such as the European Parliament in Brussels. Three quarters of its revenue comes from government, commercial, and other nonresidential customers. The company's product base is centred on electromechanical locks, which require identification to unlock with a keycard, biometric scan, or personal identification number. Assa Abloy's products are sold directly to security systems integrators, locksmiths, hardware stores, and original equipment manufacturers.