Electrolux AB (Electrolux AB) Beneish M-Score : -2.82 (As of Apr. 26, 2024)

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What is Electrolux 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 -2.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ELUXY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97 Med: -2.73 Max: -2.28
Current: -2.82

During the past 13 years, the highest Beneish M-Score of Electrolux AB was -2.28. The lowest was -2.97. And the median was -2.73.

Electrolux AB Beneish M-Score Historical Data

The historical data trend for Electrolux 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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Electrolux AB Beneish M-Score Chart

Electrolux AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.77

-2.85

-2.44

-2.28

-2.82

Electrolux AB Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.28	-2.21	-2.43	-2.58	-2.82

Competitive Comparison of Electrolux AB's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Electrolux 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.

Electrolux AB's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Electrolux AB's Beneish M-Score distribution charts can be found below:

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

Electrolux 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 Electrolux 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 * 1.0803

0.528 * 1.0419

0.404 * 1.0727

0.892 * 0.9589

0.115 * 0.901

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0904

4.679 * -0.075269

0.327 * 1.0371

-2.78

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2,459 Mil.
Revenue was 3474.107 + 3015.571 + 3032.101 + 3124.576 = $12,646 Mil.
Gross Profit was 296.366 + 428.695 + 468.656 + 410.068 = $1,604 Mil.
Total Current Assets was $6,176 Mil.
Total Assets was $11,704 Mil.
Property, Plant and Equipment(Net PPE) was $3,224 Mil.
Depreciation, Depletion and Amortization(DDA) was $590 Mil.
Selling, General, & Admin. Expense(SGA) was $1,919 Mil.
Total Current Liabilities was $6,721 Mil.
Long-Term Debt & Capital Lease Obligation was $3,148 Mil.
Net Income was -400.971 + 11.096 + -60.172 + -56.127 = $-506 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 376.209 + 103.295 + 329.183 + -433.932 = $375 Mil.

Total Receivables was $2,374 Mil.
Revenue was 3446.618 + 3230.401 + 3363.163 + 3148.706 = $13,189 Mil.
Gross Profit was 328.291 + 408.612 + 463.084 + 542.696 = $1,743 Mil.
Total Current Assets was $6,744 Mil.
Total Assets was $12,247 Mil.
Property, Plant and Equipment(Net PPE) was $3,255 Mil.
Depreciation, Depletion and Amortization(DDA) was $527 Mil.
Selling, General, & Admin. Expense(SGA) was $1,835 Mil.
Total Current Liabilities was $6,880 Mil.
Long-Term Debt & Capital Lease Obligation was $3,078 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)
	=	(2459.347 / 12646.355)	/	(2374.157 / 13188.888)
	=	0.194471	/	0.180012
	=	1.0803

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)
	=	(1742.683 / 13188.888)	/	(1603.785 / 12646.355)
	=	0.132133	/	0.126818
	=	1.0419

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 - (6176.299 + 3223.561) / 11703.81)	/	(1 - (6744.459 + 3255.155) / 12247.254)
	=	0.196855	/	0.183522
	=	1.0727

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
	=	12646.355	/	13188.888
	=	0.9589

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))
	=	(527.208 / (527.208 + 3255.155))	/	(589.955 / (589.955 + 3223.561))
	=	0.139386	/	0.154701
	=	0.901

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)
	=	(1918.764 / 12646.355)	/	(1835.103 / 13188.888)
	=	0.151725	/	0.13914
	=	1.0904

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)
	=	((3148.3 + 6720.87) / 11703.81)	/	((3078.435 + 6879.938) / 12247.254)
	=	0.843244	/	0.813111
	=	1.0371

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
	=	(-506.174 - 0	-	374.755)	/	11703.81
	=	-0.075269

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.

Electrolux AB has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Electrolux AB Beneish M-Score Related Terms

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Electrolux AB (Electrolux AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Electrolux AB (OTCPK:ELUXY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ELRXF:USA ELUX B:Sweden ELUX A:Sweden ELUXBs:UK 0MDT:UK ELXC:Germany

Address

Street Goransgatan 143, Stadshagen, Stockholm, SWE, SE-105 45

Website

https://www.electroluxgroup.com

Electrolux AB is a Sweden-based company that is principally engaged in manufacturing home appliances and appliances for professional use. Its products are categorized into kitchen products, laundry products, small appliances, professional kitchen products, professional laundry products, and adjacent products, with kitchen products accounting for more than half of total revenue. The company's brands include Electrolux, AEG, Zanussi, Frigidaire, and Electrolux Grand Cuisine. The company has a business presence, including North America, Europe, Latin America, Africa, the Middle East, and Asia, with North America and Europe jointly contributing over half of the total revenue.