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REZI (Resideo Technologies) Beneish M-Score : -2.45 (As of Dec. 15, 2024)


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What is Resideo Technologies 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

REZI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.43   Max: -2.08
Current: -2.45

During the past 9 years, the highest Beneish M-Score of Resideo Technologies was -2.08. The lowest was -2.88. And the median was -2.43.


Resideo Technologies Beneish M-Score Historical Data

The historical data trend for Resideo Technologies'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.

Resideo Technologies Beneish M-Score Chart

Resideo Technologies Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -2.27 -2.51 -2.41 -2.10 -2.51

Resideo Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 -2.46 -2.51 -2.55 -2.43 -2.45

Competitive Comparison of Resideo Technologies's Beneish M-Score

For the Industrial Distribution subindustry, Resideo Technologies'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.


Resideo Technologies's Beneish M-Score Distribution in the Industrial Distribution Industry

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

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



Resideo Technologies 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 Resideo Technologies 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 * 1.0861+0.528 * 0.9752+0.404 * 1.0715+0.892 * 1.0279+0.115 * 0.8842
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0644+4.679 * -0.01303-0.327 * 1.0133
=-2.45

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $1,103 Mil.
Revenue was 1828 + 1589 + 1486 + 1537 = $6,440 Mil.
Gross Profit was 524 + 447 + 400 + 423 = $1,794 Mil.
Total Current Assets was $3,037 Mil.
Total Assets was $8,135 Mil.
Property, Plant and Equipment(Net PPE) was $423 Mil.
Depreciation, Depletion and Amortization(DDA) was $125 Mil.
Selling, General, & Admin. Expense(SGA) was $1,069 Mil.
Total Current Liabilities was $1,672 Mil.
Long-Term Debt & Capital Lease Obligation was $1,983 Mil.
Net Income was 20 + 30 + 43 + 82 = $175 Mil.
Non Operating Income was -84 + -59 + -49 + -31 = $-223 Mil.
Cash Flow from Operations was 147 + 92 + 2 + 263 = $504 Mil.
Total Receivables was $988 Mil.
Revenue was 1554 + 1602 + 1549 + 1560 = $6,265 Mil.
Gross Profit was 417 + 436 + 418 + 431 = $1,702 Mil.
Total Current Assets was $2,615 Mil.
Total Assets was $6,459 Mil.
Property, Plant and Equipment(Net PPE) was $380 Mil.
Depreciation, Depletion and Amortization(DDA) was $96 Mil.
Selling, General, & Admin. Expense(SGA) was $977 Mil.
Total Current Liabilities was $1,467 Mil.
Long-Term Debt & Capital Lease Obligation was $1,397 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)
=(1103 / 6440) / (988 / 6265)
=0.171273 / 0.157702
=1.0861

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)
=(1702 / 6265) / (1794 / 6440)
=0.271668 / 0.278571
=0.9752

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 - (3037 + 423) / 8135) / (1 - (2615 + 380) / 6459)
=0.574677 / 0.536306
=1.0715

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
=6440 / 6265
=1.0279

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))
=(96 / (96 + 380)) / (125 / (125 + 423))
=0.201681 / 0.228102
=0.8842

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)
=(1069 / 6440) / (977 / 6265)
=0.165994 / 0.155946
=1.0644

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)
=((1983 + 1672) / 8135) / ((1397 + 1467) / 6459)
=0.449293 / 0.443412
=1.0133

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
=(175 - -223 - 504) / 8135
=-0.01303

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.

Resideo Technologies has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.


Resideo Technologies Beneish M-Score Related Terms

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Resideo Technologies Business Description

Traded in Other Exchanges
Address
16100 North 71st Street, Suite 550, Scottsdale, AZ, USA, 85254
Resideo Technologies Inc is a manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions. The company has two reportable segments; Products and Solutions segment offers temperature and humidity control, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, and ADI Global Distribution segment includes wholesale distributor of low-voltage security products including access control, fire detection, security, and video products. It derives majority of its revenue from the United States.
Executives
Robert B Aarnes officer: PRESIDENT, ADI 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Jeannine J Lane officer: See Remarks 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Jay L Geldmacher director, officer: President and CEO 5810 VAN ALLEN WAY, CARLSBAD CA 92008
Stephen Montgomery Kelly officer: See Remarks 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Tina M Beskid officer: Chief Accounting Officer 1835 DUEBER AVENUE, S.W., CANTON OH 44706
Jack R Lazar director 400 W. CESAR CHAVEZ, ATTN: STOCK ADMINISTRATION, AUSTIN TX 78701
Nina Richardson director C/O SILICON LABORATORIES, 400 W CESAR CHAVEZ, AUSTIN TX 78701
Phillip L. Theodore officer: Pres., Products & Solutions 901 E. 6TH STREET, AUSTIN TX 78701
Dana Edward Huth officer: EVP, Chief Revenue Officer 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Anthony L Trunzo officer: EVP, Chief Financial Officer 27700 SW PARKWAY AVENUE, WILSONVILLE OR 97070
Kareem Yusuf director 901 E. 6TH STREET, AUSTIN TX 78701
Travis D Merrill officer: EVP, Chief Strat & Cml Officer 27700 SW PARKWAY AVE., WILSONVILLE OR 97070
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Paul F Deninger director C/O JEFFERIES & CO., 1050 WINTER STREET, WALTHAM MA 02451
Andrew C Teich director 3 HANSON DRIVE, MOULTONBOROUGH NH 03254