Polaris (STU:PL6) Beneish M-Score : -2.94 (As of Mar. 05, 2025)

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What is Polaris 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 -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:PL6' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08 Med: -2.78 Max: -2.13
Current: -2.94

During the past 13 years, the highest Beneish M-Score of Polaris was -2.13. The lowest was -3.08. And the median was -2.78.

Polaris Beneish M-Score Historical Data

The historical data trend for Polaris'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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Polaris Beneish M-Score Chart

Polaris Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.94

-2.30

-2.13

-2.94

Polaris Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.94	-2.89	-2.82	-3.23	-2.94

Competitive Comparison of Polaris's Beneish M-Score

For the Recreational Vehicles subindustry, Polaris'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.

Polaris's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Polaris's Beneish M-Score distribution charts can be found below:

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

Polaris 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 Polaris 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 * 0.8538

0.528 * 1.0732

0.404 * 1.0657

0.892 * 0.8021

0.115 * 0.9333

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2094

4.679 * -0.026521

0.327 * 1.0311

-2.90

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €198 Mil.
Revenue was 1676.407 + 1551.882 + 1821.955 + 1597.488 = €6,648 Mil.
Gross Profit was 341.795 + 319.495 + 393.896 + 303.876 = €1,359 Mil.
Total Current Assets was €2,514 Mil.
Total Assets was €5,277 Mil.
Property, Plant and Equipment(Net PPE) was €1,255 Mil.
Depreciation, Depletion and Amortization(DDA) was €265 Mil.
Selling, General, & Admin. Expense(SGA) was €868 Mil.
Total Current Liabilities was €2,190 Mil.
Long-Term Debt & Capital Lease Obligation was €1,660 Mil.
Net Income was 10.123 + 24.958 + 63.822 + 3.496 = €102 Mil.
Non Operating Income was -18.432 + 4.595 + 0.743 + 0.552 = €-13 Mil.
Cash Flow from Operations was 197.017 + 18.921 + 135.913 + -96.968 = €255 Mil.

Total Receivables was €289 Mil.
Revenue was 2099.196 + 2107.219 + 2045.922 + 2035.84 = €8,288 Mil.
Gross Profit was 437.317 + 476.746 + 466.115 + 438.233 = €1,818 Mil.
Total Current Assets was €2,468 Mil.
Total Assets was €5,058 Mil.
Property, Plant and Equipment(Net PPE) was €1,234 Mil.
Depreciation, Depletion and Amortization(DDA) was €240 Mil.
Selling, General, & Admin. Expense(SGA) was €895 Mil.
Total Current Liabilities was €1,773 Mil.
Long-Term Debt & Capital Lease Obligation was €1,806 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)
	=	(198.067 / 6647.732)	/	(289.222 / 8288.177)
	=	0.029795	/	0.034896
	=	0.8538

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)
	=	(1818.411 / 8288.177)	/	(1359.062 / 6647.732)
	=	0.219398	/	0.20444
	=	1.0732

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 - (2513.942 + 1254.775) / 5276.566)	/	(1 - (2468.289 + 1233.732) / 5058.447)
	=	0.285763	/	0.268151
	=	1.0657

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
	=	6647.732	/	8288.177
	=	0.8021

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))
	=	(240.142 / (240.142 + 1233.732))	/	(265.391 / (265.391 + 1254.775))
	=	0.162933	/	0.17458
	=	0.9333

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)
	=	(868.194 / 6647.732)	/	(895.026 / 8288.177)
	=	0.1306	/	0.107988
	=	1.2094

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)
	=	((1659.599 + 2190.006) / 5276.566)	/	((1806.031 + 1773.295) / 5058.447)
	=	0.729566	/	0.707594
	=	1.0311

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
	=	(102.399 - -12.542	-	254.883)	/	5276.566
	=	-0.026521

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.

Polaris has a M-score of -2.90 suggests that the company is unlikely to be a manipulator.

Polaris Beneish M-Score Related Terms

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Polaris Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Polaris Inc (STU:PL6) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PII:USA PII:Mexico 0KJQ:UK PL6:Germany

Address

2100 Highway 55, Medina, MN, USA, 55340

Website

https://www.polaris.com

Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to another segment of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.

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