Grupa Azoty (WAR:ATT) Beneish M-Score : -2.97 (As of Jun. 21, 2024)

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What is Grupa Azoty 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 -2.97 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAR:ATT' s Beneish M-Score Range Over the Past 10 Years
Min: -59.64 Med: -2.92 Max: -1.97
Current: -2.97

During the past 13 years, the highest Beneish M-Score of Grupa Azoty was -1.97. The lowest was -59.64. And the median was -2.92.

Grupa Azoty Beneish M-Score Historical Data

The historical data trend for Grupa Azoty'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.

Grupa Azoty Beneish M-Score Chart

Grupa Azoty Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.15

-2.89

-3.13

-3.11

-9.06

Grupa Azoty 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															-2.85	-59.64	-7.35	-9.06	-2.97

Competitive Comparison of Grupa Azoty's Beneish M-Score

For the Agricultural Inputs subindustry, Grupa Azoty'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.

Grupa Azoty's Beneish M-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Grupa Azoty's Beneish M-Score distribution charts can be found below:

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

Grupa Azoty 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 Grupa Azoty 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 * 1.0925

0.528 * 4.1217

0.404 * 1.149

0.892 * 0.6006

0.115 * 0.9548

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5567

4.679 * -0.380714

0.327 * 1.1438

-2.97

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was zł2,730 Mil.
Revenue was 3398.779 + 3083.415 + 3075.38 + 3490.846 = zł13,048 Mil.
Gross Profit was 265.804 + 430.007 + -45.694 + -365.205 = zł285 Mil.
Total Current Assets was zł7,635 Mil.
Total Assets was zł25,092 Mil.
Property, Plant and Equipment(Net PPE) was zł14,464 Mil.
Depreciation, Depletion and Amortization(DDA) was zł822 Mil.
Selling, General, & Admin. Expense(SGA) was zł1,988 Mil.
Total Current Liabilities was zł15,800 Mil.
Long-Term Debt & Capital Lease Obligation was zł1,049 Mil.
Net Income was -295.037 + -1097.942 + -658.495 + -543.962 = zł-2,595 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0 Mil.
Cash Flow from Operations was 415.831 + 2743.19 + 1456.638 + 2341.632 = zł6,957 Mil.

Total Receivables was zł4,161 Mil.
Revenue was 3895.453 + 5107.169 + 6313.752 + 6409.769 = zł21,726 Mil.
Gross Profit was -307.801 + 65.744 + 566.305 + 1631.04 = zł1,955 Mil.
Total Current Assets was zł10,314 Mil.
Total Assets was zł27,437 Mil.
Property, Plant and Equipment(Net PPE) was zł14,275 Mil.
Depreciation, Depletion and Amortization(DDA) was zł773 Mil.
Selling, General, & Admin. Expense(SGA) was zł2,126 Mil.
Total Current Liabilities was zł10,076 Mil.
Long-Term Debt & Capital Lease Obligation was zł6,032 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)
	=	(2729.903 / 13048.42)	/	(4160.731 / 21726.143)
	=	0.209213	/	0.191508
	=	1.0925

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)
	=	(1955.288 / 21726.143)	/	(284.912 / 13048.42)
	=	0.089997	/	0.021835
	=	4.1217

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 - (7635.467 + 14463.947) / 25091.636)	/	(1 - (10314.348 + 14274.995) / 27436.962)
	=	0.119252	/	0.103788
	=	1.149

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
	=	13048.42	/	21726.143
	=	0.6006

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))
	=	(772.587 / (772.587 + 14274.995))	/	(822.001 / (822.001 + 14463.947))
	=	0.051343	/	0.053775
	=	0.9548

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)
	=	(1987.946 / 13048.42)	/	(2126.329 / 21726.143)
	=	0.152351	/	0.09787
	=	1.5567

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)
	=	((1048.668 + 15799.729) / 25091.636)	/	((6031.885 + 10075.839) / 27436.962)
	=	0.671475	/	0.587081
	=	1.1438

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
	=	(-2595.436 - 0	-	6957.291)	/	25091.636
	=	-0.380714

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.

Grupa Azoty has a M-score of -2.97 suggests that the company is unlikely to be a manipulator.

Grupa Azoty Beneish M-Score Related Terms

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Grupa Azoty (WAR:ATT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Grupa Azoty SA (WAR:ATT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

5PL:Germany

Address

ul. Kwiatkowskiego 8, Tarnow, POL, 33-101

Website

https://www.grupaazoty.com

Grupa Azoty SA is a holding company, which through its subsidiaries, produces and sells chemicals, plastics, fertilizers, titanium, and extracts sulfur products. The firm organizes itself into five segments based on the product type. The Agro fertilizer segment, which generates the majority of revenue, sells fertilizers and agrochemicals. The Plastics segment sells a variety of plastic products to the automotive, construction, food, and textile industries. The Energy segment produces and sells electricity. The Chemicals segment sells oxo alcohols and other chemicals and its other segment comprises activities such as laboratory services, property rental, and other activities.