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Bayerische Motoren Werke AG (WAR:BMW) Beneish M-Score : -2.32 (As of Dec. 16, 2024)


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What is Bayerische Motoren Werke AG 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 -2.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAR:BMW' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74   Med: -2.4   Max: -2.02
Current: -2.32

During the past 13 years, the highest Beneish M-Score of Bayerische Motoren Werke AG was -2.02. The lowest was -2.74. And the median was -2.40.


Bayerische Motoren Werke AG Beneish M-Score Historical Data

The historical data trend for Bayerische Motoren Werke AG'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.

Bayerische Motoren Werke AG Beneish M-Score Chart

Bayerische Motoren Werke AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.64 -2.63 -2.68 -2.41 -2.62

Bayerische Motoren Werke AG 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 -2.71 -2.62 -2.47 -2.40 -2.32

Competitive Comparison of Bayerische Motoren Werke AG's Beneish M-Score

For the Auto Manufacturers subindustry, Bayerische Motoren Werke AG'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.


Bayerische Motoren Werke AG's Beneish M-Score Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Bayerische Motoren Werke AG's Beneish M-Score falls into.



Bayerische Motoren Werke AG 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 Bayerische Motoren Werke AG 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 * 1.0797+0.528 * 1.1094+0.404 * 1.0097+0.892 * 0.9981+0.115 * 1.1448
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0606+4.679 * 0.009925-0.327 * 0.9621
=-2.28

* 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 zł183,877 Mil.
Revenue was 145835.956 + 161247.198 + 161370.196 + 189993.953 = zł658,447 Mil.
Gross Profit was 19108.173 + 29064.127 + 28929.753 + 34772.678 = zł111,875 Mil.
Total Current Assets was zł447,809 Mil.
Total Assets was zł1,178,739 Mil.
Property, Plant and Equipment(Net PPE) was zł370,751 Mil.
Depreciation, Depletion and Amortization(DDA) was zł38,640 Mil.
Selling, General, & Admin. Expense(SGA) was zł50,308 Mil.
Total Current Liabilities was zł405,412 Mil.
Long-Term Debt & Capital Lease Obligation was zł0 Mil.
Net Income was 1750.608 + 11404.8 + 12300.874 + 10559.15 = zł36,015 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0 Mil.
Cash Flow from Operations was -1899.117 + 6219.61 + 12027.62 + 7968.002 = zł24,316 Mil.
Total Receivables was zł170,615 Mil.
Revenue was 166422.131 + 163503.47 + 159988.935 + 169758.252 = zł659,673 Mil.
Gross Profit was 29958.407 + 31322.167 + 33740.374 + 29319.615 = zł124,341 Mil.
Total Current Assets was zł441,717 Mil.
Total Assets was zł1,104,489 Mil.
Property, Plant and Equipment(Net PPE) was zł328,534 Mil.
Depreciation, Depletion and Amortization(DDA) was zł39,797 Mil.
Selling, General, & Admin. Expense(SGA) was zł47,521 Mil.
Total Current Liabilities was zł394,851 Mil.
Long-Term Debt & Capital Lease Obligation was zł0 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)
=(183876.792 / 658447.303) / (170615.356 / 659672.788)
=0.279258 / 0.258636
=1.0797

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)
=(124340.563 / 659672.788) / (111874.731 / 658447.303)
=0.188488 / 0.169907
=1.1094

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 - (447809 + 370750.768) / 1178739.386) / (1 - (441716.653 + 328534.199) / 1104488.529)
=0.305563 / 0.302618
=1.0097

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
=658447.303 / 659672.788
=0.9981

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))
=(39797.041 / (39797.041 + 328534.199)) / (38639.744 / (38639.744 + 370750.768))
=0.108047 / 0.094384
=1.1448

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)
=(50307.787 / 658447.303) / (47521.444 / 659672.788)
=0.076404 / 0.072038
=1.0606

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)
=((0 + 405411.896) / 1178739.386) / ((0 + 394851.198) / 1104488.529)
=0.343937 / 0.357497
=0.9621

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
=(36015.432 - 0 - 24316.115) / 1178739.386
=0.009925

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.

Bayerische Motoren Werke AG has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.


Bayerische Motoren Werke AG Beneish M-Score Related Terms

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Bayerische Motoren Werke AG Business Description

Address
Petuelring 130, Munich, BY, DEU, 80809
BMW is a premium passenger car and motorcycle original equipment manufacturer, home to the brands BMW, Mini Cooper, Rolls-Royce, and BMW Motorrad. BMW sold 2.8 million vehicles in 2023 (2.6 million being passenger cars). In terms of sales volumes, Asia and Europe are BMW's largest regions, contributing 39% and 38%, respectively. BMW's core competence is in the "affordable" luxury channel, with limited exposure to high-end priced vehicles.

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