Baxter International (WBO:BAX) Beneish M-Score : -2.25 (As of Apr. 24, 2024)

View and export this data going back to 2018. Start your Free Trial

What is Baxter International 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:BAX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85 Med: -2.6 Max: -2.14
Current: -2.25

During the past 13 years, the highest Beneish M-Score of Baxter International was -2.14. The lowest was -2.85. And the median was -2.60.

Baxter International Beneish M-Score Historical Data

The historical data trend for Baxter International'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.

Baxter International Beneish M-Score Chart

Baxter International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.85

-2.47

-2.14

-2.67

-2.25

Baxter International 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															-2.67	-2.68	-2.73	-2.35	-2.25

Competitive Comparison of Baxter International's Beneish M-Score

For the Medical Instruments & Supplies subindustry, Baxter International'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.

Baxter International's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Baxter International's Beneish M-Score distribution charts can be found below:

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

Baxter International 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 Baxter International 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 * 1.0217

0.528 * 1.0382

0.404 * 0.9125

0.892 * 0.9943

0.115 * 1.0233

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0003

4.679 * 0.036791

0.327 * 0.8851

-2.27

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €2,515 Mil.
Revenue was 3562.545 + 3474.396 + 3421.561 + 3408.166 = €13,867 Mil.
Gross Profit was 1349.824 + 1046.629 + 1025.453 + 1258.098 = €4,680 Mil.
Total Current Assets was €8,803 Mil.
Total Assets was €25,929 Mil.
Property, Plant and Equipment(Net PPE) was €4,546 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,172 Mil.
Selling, General, & Admin. Expense(SGA) was €3,629 Mil.
Total Current Liabilities was €5,963 Mil.
Long-Term Debt & Capital Lease Obligation was €10,608 Mil.
Net Income was 224.665 + 2349.996 + -130.143 + 41.096 = €2,486 Mil.
Non Operating Income was -50.435 + 6.559 + -37.843 + 13.076 = €-69 Mil.
Cash Flow from Operations was 486.927 + 342.005 + 323.973 + 447.386 = €1,600 Mil.

Total Receivables was €2,476 Mil.
Revenue was 3535.28 + 3645.09 + 3399.924 + 3365.956 = €13,946 Mil.
Gross Profit was 1310.272 + 1055.45 + 1296.966 + 1223.984 = €4,887 Mil.
Total Current Assets was €7,562 Mil.
Total Assets was €26,703 Mil.
Property, Plant and Equipment(Net PPE) was €4,943 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,312 Mil.
Selling, General, & Admin. Expense(SGA) was €3,649 Mil.
Total Current Liabilities was €4,479 Mil.
Long-Term Debt & Capital Lease Obligation was €14,801 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)
	=	(2515.331 / 13866.668)	/	(2476.112 / 13946.25)
	=	0.181394	/	0.177547
	=	1.0217

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)
	=	(4886.672 / 13946.25)	/	(4680.004 / 13866.668)
	=	0.350393	/	0.3375
	=	1.0382

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 - (8803.2 + 4545.569) / 25929.092)	/	(1 - (7562.384 + 4942.784) / 26702.928)
	=	0.485182	/	0.531693
	=	0.9125

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
	=	13866.668	/	13946.25
	=	0.9943

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))
	=	(1311.572 / (1311.572 + 4942.784))	/	(1171.668 / (1171.668 + 4545.569))
	=	0.209705	/	0.204936
	=	1.0233

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)
	=	(3629.381 / 13866.668)	/	(3649.246 / 13946.25)
	=	0.261734	/	0.261665
	=	1.0003

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)
	=	((10607.856 + 5963.251) / 25929.092)	/	((14800.976 + 4479.28) / 26702.928)
	=	0.639093	/	0.722028
	=	0.8851

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
	=	(2485.614 - -68.643	-	1600.291)	/	25929.092
	=	0.036791

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.

Baxter International has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Baxter International Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Baxter International's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Baxter International (WBO:BAX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Baxter International Inc (WBO:BAX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BAX:USA 1BAX:Italy BTL:Germany

Address

One Baxter Parkway, Deerfield, IL, USA, 60015

Website

https://www.baxter.com

Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter offers tools to help patients with acute and chronic kidney failure, which it plans to spin off by mid-2024. It also sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.