GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Church & Dwight Co Inc (WBO:CHD) » Definitions » Beneish M-Score

Church & Dwight Co (WBO:CHD) Beneish M-Score

: -2.41 (As of Today)
View and export this data going back to 2019. Start your Free Trial

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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:CHD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82   Med: -2.61   Max: -2.36
Current: -2.41

During the past 13 years, the highest Beneish M-Score of Church & Dwight Co was -2.36. The lowest was -2.82. And the median was -2.61.


Church & Dwight Co Beneish M-Score Historical Data

The historical data trend for Church & Dwight Co'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.

Church & Dwight Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.62 -2.49 -2.57 -2.75 -2.41

Church & Dwight Co 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 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 Premium Member Only Premium Member Only Premium Member Only -2.75 -2.81 -2.74 -2.79 -2.41

Competitive Comparison

For the Household & Personal Products subindustry, Church & Dwight Co'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.


Church & Dwight Co Beneish M-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Church & Dwight Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Church & Dwight Co's Beneish M-Score falls into.



Church & Dwight Co 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 Church & Dwight Co 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 * 1.1403+0.528 * 0.9487+0.404 * 0.9618+0.892 * 1.0636+0.115 * 1.1406
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8501+4.679 * -0.034998-0.327 * 0.9329
=-2.44

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was €483 Mil.
Revenue was 1401.176 + 1364.178 + 1342.227 + 1335.433 = €5,443 Mil.
Gross Profit was 624.752 + 605.583 + 589.705 + 580.948 = €2,401 Mil.
Total Current Assets was €1,403 Mil.
Total Assets was €7,858 Mil.
Property, Plant and Equipment(Net PPE) was €851 Mil.
Depreciation, Depletion and Amortization(DDA) was €209 Mil.
Selling, General, & Admin. Expense(SGA) was €1,420 Mil.
Total Current Liabilities was €1,304 Mil.
Long-Term Debt & Capital Lease Obligation was €2,019 Mil.
Net Income was 140.943 + 166.318 + 204.168 + 189.789 = €701 Mil.
Non Operating Income was 5.594 + 5.06 + 3.415 + 5.324 = €19 Mil.
Cash Flow from Operations was 215.953 + 267.888 + 217.92 + 255.075 = €957 Mil.
Total Receivables was €398 Mil.
Revenue was 1355.584 + 1330.473 + 1253.545 + 1177.858 = €5,117 Mil.
Gross Profit was 568.76 + 555.197 + 515.854 + 501.67 = €2,141 Mil.
Total Current Assets was €1,318 Mil.
Total Assets was €7,878 Mil.
Property, Plant and Equipment(Net PPE) was €718 Mil.
Depreciation, Depletion and Amortization(DDA) was €208 Mil.
Selling, General, & Admin. Expense(SGA) was €1,570 Mil.
Total Current Liabilities was €1,118 Mil.
Long-Term Debt & Capital Lease Obligation was €2,454 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)
=(483.167 / 5443.014) / (398.368 / 5117.46)
=0.088768 / 0.077845
=1.1403

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)
=(2141.481 / 5117.46) / (2400.988 / 5443.014)
=0.418466 / 0.441114
=0.9487

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 - (1402.735 + 850.701) / 7857.956) / (1 - (1317.73 + 718.478) / 7878.246)
=0.713229 / 0.74154
=0.9618

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
=5443.014 / 5117.46
=1.0636

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))
=(208.429 / (208.429 + 718.478)) / (208.9 / (208.9 + 850.701))
=0.224865 / 0.19715
=1.1406

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)
=(1419.512 / 5443.014) / (1569.982 / 5117.46)
=0.260795 / 0.306789
=0.8501

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)
=((2019.417 + 1303.974) / 7857.956) / ((2453.928 + 1117.507) / 7878.246)
=0.422933 / 0.453329
=0.9329

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
=(701.218 - 19.393 - 956.836) / 7857.956
=-0.034998

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.

Church & Dwight Co has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.


Church & Dwight Co Beneish M-Score Related Terms

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


Church & Dwight Co (WBO:CHD) Business Description

Traded in Other Exchanges
Address
500 Charles Ewing Boulevard, Ewing, NJ, USA, 08628
Church & Dwight is the leading global producer of baking soda. Beyond baking soda, the products in its portfolio have vast category reach, including laundry products, cat litter, oral care, deodorant, and nasal care, all sold under the Arm & Hammer brand. Its mix also includes Xtra, Trojan, OxiClean, First Response, Nair, L'il Critters/Vitafusion, Orajel, and WaterPik, which together with Arm & Hammer constitute more than 80% of its annual sales and profits. In early 2019, the firm announced the addition of Flawless, which manufactures electric shaving products for women. At the end of 2020, the firm acquired Zicam, a leading brand in the cough/cold-shortening category. Church & Dwight derives more than 80% of its sales from its home market in the U.S.