CNH Industrial NV (WBO:CNHI) Beneish M-Score : -2.28 (As of Dec. 11, 2024)

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What is CNH Industrial NV 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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:CNHI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.48 Max: -1.09
Current: -2.28

During the past 13 years, the highest Beneish M-Score of CNH Industrial NV was -1.09. The lowest was -2.86. And the median was -2.48.

CNH Industrial NV Beneish M-Score Historical Data

The historical data trend for CNH Industrial NV'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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CNH Industrial NV Beneish M-Score Chart

CNH Industrial NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.32

-2.56

-2.86

-1.91

-2.07

CNH Industrial NV 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															-2.05	-2.07	-2.10	-2.20	-2.28

Competitive Comparison of CNH Industrial NV's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, CNH Industrial NV'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.

CNH Industrial NV's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Beneish M-Score distribution charts can be found below:

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

CNH Industrial NV 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 CNH Industrial NV 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 * 1.2115

0.528 * 0.9636

0.404 * 1.0618

0.892 * 0.8595

0.115 * 0.9631

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0597

4.679 * 0.021667

0.327 * 1.0086

-2.32

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €22,118 Mil.
Revenue was 4193.254 + 5098.352 + 4432.56 + 6228.264 = €19,952 Mil.
Gross Profit was 1373.124 + 1659.194 + 1493.16 + 1913.779 = €6,439 Mil.
Total Current Assets was €29,668 Mil.
Total Assets was €39,674 Mil.
Property, Plant and Equipment(Net PPE) was €3,051 Mil.
Depreciation, Depletion and Amortization(DDA) was €552 Mil.
Selling, General, & Admin. Expense(SGA) was €1,629 Mil.
Total Current Liabilities was €3,761 Mil.
Long-Term Debt & Capital Lease Obligation was €24,869 Mil.
Net Income was 275.706 + 402.257 + 368.92 + 621.726 = €1,669 Mil.
Non Operating Income was -125.239 + -200.664 + -172.96 + -323.701 = €-823 Mil.
Cash Flow from Operations was 712.691 + 352.091 + -822.48 + 1389.255 = €1,632 Mil.

Total Receivables was €21,240 Mil.
Revenue was 5608.882 + 6061.341 + 4989.428 + 6554.192 = €23,214 Mil.
Gross Profit was 1805.599 + 1941.992 + 1616.754 + 1854.96 = €7,219 Mil.
Total Current Assets was €30,734 Mil.
Total Assets was €40,329 Mil.
Property, Plant and Equipment(Net PPE) was €2,937 Mil.
Depreciation, Depletion and Amortization(DDA) was €508 Mil.
Selling, General, & Admin. Expense(SGA) was €1,788 Mil.
Total Current Liabilities was €5,244 Mil.
Long-Term Debt & Capital Lease Obligation was €23,611 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)
	=	(22117.748 / 19952.43)	/	(21239.916 / 23213.843)
	=	1.108524	/	0.914968
	=	1.2115

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)
	=	(7219.305 / 23213.843)	/	(6439.257 / 19952.43)
	=	0.310991	/	0.32273
	=	0.9636

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 - (29668.128 + 3050.786) / 39673.733)	/	(1 - (30733.6 + 2937.495) / 40329.417)
	=	0.1753	/	0.165098
	=	1.0618

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
	=	19952.43	/	23213.843
	=	0.8595

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))
	=	(508.296 / (508.296 + 2937.495))	/	(551.81 / (551.81 + 3050.786))
	=	0.147512	/	0.15317
	=	0.9631

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)
	=	(1628.541 / 19952.43)	/	(1788.073 / 23213.843)
	=	0.081621	/	0.077026
	=	1.0597

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)
	=	((24869.402 + 3760.774) / 39673.733)	/	((23611.463 + 5244.389) / 40329.417)
	=	0.721641	/	0.715504
	=	1.0086

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
	=	(1668.609 - -822.564	-	1631.557)	/	39673.733
	=	0.021667

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.

CNH Industrial NV has a M-score of -2.32 suggests that the company is unlikely to be a manipulator.

CNH Industrial NV Beneish M-Score Related Terms

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CNH Industrial NV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » CNH Industrial NV (WBO:CNHI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CNH:USA 1CNHI:Italy 0QGU:UK 37C:Germany

Address

Cranes Farm Road, Basildon, Essex, London, GBR, SS14 3AD

Website

https://www.cnhindustrial.com

CNH Industrial NV is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations worldwide. CNH's finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.

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