Mettler-Toledo International (WBO:MTD) Beneish M-Score

: -2.76 (As of Today)

View and export this data going back to 2021. 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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:MTD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.6 Max: -2.4
Current: -2.76

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International was -2.40. The lowest was -2.78. And the median was -2.60.

Mettler-Toledo International Beneish M-Score Historical Data

The historical data trend for Mettler-Toledo 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.

Mettler-Toledo International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.51

-2.66

-2.56

-2.40

-2.76

Mettler-Toledo 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															-2.40	-2.49	-2.53	-2.56	-2.76

Competitive Comparison

For the Diagnostics & Research subindustry, Mettler-Toledo 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.

Mettler-Toledo International Beneish M-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Mettler-Toledo International's Beneish M-Score distribution charts can be found below:

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

Mettler-Toledo 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 Mettler-Toledo 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 * 0.9662

0.528 * 0.9955

0.404 * 1.0278

0.892 * 0.941

0.115 * 0.9646

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9978

4.679 * -0.044498

0.327 * 1.0454

-2.78

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €609 Mil.
Revenue was 857.388 + 883.087 + 906.494 + 867.441 = €3,514 Mil.
Gross Profit was 505.852 + 524.288 + 538.61 + 510.493 = €2,079 Mil.
Total Current Assets was €1,128 Mil.
Total Assets was €3,077 Mil.
Property, Plant and Equipment(Net PPE) was €737 Mil.
Depreciation, Depletion and Amortization(DDA) was €112 Mil.
Selling, General, & Admin. Expense(SGA) was €839 Mil.
Total Current Liabilities was €1,083 Mil.
Long-Term Debt & Capital Lease Obligation was €1,732 Mil.
Net Income was 169.456 + 188.928 + 197.455 + 175.99 = €732 Mil.
Non Operating Income was -10.534 + -5.823 + -6.47 + -3.622 = €-26 Mil.
Cash Flow from Operations was 258.14 + 247.645 + 246.267 + 143.147 = €895 Mil.

Total Receivables was €670 Mil.
Revenue was 998.455 + 995.704 + 925.554 + 815.194 = €3,735 Mil.
Gross Profit was 596.74 + 590.503 + 540.791 + 471.783 = €2,200 Mil.
Total Current Assets was €1,298 Mil.
Total Assets was €3,297 Mil.
Property, Plant and Equipment(Net PPE) was €735 Mil.
Depreciation, Depletion and Amortization(DDA) was €108 Mil.
Selling, General, & Admin. Expense(SGA) was €893 Mil.
Total Current Liabilities was €1,083 Mil.
Long-Term Debt & Capital Lease Obligation was €1,802 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)
	=	(608.79 / 3514.41)	/	(669.599 / 3734.907)
	=	0.173227	/	0.179281
	=	0.9662

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)
	=	(2199.817 / 3734.907)	/	(2079.243 / 3514.41)
	=	0.588988	/	0.591634
	=	0.9955

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 - (1128.096 + 736.694) / 3077.044)	/	(1 - (1298.084 + 734.998) / 3296.821)
	=	0.393967	/	0.38332
	=	1.0278

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
	=	3514.41	/	3734.907
	=	0.941

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))
	=	(107.598 / (107.598 + 734.998))	/	(112.405 / (112.405 + 736.694))
	=	0.127698	/	0.132382
	=	0.9646

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)
	=	(838.775 / 3514.41)	/	(893.322 / 3734.907)
	=	0.238667	/	0.239182
	=	0.9978

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)
	=	((1731.865 + 1083.052) / 3077.044)	/	((1801.605 + 1083.458) / 3296.821)
	=	0.914812	/	0.875105
	=	1.0454

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
	=	(731.829 - -26.449	-	895.199)	/	3077.044
	=	-0.044498

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.

Mettler-Toledo International has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Mettler-Toledo International Beneish M-Score Related Terms

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

Mettler-Toledo International (WBO:MTD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Mettler-Toledo International Inc (WBO:MTD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MTD:USA MTD:Mexico MTO:Germany M1TD34:Brazil

Address

1900 Polaris Parkway, Columbus, OH, USA, 43240

Website

https://www.mt.com

Mettler-Toledo supplies weighing and precision instruments to customers in the life sciences, industrial, and food retail industries. Its products include laboratory and retail scales, pipettes, pH meters, thermal analysis equipment, titrators, metal detectors, and X-ray analyzers. Mettler leads the market for weighing instrumentation and controls more than 50% of the market for lab balances. The business is geographically diversified, with sales distribution roughly as follows: United States around 30% of sales, Europe around 30%, China around 20%, and the rest of the world around 20%.