Parker Hannifin (WBO:PH) Beneish M-Score : -2.58 (As of Dec. 12, 2024)

View and export this data going back to 2021. Start your Free Trial

What is Parker Hannifin 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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:PH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.62 Max: -2.21
Current: -2.58

During the past 13 years, the highest Beneish M-Score of Parker Hannifin was -2.21. The lowest was -2.81. And the median was -2.62.

Parker Hannifin Beneish M-Score Historical Data

The historical data trend for Parker Hannifin'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.

Parker Hannifin Beneish M-Score Chart

Parker Hannifin Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

Get a 7-Day Free Trial

-2.69

-2.72

-2.57

-2.34

-2.58

Parker Hannifin 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															-2.63	-2.62	-2.62	-2.58	-2.58

Competitive Comparison of Parker Hannifin's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Parker Hannifin'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.

Parker Hannifin's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Parker Hannifin's Beneish M-Score distribution charts can be found below:

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

Parker Hannifin 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 Parker Hannifin 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 * 0.9627

0.528 * 0.9529

0.404 * 0.9899

0.892 * 0.9967

0.115 * 0.9758

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9537

4.679 * -0.026219

0.327 * 0.8613

-2.62

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €2,730 Mil.
Revenue was 4418.49 + 4818.551 + 4668.408 + 4420.808 = €18,326 Mil.
Gross Profit was 1627.445 + 1731.619 + 1651.13 + 1576.309 = €6,587 Mil.
Total Current Assets was €6,337 Mil.
Total Assets was €26,670 Mil.
Property, Plant and Equipment(Net PPE) was €2,558 Mil.
Depreciation, Depletion and Amortization(DDA) was €840 Mil.
Selling, General, & Admin. Expense(SGA) was €2,965 Mil.
Total Current Liabilities was €6,612 Mil.
Long-Term Debt & Capital Lease Obligation was €6,013 Mil.
Net Income was 629.276 + 729.231 + 668.448 + 625.257 = €2,652 Mil.
Non Operating Income was 25.214 + 30.283 + 40.48 + 60.522 = €156 Mil.
Cash Flow from Operations was 670.321 + 1149.407 + 731.483 + 643.76 = €3,195 Mil.

Total Receivables was €2,845 Mil.
Revenue was 4542.096 + 4703.555 + 4727.595 + 4413.022 = €18,386 Mil.
Gross Profit was 1639.88 + 1691.936 + 1607.322 + 1357.471 = €6,297 Mil.
Total Current Assets was €6,399 Mil.
Total Assets was €27,728 Mil.
Property, Plant and Equipment(Net PPE) was €2,662 Mil.
Depreciation, Depletion and Amortization(DDA) was €846 Mil.
Selling, General, & Admin. Expense(SGA) was €3,119 Mil.
Total Current Liabilities was €7,184 Mil.
Long-Term Debt & Capital Lease Obligation was €8,055 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)
	=	(2730.063 / 18326.257)	/	(2845.216 / 18386.268)
	=	0.14897	/	0.154747
	=	0.9627

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)
	=	(6296.609 / 18386.268)	/	(6586.503 / 18326.257)
	=	0.342463	/	0.359403
	=	0.9529

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 - (6337.365 + 2558.427) / 26670.352)	/	(1 - (6399.331 + 2661.556) / 27728.376)
	=	0.666454	/	0.673227
	=	0.9899

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
	=	18326.257	/	18386.268
	=	0.9967

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))
	=	(845.554 / (845.554 + 2661.556))	/	(839.567 / (839.567 + 2558.427))
	=	0.241097	/	0.247077
	=	0.9758

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)
	=	(2965.141 / 18326.257)	/	(3119.338 / 18386.268)
	=	0.161797	/	0.169656
	=	0.9537

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)
	=	((6012.646 + 6611.565) / 26670.352)	/	((8054.511 + 7184.031) / 27728.376)
	=	0.473342	/	0.549565
	=	0.8613

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
	=	(2652.212 - 156.499	-	3194.971)	/	26670.352
	=	-0.026219

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.

Parker Hannifin has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.

Parker Hannifin Beneish M-Score Related Terms

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

Parker Hannifin Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Parker Hannifin Corp (WBO:PH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PH:USA 1PH:Italy 0KFZ:UK PAR:Germany PAR:Germany PAR:Germany P1HC34:Brazil

Address

6035 Parkland Boulevard, Cleveland, OH, USA, 44124-4141

Website

https://www.parker.com

Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.