Dentsply Sirona (WBO:XRAY) Beneish M-Score : -2.51 (As of Apr. 30, 2024)

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What is Dentsply Sirona 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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:XRAY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.62 Max: -1.78
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Dentsply Sirona was -1.78. The lowest was -2.86. And the median was -2.62.

Dentsply Sirona Beneish M-Score Historical Data

The historical data trend for Dentsply Sirona'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.

Dentsply Sirona Beneish M-Score Chart

Dentsply Sirona Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.50

-2.86

-2.49

-2.78

-2.51

Dentsply Sirona 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															-2.78	-2.68	-2.53	-2.58	-2.51

Competitive Comparison of Dentsply Sirona's Beneish M-Score

For the Medical Instruments & Supplies subindustry, Dentsply Sirona'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.

Dentsply Sirona's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

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

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

Dentsply Sirona 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 Dentsply Sirona 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 * 1.0879

0.528 * 1.0307

0.404 * 0.9569

0.892 * 0.9854

0.115 * 0.9775

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0029

4.679 * -0.018144

0.327 * 1.1033

-2.54

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €693 Mil.
Revenue was 928.004 + 887.339 + 948.844 + 913.452 = €3,678 Mil.
Gross Profit was 478.674 + 463.815 + 507.65 + 484.746 = €1,935 Mil.
Total Current Assets was €1,809 Mil.
Total Assets was €6,758 Mil.
Property, Plant and Equipment(Net PPE) was €897 Mil.
Depreciation, Depletion and Amortization(DDA) was €318 Mil.
Selling, General, & Admin. Expense(SGA) was €1,503 Mil.
Total Current Liabilities was €1,307 Mil.
Long-Term Debt & Capital Lease Obligation was €1,762 Mil.
Net Income was 61.439 + -249.242 + 79.378 + -17.746 = €-126 Mil.
Non Operating Income was 15.589 + -289.533 + -16.614 + -61.644 = €-352 Mil.
Cash Flow from Operations was 146.72 + 125.558 + 95.992 + -19.614 = €349 Mil.

Total Receivables was €647 Mil.
Revenue was 927.952 + 956.47 + 967.758 + 879.852 = €3,732 Mil.
Gross Profit was 488.048 + 513.08 + 549.626 + 473.068 = €2,024 Mil.
Total Current Assets was €1,787 Mil.
Total Assets was €7,215 Mil.
Property, Plant and Equipment(Net PPE) was €907 Mil.
Depreciation, Depletion and Amortization(DDA) was €312 Mil.
Selling, General, & Admin. Expense(SGA) was €1,520 Mil.
Total Current Liabilities was €1,104 Mil.
Long-Term Debt & Capital Lease Obligation was €1,864 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)
	=	(693.252 / 3677.639)	/	(646.64 / 3732.032)
	=	0.188505	/	0.173268
	=	1.0879

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)
	=	(2023.822 / 3732.032)	/	(1934.885 / 3677.639)
	=	0.542284	/	0.526122
	=	1.0307

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 - (1809.241 + 896.826) / 6758.29)	/	(1 - (1786.992 + 907.184) / 7214.992)
	=	0.599593	/	0.626586
	=	0.9569

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
	=	3677.639	/	3732.032
	=	0.9854

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))
	=	(312.186 / (312.186 + 907.184))	/	(318.235 / (318.235 + 896.826))
	=	0.256022	/	0.261909
	=	0.9775

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)
	=	(1502.548 / 3677.639)	/	(1520.374 / 3732.032)
	=	0.408563	/	0.407385
	=	1.0029

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)
	=	((1761.557 + 1306.725) / 6758.29)	/	((1864.4 + 1104.48) / 7214.992)
	=	0.454003	/	0.411488
	=	1.1033

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
	=	(-126.171 - -352.202	-	348.656)	/	6758.29
	=	-0.018144

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.

Dentsply Sirona has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Dentsply Sirona Beneish M-Score Related Terms

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Dentsply Sirona (WBO:XRAY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Dentsply Sirona Inc (WBO:XRAY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

XRAY:USA DY2:Germany

Address

13320 Ballantyne Corporate Place, Charlotte, NC, USA, 28277-3607

Website

https://www.dentsplysirona.com

Dentsply Sirona is one of the world's largest manufacturers of dental equipment and supplies. It is a result of a merger of equals in 2016 between Dentsply International (manufactured dental consumables and lab products) and Sirona Dental Systems (manufactured technologically-advanced dental equipment). The firm's wide portfolio consists of dental consumables, lab products, CAD/CAM and imaging technology, medical devices, and specialty products in orthodontics, endodontics, and implantation. It distributes two-thirds of its dental consumables, technology and equipment through third-party distributors and the remaining portfolio is either sold to labs and offices through the firm's salesforce or directly to consumers (such as Byte clear aligner).