Westlake Beneish M-Score Historical Data
The historical data trend for Westlake'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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Westlake Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.48 |
-2.60 |
-2.25 |
-2.62 |
-2.75 |
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Westlake Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.62 |
-2.81 |
-2.81 |
-2.70 |
-2.75 |
Competitive Comparison
For the Specialty Chemicals subindustry, Westlake'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.
Westlake Beneish M-Score Distribution
For the Chemicals industry and Basic Materials sector, Westlake's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Westlake's Beneish M-Score falls into.
Westlake 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 Westlake 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 * 1.1189 | + | 0.528 * 1.4583 | + | 0.404 * 0.928 | + | 0.892 * 0.7945 | + | 0.115 * 0.9783 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.3542 | + | 4.679 * -0.072641 | - | 0.327 * 1.0185 |
| = | -2.75 |
* 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 $1,601 Mil.
Revenue was 2826 + 3115 + 3251 + 3356 = $12,548 Mil.
Gross Profit was 199 + 586 + 642 + 792 = $2,219 Mil.
Total Current Assets was $6,609 Mil.
Total Assets was $21,035 Mil.
Property, Plant and Equipment(Net PPE) was $9,216 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,097 Mil.
Selling, General, & Admin. Expense(SGA) was $865 Mil.
Total Current Liabilities was $2,790 Mil.
Long-Term Debt & Capital Lease Obligation was $5,218 Mil.
Net Income was -497 + 285 + 297 + 394 = $479 Mil.
Non Operating Income was -396 + 28 + 20 + 19 = $-329 Mil.
Cash Flow from Operations was 573 + 696 + 555 + 512 = $2,336 Mil.
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Total Receivables was $1,801 Mil.
Revenue was 3299 + 3956 + 4483 + 4056 = $15,794 Mil.
Gross Profit was 567 + 776 + 1445 + 1285 = $4,073 Mil.
Total Current Assets was $5,973 Mil.
Total Assets was $20,550 Mil.
Property, Plant and Equipment(Net PPE) was $9,092 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,056 Mil.
Selling, General, & Admin. Expense(SGA) was $804 Mil.
Total Current Liabilities was $2,298 Mil.
Long-Term Debt & Capital Lease Obligation was $5,383 Mil.
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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) |
| = | (1601 / 12548) | / | (1801 / 15794) |
| = | 0.12759 | / | 0.114031 |
| | = | 1.1189 |
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) |
| = | (4073 / 15794) | / | (2219 / 12548) |
| = | 0.257883 | / | 0.176841 |
| | = | 1.4583 |
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 - (6609 + 9216) / 21035) | / | (1 - (5973 + 9092) / 20550) |
| = | 0.247682 | / | 0.26691 |
| | = | 0.928 |
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 |
| = | 12548 | / | 15794 |
| | = | 0.7945 |
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)) |
| = | (1056 / (1056 + 9092)) | / | (1097 / (1097 + 9216)) |
| = | 0.10406 | / | 0.106371 |
| | = | 0.9783 |
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) |
| = | (865 / 12548) | / | (804 / 15794) |
| = | 0.068935 | / | 0.050905 |
| | = | 1.3542 |
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) |
| = | ((5218 + 2790) / 21035) | / | ((5383 + 2298) / 20550) |
| = | 0.380699 | / | 0.373771 |
| | = | 1.0185 |
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 |
| = | (479 - -329 | - | 2336) | / | 21035 |
| | = | -0.072641 |
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.
Westlake has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.
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