Watts Water Technologies Beneish M-Score Historical Data
The historical data trend for Watts Water Technologies'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.
Watts Water Technologies Beneish M-Score Chart
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Watts Water Technologies Annual Data
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Dec14 |
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Dec23 |
| Beneish M-Score |
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-2.53 |
-2.76 |
-2.41 |
-2.34 |
-2.50 |
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Watts Water Technologies Quarterly Data
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Dec19 |
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Sep24 |
| Beneish M-Score |
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-2.58 |
-2.50 |
-2.44 |
-2.48 |
-2.44 |
Competitive Comparison of Watts Water Technologies's Beneish M-Score
For the Specialty Industrial Machinery subindustry, Watts Water Technologies'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.
Watts Water Technologies's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's Beneish M-Score falls into.
Watts Water Technologies 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 Watts Water Technologies 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 * 1.0074 | + | 0.528 * 0.9748 | + | 0.404 * 1.1597 | + | 0.892 * 1.1236 | + | 0.115 * 0.987 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0383 | + | 4.679 * -0.017715 | - | 0.327 * 1.106 |
| = | -2.44 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was $292 Mil.
Revenue was 543.6 + 597.3 + 570.9 + 547.5 = $2,259 Mil.
Gross Profit was 257.1 + 284.8 + 267.5 + 255.6 = $1,065 Mil.
Total Current Assets was $1,066 Mil.
Total Assets was $2,399 Mil.
Property, Plant and Equipment(Net PPE) was $255 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General, & Admin. Expense(SGA) was $675 Mil.
Total Current Liabilities was $418 Mil.
Long-Term Debt & Capital Lease Obligation was $212 Mil.
Net Income was 69.1 + 82 + 72.6 + 55.7 = $279 Mil.
Non Operating Income was -4.3 + -0.1 + -0.6 + -4.6 = $-10 Mil.
Cash Flow from Operations was 90.7 + 85.3 + 45.6 + 109.9 = $332 Mil.
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Total Receivables was $258 Mil.
Revenue was 504.3 + 532.8 + 471.7 + 501.9 = $2,011 Mil.
Gross Profit was 234.4 + 252.8 + 218.1 + 218.6 = $924 Mil.
Total Current Assets was $1,042 Mil.
Total Assets was $2,018 Mil.
Property, Plant and Equipment(Net PPE) was $194 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General, & Admin. Expense(SGA) was $578 Mil.
Total Current Liabilities was $380 Mil.
Long-Term Debt & Capital Lease Obligation was $98 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) |
| = | (291.6 / 2259.3) | / | (257.6 / 2010.7) |
| = | 0.129067 | / | 0.128115 |
| | = | 1.0074 |
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) |
| = | (923.9 / 2010.7) | / | (1065 / 2259.3) |
| = | 0.459492 | / | 0.471385 |
| | = | 0.9748 |
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 - (1065.6 + 255.1) / 2399.1) | / | (1 - (1041.6 + 194) / 2017.6) |
| = | 0.449502 | / | 0.387589 |
| | = | 1.1597 |
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 |
| = | 2259.3 | / | 2010.7 |
| | = | 1.1236 |
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)) |
| = | (39.9 / (39.9 + 194)) | / | (53.3 / (53.3 + 255.1)) |
| = | 0.170586 | / | 0.172827 |
| | = | 0.987 |
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) |
| = | (674.8 / 2259.3) | / | (578.4 / 2010.7) |
| = | 0.298677 | / | 0.287661 |
| | = | 1.0383 |
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) |
| = | ((211.8 + 417.5) / 2399.1) | / | ((98.2 + 380.3) / 2017.6) |
| = | 0.262307 | / | 0.237163 |
| | = | 1.106 |
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 |
| = | (279.4 - -9.6 | - | 331.5) | / | 2399.1 |
| | = | -0.017715 |
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.
Watts Water Technologies has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.
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