Goodyear Tire & Rubber Co (XBRU:GT) Beneish M-Score : -2.59 (As of Apr. 25, 2024)

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What is Goodyear Tire & Rubber Co 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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Goodyear Tire & Rubber Co's Beneish M-Score or its related term are showing as below:

XBRU:GT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99 Med: -2.56 Max: -1.48
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Goodyear Tire & Rubber Co was -1.48. The lowest was -2.99. And the median was -2.56.

Goodyear Tire & Rubber Co Beneish M-Score Historical Data

The historical data trend for Goodyear Tire & Rubber Co'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.

Goodyear Tire & Rubber Co Beneish M-Score Chart

Goodyear Tire & Rubber Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.90

-2.99

-2.12

-2.36

-2.59

Goodyear Tire & Rubber Co 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															-2.36	-2.42	-2.54	-2.58	-2.59

Competitive Comparison of Goodyear Tire & Rubber Co's Beneish M-Score

For the Auto Parts subindustry, Goodyear Tire & Rubber Co'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.

Goodyear Tire & Rubber Co's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Goodyear Tire & Rubber Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Goodyear Tire & Rubber Co's Beneish M-Score falls into.

Goodyear Tire & Rubber Co 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 Goodyear Tire & Rubber Co 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 * 1.0824

0.528 * 1.0593

0.404 * 1.0299

0.892 * 0.9391

0.115 * 0.9828

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0431

4.679 * -0.03926

0.327 * 1.0103

-2.61

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €2,504 Mil.
Revenue was 4691.372 + 4818.054 + 4492.241 + 4614.894 = €18,617 Mil.
Gross Profit was 959.182 + 909.827 + 686.712 + 698.632 = €3,254 Mil.
Total Current Assets was €7,015 Mil.
Total Assets was €19,791 Mil.
Property, Plant and Equipment(Net PPE) was €8,690 Mil.
Depreciation, Depletion and Amortization(DDA) was €929 Mil.
Selling, General, & Admin. Expense(SGA) was €2,609 Mil.
Total Current Liabilities was €6,554 Mil.
Long-Term Debt & Capital Lease Obligation was €7,021 Mil.
Net Income was -266.847 + -83.393 + -191.984 + -94.334 = €-637 Mil.
Non Operating Income was -430.99 + -210.825 + -100.607 + -56.974 = €-799 Mil.
Cash Flow from Operations was 1133.412 + 215.51 + 314.743 + -723.85 = €940 Mil.

Total Receivables was €2,464 Mil.
Revenue was 5073.056 + 5364.11 + 4930.552 + 4456.464 = €19,824 Mil.
Gross Profit was 815.616 + 1016.06 + 983.84 + 855.336 = €3,671 Mil.
Total Current Assets was €8,180 Mil.
Total Assets was €21,175 Mil.
Property, Plant and Equipment(Net PPE) was €8,751 Mil.
Depreciation, Depletion and Amortization(DDA) was €917 Mil.
Selling, General, & Admin. Expense(SGA) was €2,664 Mil.
Total Current Liabilities was €6,740 Mil.
Long-Term Debt & Capital Lease Obligation was €7,635 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)
	=	(2504.327 / 18616.561)	/	(2463.84 / 19824.182)
	=	0.134521	/	0.124285
	=	1.0824

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)
	=	(3670.852 / 19824.182)	/	(3254.353 / 18616.561)
	=	0.18517	/	0.17481
	=	1.0593

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 - (7015.05 + 8690.409) / 19790.694)	/	(1 - (8179.76 + 8750.88) / 21174.864)
	=	0.206422	/	0.200437
	=	1.0299

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
	=	18616.561	/	19824.182
	=	0.9391

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))
	=	(917.348 / (917.348 + 8750.88))	/	(928.614 / (928.614 + 8690.409))
	=	0.094883	/	0.096539
	=	0.9828

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)
	=	(2609.434 / 18616.561)	/	(2663.914 / 19824.182)
	=	0.140167	/	0.134377
	=	1.0431

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)
	=	((7020.552 + 6553.799) / 19790.694)	/	((7635.072 + 6740.16) / 21174.864)
	=	0.685896	/	0.678882
	=	1.0103

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
	=	(-636.558 - -799.396	-	939.815)	/	19790.694
	=	-0.03926

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.

Goodyear Tire & Rubber Co has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

Goodyear Tire & Rubber Co Beneish M-Score Related Terms

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Goodyear Tire & Rubber Co (XBRU:GT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Goodyear Tire & Rubber Co (XBRU:GT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GT:USA GT:Mexico GTR:Germany GYT:Austria

Address

200 Innovation Way, Akron, OH, USA, 44316-0001

Website

https://www.goodyear.com

Goodyear Tire & Rubber Co manufactures and sells a variety of rubber tires under the Goodyear brand name. The firm's tires are used for automobiles, trucks, buses, aircraft, motorcycles, mining equipment, farm equipment, and industrial equipment. The company operates its business through three operating segments representing its regional tire businesses: Americas; Europe, the Middle East, and Africa (EMEA); and the Asia Pacific.