Volkswagen AG (XBUL:VOW3) Beneish M-Score : -2.49 (As of Dec. 11, 2024)

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What is Volkswagen AG 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XBUL:VOW3' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73 Med: -2.47 Max: -2.26
Current: -2.49

During the past 13 years, the highest Beneish M-Score of Volkswagen AG was -2.26. The lowest was -2.73. And the median was -2.47.

Volkswagen AG Beneish M-Score Historical Data

The historical data trend for Volkswagen AG'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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Volkswagen AG Beneish M-Score Chart

Volkswagen AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.42

-2.59

-2.73

-2.46

-2.37

Volkswagen AG 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															-2.47	-2.37	-2.39	-2.42	-2.49

Competitive Comparison of Volkswagen AG's Beneish M-Score

For the Auto Manufacturers subindustry, Volkswagen AG'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.

Volkswagen AG's Beneish M-Score Distribution in the Vehicles & Parts Industry

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

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

Volkswagen AG 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 Volkswagen AG 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 * 1.0172

0.528 * 1.0135

0.404 * 1.0015

0.892 * 1.0623

0.115 * 0.9871

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9931

4.679 * -0.009098

0.327 * 1.0295

-2.45

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was лв246,790 Mil.
Revenue was 162526.196 + 167391.271 + 153050.574 + 177401.679 = лв660,370 Mil.
Gross Profit was 27042.828 + 31697.064 + 27474.1 + 33975.773 = лв120,190 Mil.
Total Current Assets was лв534,749 Mil.
Total Assets was лв1,307,675 Mil.
Property, Plant and Equipment(Net PPE) was лв284,581 Mil.
Depreciation, Depletion and Amortization(DDA) was лв59,556 Mil.
Selling, General, & Admin. Expense(SGA) was лв70,749 Mil.
Total Current Liabilities was лв464,819 Mil.
Long-Term Debt & Capital Lease Obligation was лв266,415 Mil.
Net Income was 2828.956 + 6567.987 + 6954.724 + 9826.257 = лв26,178 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = лв0 Mil.
Cash Flow from Operations was 15198.906 + 5465.288 + 3581.815 + 13828.793 = лв38,075 Mil.

Total Receivables was лв228,395 Mil.
Revenue was 157012.707 + 161848.506 + 152226.84 + 150551.015 = лв621,639 Mil.
Gross Profit was 26702.814 + 31783.837 + 30350.672 + 25830.771 = лв114,668 Mil.
Total Current Assets was лв488,033 Mil.
Total Assets was лв1,184,046 Mil.
Property, Plant and Equipment(Net PPE) was лв254,484 Mil.
Depreciation, Depletion and Amortization(DDA) was лв52,426 Mil.
Selling, General, & Admin. Expense(SGA) was лв67,060 Mil.
Total Current Liabilities was лв400,986 Mil.
Long-Term Debt & Capital Lease Obligation was лв242,151 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)
	=	(246790.141 / 660369.72)	/	(228394.792 / 621639.068)
	=	0.373715	/	0.367407
	=	1.0172

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)
	=	(114668.094 / 621639.068)	/	(120189.765 / 660369.72)
	=	0.184461	/	0.182004
	=	1.0135

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 - (534749.249 + 284581.344) / 1307675.443)	/	(1 - (488032.813 + 254484.252) / 1184046.476)
	=	0.373445	/	0.372899
	=	1.0015

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
	=	660369.72	/	621639.068
	=	1.0623

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))
	=	(52426.214 / (52426.214 + 254484.252))	/	(59555.653 / (59555.653 + 284581.344))
	=	0.170819	/	0.173058
	=	0.9871

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)
	=	(70749.455 / 660369.72)	/	(67059.655 / 621639.068)
	=	0.107136	/	0.107876
	=	0.9931

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)
	=	((266414.726 + 464818.542) / 1307675.443)	/	((242151.451 + 400986.298) / 1184046.476)
	=	0.559186	/	0.543169
	=	1.0295

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
	=	(26177.924 - 0	-	38074.802)	/	1307675.443
	=	-0.009098

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.

Volkswagen AG has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

Volkswagen AG Beneish M-Score Related Terms

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Volkswagen AG Business Description

Industry

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Comparable Companies

Address

Berliner Ring 2, Wolfsburg, NI, DEU, 38440

Website

https://www.volkswagenag.com

Volkswagen is the second-largest automotive original equipment manufacturer by vehicle sales globally, selling 9.4 million vehicles in 2023. 80% of group revenue is generated by its four vehicle segments—core (Volkswagen, SEAT, Skoda, and VW commercial), progressive (Audi, Lamborghini, and Bentley), sports luxury (Porsche), and Traton commercial vehicles (Traton, Scania, Navistar, MAN, and VW truck and bus). It also has a vehicle software business (Cariad), batteries, and power engineering production and financial services.

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