GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Krones AG (XSWX:KRN) » Definitions » Beneish M-Score

Krones AG (XSWX:KRN) Beneish M-Score : -2.14 (As of Jun. 16, 2024)


View and export this data going back to 2014. Start your Free Trial

What is Krones 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 -2.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSWX:KRN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Med: -2.34   Max: -1.91
Current: -2.14

During the past 13 years, the highest Beneish M-Score of Krones AG was -1.91. The lowest was -3.28. And the median was -2.34.


Krones AG Beneish M-Score Historical Data

The historical data trend for Krones 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.

* Premium members only.

Krones AG Beneish M-Score Chart

Krones AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.68 -3.28 -2.71 -2.76 -2.14

Krones AG Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - -2.14 -

Competitive Comparison of Krones AG's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Krones 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.


Krones AG's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Krones AG's Beneish M-Score distribution charts can be found below:

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



Krones 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 Krones AG 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 * 0.8465+0.528 * 1.0291+0.404 * 1.1184+0.892 * 1.0717+0.115 * 0.954
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8075+4.679 * 0.019407-0.327 * 1.0007
=-2.38

* 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 CHF734 Mil.
Revenue was CHF4,452 Mil.
Gross Profit was CHF2,203 Mil.
Total Current Assets was CHF2,970 Mil.
Total Assets was CHF4,222 Mil.
Property, Plant and Equipment(Net PPE) was CHF719 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF157 Mil.
Selling, General, & Admin. Expense(SGA) was CHF133 Mil.
Total Current Liabilities was CHF2,218 Mil.
Long-Term Debt & Capital Lease Obligation was CHF97 Mil.
Net Income was CHF212 Mil.
Gross Profit was CHF0 Mil.
Cash Flow from Operations was CHF130 Mil.
Total Receivables was CHF809 Mil.
Revenue was CHF4,154 Mil.
Gross Profit was CHF2,115 Mil.
Total Current Assets was CHF2,967 Mil.
Total Assets was CHF4,116 Mil.
Property, Plant and Equipment(Net PPE) was CHF685 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF141 Mil.
Selling, General, & Admin. Expense(SGA) was CHF154 Mil.
Total Current Liabilities was CHF2,169 Mil.
Long-Term Debt & Capital Lease Obligation was CHF86 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)
=(734.38 / 4451.953) / (809.469 / 4154.047)
=0.164957 / 0.194863
=0.8465

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)
=(2115.448 / 4154.047) / (2203.138 / 4451.953)
=0.50925 / 0.49487
=1.0291

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 - (2970.414 + 719.167) / 4222.251) / (1 - (2967.479 + 684.551) / 4116.375)
=0.126158 / 0.112804
=1.1184

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
=4451.953 / 4154.047
=1.0717

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))
=(141.024 / (141.024 + 684.551)) / (156.856 / (156.856 + 719.167))
=0.170819 / 0.179055
=0.954

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)
=(133.405 / 4451.953) / (154.151 / 4154.047)
=0.029966 / 0.037109
=0.8075

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)
=((96.858 + 2218.072) / 4222.251) / ((85.939 + 2169.373) / 4116.375)
=0.548269 / 0.547888
=1.0007

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
=(211.731 - 0 - 129.788) / 4222.251
=0.019407

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.

Krones AG has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


Krones AG Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Krones AG's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Krones AG (XSWX:KRN) Business Description

Address
Bohmerwaldstrasse 5, Neutraubling, BY, DEU, 93073
Krones AG offers machinery and systems for filling, packaging, and producing beverages. Part of its product portfolio is information technology and planning associated with logistics and production lines. In addition to packaging, the company has cellar systems to treat and store sensitive beverages. Krones has two reportable segments: product filling and decoration, which is the highest revenue segment, and machines and lines for beverage production and process technology segment. Its customer base includes companies in the beverage, food, chemical, pharmaceutical, and cosmetic industries, but beverage companies account the Krones' revenue. While the company has a presence, Germany remains the central location for the development of machines, lines, and services.

Krones AG (XSWX:KRN) Headlines

No Headlines