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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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Newell Brands's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Newell Brands was -0.85. The lowest was -3.01. And the median was -2.49.
The historical data trend for Newell Brands'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.
Newell Brands Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Beneish M-Score | Get a 7-Day Free Trial | -2.41 | -2.78 | -2.56 | -2.30 | -2.79 |
Newell Brands 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 | -2.40 | -2.64 | -2.89 | -2.79 | -3.01 |
For the Household & Personal Products subindustry, Newell Brands'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.
For the Consumer Packaged Goods industry and Consumer Defensive sector, Newell Brands's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Newell Brands's Beneish M-Score falls into.
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 Newell Brands 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 * 0.8747 | + | 0.528 * 0.9753 | + | 0.404 * 1.0346 | + | 0.892 * 0.8992 | + | 0.115 * 0.8645 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.1055 | + | 4.679 * -0.061157 | - | 0.327 * 1.0158 | |||||||
= | -3.01 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was $958 Mil. Revenue was 1653 + 2076 + 2048 + 2204 = $7,981 Mil. Gross Profit was 504 + 621 + 621 + 629 = $2,375 Mil. Total Current Assets was $3,401 Mil. Total Assets was $12,100 Mil. Property, Plant and Equipment(Net PPE) was $1,686 Mil. Depreciation, Depletion and Amortization(DDA) was $338 Mil. Selling, General, & Admin. Expense(SGA) was $1,983 Mil. Total Current Liabilities was $2,956 Mil. Long-Term Debt & Capital Lease Obligation was $4,980 Mil. Net Income was -9 + -86 + -218 + 18 = $-295 Mil. Non Operating Income was -32 + -171 + -349 + -42 = $-594 Mil. Cash Flow from Operations was 32 + 251 + 402 + 354 = $1,039 Mil. |
Total Receivables was $1,218 Mil. Revenue was 1805 + 2285 + 2252 + 2534 = $8,876 Mil. Gross Profit was 482 + 600 + 658 + 836 = $2,576 Mil. Total Current Assets was $4,055 Mil. Total Assets was $13,276 Mil. Property, Plant and Equipment(Net PPE) was $1,784 Mil. Depreciation, Depletion and Amortization(DDA) was $301 Mil. Selling, General, & Admin. Expense(SGA) was $1,995 Mil. Total Current Liabilities was $3,291 Mil. Long-Term Debt & Capital Lease Obligation was $5,281 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) |
= | (958 / 7981) | / | (1218 / 8876) | |
= | 0.120035 | / | 0.137224 | |
= | 0.8747 |
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) | |
= | (2576 / 8876) | / | (2375 / 7981) | |
= | 0.290221 | / | 0.297582 | |
= | 0.9753 |
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 - (3401 + 1686) / 12100) | / | (1 - (4055 + 1784) / 13276) | |
= | 0.579587 | / | 0.560184 | |
= | 1.0346 |
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 | |
= | 7981 | / | 8876 | |
= | 0.8992 |
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)) |
= | (301 / (301 + 1784)) | / | (338 / (338 + 1686)) | |
= | 0.144365 | / | 0.166996 | |
= | 0.8645 |
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) |
= | (1983 / 7981) | / | (1995 / 8876) | |
= | 0.248465 | / | 0.224763 | |
= | 1.1055 |
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) |
= | ((4980 + 2956) / 12100) | / | ((5281 + 3291) / 13276) | |
= | 0.655868 | / | 0.645676 | |
= | 1.0158 |
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 | |
= | (-295 - -594 | - | 1039) | / | 12100 | |
= | -0.061157 |
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.
Newell Brands has a M-score of -3.01 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Newell Brands's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Bradford R Turner | officer: Sr. VP, Gen. Sounsel & Secy | C/O NEWELL BRANDS INC., 6055 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328 |
Gaoxiang Hu | director | 16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160 |
Dennis Senovich | officer: Chief Supply Chain Officer | 6655 PEACHTREE DUNWOODY RD, ATLANTA GA 30328 |
Mark J Erceg | officer: Chief Financial Officer | 248 E. SKYLINE DRIVE, WASHINGTON UT 84780 |
David Willetts | director | 16690 COLLINS AVENUE - PH-1, SUNNY ISLES BEACH FL 33160 |
Brett Icahn | director | C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
Melanie Arlene Huet | officer: President, Brand Management | 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328 |
Stephanie Stahl | director | C/O KNOLL, INC., 1235 WATER STREET, EAST GREENVILLE PA 18041 |
James Craigie | director | 500 CHARLES EWING BLVD, EWING NJ 08628 |
Mather Courtney | director | C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
Maria Fernanda Mejia | officer: CEO, International | ONE KELLOGG SQUARE, PO BOX 3599, BATTLE CREEK MI 49016-3599 |
Carl C Icahn | 10 percent owner | C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160 |
Icahn Partners Lp | 10 percent owner | 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
Icahn Partners Master Fund Lp | 10 percent owner | 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
Kristine Kay Malkoski | officer: Business Unit CEO - Food | 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328 |
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