Whirlpool (BSP:WHRL3) Beneish M-Score : -2.43 (As of Jun. 07, 2024)

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What is Whirlpool 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:WHRL3' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72 Med: -2.52 Max: -0.65
Current: -2.43

During the past 13 years, the highest Beneish M-Score of Whirlpool was -0.65. The lowest was -3.72. And the median was -2.52.

Whirlpool Beneish M-Score Historical Data

The historical data trend for Whirlpool'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.

Whirlpool Beneish M-Score Chart

Whirlpool Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.65

-3.31

-1.70

-2.53

-2.93

Whirlpool 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															-3.04	-2.89	-2.56	-2.93	-2.43

Competitive Comparison of Whirlpool's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, Whirlpool'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.

Whirlpool's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Whirlpool's Beneish M-Score distribution charts can be found below:

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

Whirlpool 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 Whirlpool 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 * 0.9619

0.528 * 0.9878

0.404 * 1.1788

0.892 * 1.0821

0.115 * 0.9517

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9172

4.679 * -0.013103

0.327 * 1.0001

-2.43

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$2,724 Mil.
Revenue was 2734.012 + 3449.892 + 2786.3 + 2634.197 = R$11,604 Mil.
Gross Profit was 370.342 + 612.587 + 490.961 + 425.904 = R$1,900 Mil.
Total Current Assets was R$6,217 Mil.
Total Assets was R$8,981 Mil.
Property, Plant and Equipment(Net PPE) was R$1,545 Mil.
Depreciation, Depletion and Amortization(DDA) was R$224 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,085 Mil.
Total Current Liabilities was R$5,957 Mil.
Long-Term Debt & Capital Lease Obligation was R$171 Mil.
Net Income was 204.237 + -68.026 + 125.521 + 125.906 = R$388 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was -159.977 + 672.037 + -41.855 + 35.109 = R$505 Mil.

Total Receivables was R$2,617 Mil.
Revenue was 2617.599 + 2957.059 + 2609.331 + 2540.456 = R$10,724 Mil.
Gross Profit was 436.58 + 435.74 + 420.993 + 441.043 = R$1,734 Mil.
Total Current Assets was R$6,001 Mil.
Total Assets was R$8,563 Mil.
Property, Plant and Equipment(Net PPE) was R$1,576 Mil.
Depreciation, Depletion and Amortization(DDA) was R$216 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,094 Mil.
Total Current Liabilities was R$5,664 Mil.
Long-Term Debt & Capital Lease Obligation was R$179 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)
	=	(2723.654 / 11604.401)	/	(2616.955 / 10724.445)
	=	0.234709	/	0.244018
	=	0.9619

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)
	=	(1734.356 / 10724.445)	/	(1899.794 / 11604.401)
	=	0.16172	/	0.163713
	=	0.9878

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 - (6217.221 + 1545.341) / 8981.182)	/	(1 - (6001.479 + 1575.611) / 8562.683)
	=	0.135686	/	0.115103
	=	1.1788

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
	=	11604.401	/	10724.445
	=	1.0821

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))
	=	(215.525 / (215.525 + 1575.611))	/	(223.673 / (223.673 + 1545.341))
	=	0.120329	/	0.126439
	=	0.9517

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)
	=	(1085.415 / 11604.401)	/	(1093.726 / 10724.445)
	=	0.093535	/	0.101984
	=	0.9172

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)
	=	((171.128 + 5957.495) / 8981.182)	/	((179.157 + 5663.577) / 8562.683)
	=	0.682385	/	0.682349
	=	1.0001

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
	=	(387.638 - 0	-	505.314)	/	8981.182
	=	-0.013103

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.

Whirlpool has a M-score of -2.43 suggests that the company is unlikely to be a manipulator.

Whirlpool Beneish M-Score Related Terms

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Whirlpool (BSP:WHRL3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Whirlpool SA (BSP:WHRL3) » Definitions » Beneish M-Score

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WHRL4:Brazil

Address

Av Das Nacoes Unidas 12995 - 32th Floor, Sao Paulo, SP, BRA, 4578000

Website

http://www.whirlpool.com.br

Whirlpool SA is a manufacturer of home appliances in Brazil. The corporate purpose is Industrialization, commercialization, import, export, commission, consignment and representation of Metallurgical, chemical, household cleaning, electrical and electronic products, other goods consumer products, food products. The company provides electronic products, machinery, and appliances for personal and commercial use, such as refrigerators, air conditioners, washing machines, food mixers, cooking equipment, microwaves, vacuum cleaners, and water purifiers. It is a subsidiary of Whirlpool Corporation.

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